The Oscar-winning actor was found dead on August 11 in what
police are calling an apparent suicide. The 63-year-old had battled substance
abuse problems for decades and had recently checked into a rehab facility.
Robin Williams was a world-class comic who made millions and
tried to take good financial care of his children, yet his estate planning
talents may have not matched his comedic genius. Experts say it’s quite
possible that Williams did not leave a will—though that may not be a bad
thing.
Daniel Rubin, a partner at Moses & Singer
specializing in trusts and estates, explained it’s very likely Williams used a
revocable trust because the probate process tends to be a lengthy one in
California, wealthy people there—and elsewhere—often opt to create a revocable
living trust instead of a will. They make themselves the trustee, and in the
trust documents indicate how they want their assets distributed. Then when they
die, the assets are allocated without any public review.
Williams did leave money in a trust for his three children.
But experts say the trust, or trusts, could have been structured much more
effectively. The trust assets were reported to be structured so they would be
distributed to Williams' children in three increments: at age 21, 25, and 30.
But experts say those may not be the optimal times for the kids to receive
large sums of money.
Many wealthy people worry that leaving too much
money to children at a relatively young age will destroy their motivation, or
worse. There are other concerns with fixed distribution times. What if a child
is getting divorced at 30, and suddenly comes into substantial assets that then
have to be divided? Or what if a child is at risk for a lawsuit, and losing
would mean handing over the assets?
The more modern way of structuring a trust for children is
to give them responsibility for appointing the trustee at a certain age. That
way they can, if they choose, appoint someone who will let them draw down assets—or
they can choose to leave the assets in the trust, where they are not vulnerable
to a lawsuit or a divorce settlement.
Estimates of the value of Williams' estate vary widely. He
said in a 2013 interview that he was selling his Napa estate because
he couldn't afford it anymore, and he was returning to television work for the
money.
Still, the website celebritynetworth.com pegs his
net worth at $50 million, and Williams' Napa ranch is currently on the market
for $29.9 million. Odds are, with assets like that, Williams' children can
expect a large amount of money to flow their way. It just may not arrive when
they want it.
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