This week, we’re continuing to look at the lives of 4 celebrities and how they’re preparing for the inevitable (or didn’t!). Last week, we examined Michael Jackson’s planning and the holes in his plan that resulted in his family being embroiled in court and conflict for 15 years and counting (if you missed it, go back and check it out!). In this second article of our 4-part celebrity series, Vanilla Ice chimes in with his estate planning experience, advice, and lessons learned on a video he posted to his YouTube channel. He has a lot to say! I’ll share some comments users posted with their takeaways and pull out a few lessons we can also learn.
Let’s start with a topic no one likes to discuss: taxes.
Vanilla Ice shares the story of his buddy Mark, whose parents owned a sprawling property in Palm Beach, Florida. When they passed, Mark and his siblings sold the estate, expecting to be set for life. However, estate taxes ended up taking over 80% of their profit. Ouch.
Vanilla Ice calls this tax a “generational wealth killer,” he’s not wrong. Estate taxes can sneak up and bite a massive chunk of your wealth. And the thing is, with a proper estate plan, this doesn’t have to happen! The key is to educate yourself. Knowing what you’re up against helps you plan smarter so that more of your hard-earned assets reach your heirs.
In the video’s comments section, one user wrote that he agreed. He says, “As a Certified Public Accountant (CPA), I love Rob’s recommendation to gain an understanding of taxes. We spend more on taxes than everything else in life.”
I agree, too! I believe that education is the most essential part of estate planning. That’s why my planning process begins with a Life & Legacy Planning Session, where you’ll get the plain and straightforward education you need to make wise decisions about your planning, including how to keep your family out of court and out of conflict, minimize taxes, and ultimately create a plan that works for you and the people you love, when they need it.
So, first lesson: if you suspect your family could pay estate taxes at your death, don’t wait to plan. There’s way too much at stake. Book a Discovery Call, and let’s get you in the know about the planning you want and need for yourself and the people you love.
Let’s talk life insurance next.
(“Ice” and “cool” - get it? Sorry, I couldn’t resist.)
Life insurance isn’t just for covering funeral costs – it’s a secret weapon in estate planning. Vanilla Ice suggests “maxing out your life insurance” to give your kids as much money as possible. What makes life insurance “cool” is that death benefits aren’t subject to income tax, meaning your heirs can get more bang for your buck than if you were investing the money you’d put into life insurance premiums into just about any other asset class.
It’s worth considering what Vanilla Ice suggests here. When you take out a life insurance policy, the payout can cover any necessary taxes, probate fees, and debts, ensuring your heirs receive the lion’s share of your assets. Life insurance can help with short-term needs, like paying off a mortgage, or it can serve your family’s long-term needs, like maintaining the lifestyle to which they’re accustomed.
When you get educated via our Life & Legacy Planning process, we’ll look at your life insurance, whether you have the right amount and the right type, and ensure you are 100% clear on what it might mean to “max out your life insurance” and if you really should do that. We’ll consider whether you need more insurance, less insurance, or different insurance based on your family dynamics, assets, and what you want for the people you love after you leave.
Second lesson: If you want to be cool, make the correct type of life insurance part of your planning.
Trusts might sound like something only the super-wealthy need, but they’re an intelligent tool for anyone looking to protect their assets. One commenter agreed, saying he’s learned this from experience, “It isn’t just millionaires that need planning. I’ve seen families torn apart and fighting over $100,000 or less. Siblings [are] not speaking to each other again over $50,000.”
Ice mentions irrevocable trusts specifically. These types of trusts let you transfer assets to a beneficiary while removing the assets from your taxable estate, ensuring your assets aren’t subject to estate taxes. Any assets in an irrevocable trust are protected from legal judgments and creditors IF you do it correctly and in the proper jurisdiction. Don’t go at this one alone. But if it’s something you are interested in, contact us and let’s talk. In the video, Ice jokes about putting his classic car collection into a trust and setting rules, such as his kids can lease but not sell the cars. This protection ensures your heirs benefit from it, but don’t squander the assets. In other words, even after death, you can determine how your assets will be used. And if you want to protect them for future generations, you can. This is one way to create generational wealth.
So now we’re up to our third lesson: If you want to protect and preserve your assets for generations, take Vanilla Ice’s advice and utilize trusts in your planning.
While trusts can undoubtedly be a valuable tool in estate planning, Ice has some, let’s say, not-so-nice things to say about some lawyers who draft trusts for their clients. He calls them “vultures.” Yikes. One commenter couldn’t resist throwing in a lawyer joke, saying, “What do you call…1,000 lawyers @ the bottom of the sea? A good start.”
I’ve heard all the lawyer jokes out there, and I’ll say this. They wouldn’t be “jokes” if people didn’t find them funny. And people find them funny because there’s some truth in them. Sadly, lots of people have had a bad experience with a lawyer in the past.
Ice aptly describes a lousy experience: the lawyer confusing you using complex language and legal concepts, selling you documents you don’t need, and charging too much for what the lawyer offers. He warns against unquestioningly trusting lawyers like this.
And he’s right.
It is precisely why I have the processes in place that I have. My Life & Legacy Planning process has been developed precisely to ensure you are well-counseled to understand all your decisions; we never put in place documents that we know are likely to fail and that you choose your own fees through our education process.
Our education first process is designed so you understand enough about how the law works in your unique situation so that you can make wise choices and be your own best advisor first and foremost. Our pricing model is all flat fee, agreed to in advance, no gimmicks, no surprises, and all chosen by you. No tricking you with fancy legal language and then charging you an arm and a leg for something you don’t need - or even want.
This brings us to our fourth and final lesson: hire a trustworthy lawyer to be there for you and your family for life and beyond.
Vanilla Ice’s video brings forward lessons everyone can benefit from. By understanding your options, including how taxes and life insurance impact your family and assets specifically, and considering using well-counseled trusts, you can safeguard your assets and ensure they benefit your loved ones the way you want. To quote his classic hit, “Ice Ice Baby,” ‘Anything less than the best is a felony.’ Take these lessons from Vanilla Ice to heart, and start building a solid estate plan today. Your future generations will thank you for it.
As a Personal Family Lawyer Firm, we help you create a Life & Legacy Plan rooted in education and clarity so your loved ones stay out of court and conflict and your assets are protected. And once we’ve created your plan, you can rest easy knowing you’ve done the right things for the people you love most—word to your mother.
Book a complimentary 15-minute Discovery Call to learn more.
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Austin, TX 78738
