Tragic Hackman Case Demonstrates Importance of Thorough Estate Planning

When two-time Academy Award winner Gene Hackman and his wife of 30 years, Betsy Arakawa, were found dead in their New Mexico home, it took several weeks to determine what had happened. Now that an investigation has revealed the sequence of events, it appears that nothing in Hackman’s estate plan provides instructions on how his $80 million estate should be distributed in this situation. Accordingly, his assets will likely pass to his children based on the state’s intestacy laws. Once again, it has been shown that even the rich and famous frequently leave meaningful gaps in their estate plans.  

Hackman and Arakawa’s wills appear to have been crafted with the assumption that Hackman, 30 years older than his wife, would pass away first. Arakawa’s will included a provision that, if the couple died within 90 days of each other, her estate would be placed in a trust and eventually donated to charity after covering medical expenses. However, Hackman’s will did not account for the possibility of his wife predeceasing him, so even though he did not name his children as heirs in any document, they will inherit what he owned, though we’ll never know if that was his intention. 

This situation highlights the importance of preparing for unexpected scenarios in estate planning. Without clear provisions for alternative beneficiaries or simultaneous deaths, even valid plans can lead to legal uncertainty and unintended outcomes. Some ways you can avoid confusion and ensure that your wishes are honored include the following:

• Prepare even for unlikely contingencies — Ensure your will specifies alternative beneficiaries in case your primary beneficiary predeceases you or dies within a short timeframe. Given Hackman’s apparently diminished state and particular circumstances, he was not able to revise his will after his wife passed away suddenly.
• Address simultaneous deaths — Include provisions for how assets should be distributed if you and your spouse pass away in close succession, such as in a vehicle accident, or under uncertain circumstances.
• Utilize trusts — While a last will and testament does not go into effect until the testator dies, you can have your assets administered through a trust while you are alive and leave directions for how the trustee should distribute remaining property upon your death.
• Keep your estate plan current — You should always consider revising your estate planning instruments when a major life event, such as a divorce or family death, occurs. Regular reviews with a knowledgeable trusts and estates attorney can also reduce the likelihood that something important will be overlooked. 

Donald R. Fuller, Jr., PLLC provides thorough, personalized guidance to North Carolina residents on a wide range of estate planning issues. For a consultation, please call 828-639-8188 or contact me online. My office is in Hickory.