.png)
Avoid This Common Estate Planning Mistake Without Needing $80M
- Jeff Berenholz
- Apr 26
- 3 min read
Estate planning is not just for multimillionaires. While the high-profile case of actor Gene Hackman and his wife, Betsy, might seem unique because of their significant wealth, it highlights a critical issue that affects families of all backgrounds: simultaneous deaths. At Jeffrey S. Berenholz, LLC, we've seen firsthand how often this scenario is overlooked in estate planning.
Understanding the Importance of a Simultaneous Death Clause
A simultaneous death clause is a vital provision included in wills or trusts, specifically addressing situations when spouses or beneficiaries pass away within a short time of each other. Without this clause, state laws assume who died first, potentially causing significant unintended consequences, from asset misallocation to severe tax complications.
Take, for example, a typical scenario without a simultaneous death clause: If one spouse passes away shortly before the other, even by hours or days, the surviving spouse inherits all assets, only to pass away soon after. Now, assets must pass through probate twice, leading to increased legal fees, probate delays, and possible family disputes.
The Hackman Example: Why Wealth Isn't the Main Issue
When Gene and Betsy Hackman died within days of each other, their significant age difference made it easy to assume Gene would pass first, potentially making Betsy his sole heir. But life doesn’t always follow assumptions. Without a simultaneous death clause, Betsy's intended beneficiaries—charities she deeply cared about—could have lost significant funds or faced complicated legal challenges.
Fortunately, Betsy Hackman’s foresight in estate planning included a clearly defined simultaneous death clause. Her will specifically stated that if she and Gene passed away within 90 days of each other, their deaths should be legally treated as simultaneous. This careful planning ensured that her assets bypassed unnecessary legal hurdles and went directly to her chosen charities.
How a Simultaneous Death Clause Protects Your Assets
Including a simultaneous death clause in your estate plan offers several essential protections:
Avoids Unintended Beneficiaries: Ensures assets reach your chosen heirs or charitable causes directly.
Reduces Probate Complications: Prevents multiple probate processes and associated legal fees.
Minimizes Family Disputes: Clearly defined wishes leave less room for disagreements among heirs.
Tax Efficiency: Avoids unnecessary taxes triggered by unintended transfers or repeated probate actions.
Who Needs to Consider a Simultaneous Death Clause?
You don’t need substantial wealth to require a simultaneous death clause. Here’s who should prioritize this critical estate planning detail:
Married Couples: Especially those with assets they intend to pass to specific beneficiaries or charities.
Individuals with Significant Age Differences: Like the Hackmans, assumptions can be misleading.
Those with Specific Heirs or Charitable Goals: To ensure your legacy remains exactly as intended.
Anyone Who Wants Clarity and Control: Regardless of financial status, clarity helps prevent unintended consequences.
Avoiding the Mistake: Taking the Next Step
The lesson from Gene and Betsy Hackman’s story is clear—careful estate planning protects your wishes and your loved ones. The inclusion of a simultaneous death clause is a simple yet powerful step that anyone can and should take, regardless of their net worth.
At Jeffrey S. Berenholz, LLC, our goal is to ensure your estate plan covers all scenarios clearly and effectively. Our expert legal team guides you through each step, helping you create a customized estate plan that matches your exact intentions and provides peace of mind.
Start Your Estate Planning Journey Today
Estate planning doesn't have to be complicated or overwhelming. Whether you have $80 million or a modest family home, we can help safeguard your wishes and assets.
Take control and ensure your legacy remains intact—book your Peace of Mind Planning Session today. During this session, we'll review your goals, explain your options, and outline our transparent, flat-fee pricing. The session is normally $450, but mention this blog post, and we’ll waive the fee!
Comentarios