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Robin Williams’ estate plan

By Judy Martel · Bankrate.com
Monday, August 25, 2014
Posted: 6 am ET

Family situations can get complicated and it's no different for the rich and famous. The death of comedian and actor Robin Williams this month puts a spotlight on the reasons for careful estate planning.

wealth-blog-robin-williams-posing-during-a-photocall-in-rome

Actor and comedian Robin Williams died earlier this month. © ALESSIA PIERDOMENICO/Reuters/Corbis

Williams had been married twice before, with children from each marriage. He was married to his third wife for three years before his death, according to Forbes. In extended families, trusts can prove valuable as a way to ensure the money goes to the intended heirs with a minimum of fuss and legal wrangling.

The setup

Reportedly, Williams put his real estate in one trust and established another for his three children, who range in age from 22 to 31. He used a popular strategy where the children inherit from the trust three times: at ages 21, 25 and in the final payout, at age 30.

The theory with this strategy is that kids have time to mature and possibly begin their own careers without gobs of money messing up their lives at the tender age of 18 or 21.

The second trust, which holds his real estate, could have equity worth $25 million after the sale of his Napa Valley mansion and the mortgages are paid, Forbes notes. Estimates of the remainder of his estate are in the $50 million neighborhood, but some believe that number is high.

A matter of privacy

The complete details of Williams' estate plan are not known, but recently, a website got ahold of the trust document for his children and published it, according to Investment News.

Trusts are favored among the rich and famous because they ensure that the creator's wishes for the estate are carried out away from the public eye. Unlike a will, a trust typically does not go through probate and is not made public by the courts. So how did this particular trust become public?

Investment News states that it happened because an attorney petitioned the courts for a new co-trustee, after the original one had died in 2008. Had the trust stated that an attorney or another person had the power to name a successor trustee, the trust would likely have remained private.

The rich and famous aren't immune to estate-planning mistakes. Read about these celebrity probate blowups.

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18 Comments
Mariann
September 13, 2014 at 9:49 pm

Robin Williams, was A very funny comedian and A good actor I always enjoy him on stage and his movies. We lost A great person rest in peace Robin William. God bless, Robin Williams, family my prayers are with you.

Margie
September 13, 2014 at 9:41 pm

Robin gave my family hour's of fun and laughter and we will continue to watch his movies. Our hearts and prayers go out to his family. Thank you family for sharing him with us. God Bless

Cheryl
September 13, 2014 at 7:30 pm

To Bill
You should read carefully before you comment.
The article is dated AUGUST 25th

Dan
September 13, 2014 at 3:29 pm

Its sad when the media cares how a person died and how much they are worth.They need to think about the kids and what they are going through,let it go people!Blessing to the kids and prayers that they knew their father loved them very much and time heals the heart.So please leave them alone,if it was your family would you like all the details in every paper and mag.We lost to greats this year in Robin and Joan they will be missed enough said!

jessica
September 13, 2014 at 6:07 am

Loved Robin Williams!! Very sad he is gone

Bill
September 09, 2014 at 7:08 pm

This is SEPTEMBER. Robin Williams died in AUGUST. That was LAST MONTH not THIS MONTH!

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