What We Learned From David Bowie: The Importance of Trusts
Posted on Mar 17, 2016
Rock legend David Bowie passed away this past January at the age of 69. We often hear about celebrities who pass away without an estate plan and their families go through a long and drawn out battle in the court room. This is not the case with David Bowie’s estate. In order to protect his family and ensure his estate was distributed as he wished, Bowie made sure to have his estate plan in order before he passed away.
Mr. Bowie had 3 main beneficiaries under his Will. Those beneficiaries included his second wife, Iman Bowie, their daughter, who is age 15, and his son from his first marriage.
Using a Trust as an Effective Estate Planning Vehicle
The New York Times reported that 50% of David Bowie’s estate went to his wife in trust and another 25% went to his daughter in trust, with the remaining 25% going to his son. In addition, David Bowie had a specific bequest provisions in his Will, wherein he left specific items or amounts of money to those he chose.
Mr. Bowie utilized theses trusts in order to:
Maximize the value of the assets in the trust by saving on estate taxes;
When leaving assets to a minor (under the age of 18), it can be helpful to put those assets in a trust in order to name a trustee to manage the assets until the child is old enough to be financially responsible.
Using a trust can keep certain assets private from public record.
David Bowie is a perfect example of why having an estate plan is so important. Save your loved ones time, money, and stress by having your estate plan in order.