As you’ve probably seen in the news, Oscar-winning actor Gene Hackman and his wife both died recently, and there are financial implications for his children. This article explains what their situation means to you…

You may have seen the recently reported case relating to the Hollywood actor Gene Hackman and his wife, Betsy Arakawa, who were both found dead at their Santa Fe home on 28 February. It highlights the issues that can arise when tragedy befalls a family. It’s critical to know who died first, not only from an inheritance tax point of view, but also to identify which spouse’s Will deals with which assets.

It has been reported that Gene Hackman died aged 95, of severe heart disease and advanced Alzheimers. It’s also been reported that, in his Will dated 1995 and updated in 2005, he left his entire estate worth $80m (£62m) to his wife, and nothing to his children. He had three children with his late ex-wife, Faye Maltese.

It was found that Betsy had died the week before her husband, after contracting a rare virus.

Therefore the Estate will not pass to his late wife. In the absence of a clause stating what happens if an intended beneficiary died before the deceased, what will happen is uncertain and his intentions may not be honoured. 

Expert Will drafters will advise you to make provision for such circumstances. 

In Betsy’s Will, she left all her assets to her husband, with the proviso that if they died within 90 days of each other, her estate would go to a Trust and, after covering medical expenses, be donated to charity.

Therefore her Will did make such provision – but having died first she will not inherit his estate.

From a legal perspective, it will be interesting to see what happens next.

What this means to you

It’s really important to make a Will while you’re fit and well, so your wishes can be respected after you die.

It’s also important to update your Will whenever circumstances change for you and your beneficiaries.

It’s common for married couples and civil partners to make reciprocal Wills, that is, where the first one to die leaves everything to the other, or where they both leave everything in equal shares to their children. However, it is just as important to make provision as to what is to happen if one or more of your beneficiaries were to die before you so that your wishes can be followed by your Executors. 

We will make recommendations based on your circumstances and, where necessary, put contingency plans in place, just in case tragedy occurs and your loved ones die before you.

Without such a clause, your estate will be distributed as though you died without having a valid Will at all (also known as dying intestate). And then, if there are no surviving relatives under the Intestacy rules, your estate passes to the Crown.

Next steps

Our offices in Wales may be a long way from Hollywood, but we can ensure that your wishes are carried out and that your wealth passes to the beneficiaries of your choice, while also assisting you with minimising the amount of inheritance tax that’s due.

If you have any questions or you’d like to write or review your Will and Trust/s, please contact Rhian, or read our page on Wills, Trusts & Tax planning.