Making sure you have everything in order is of the utmost importance
As you no doubt already know, on January 26, 2020, basketball legend Kobe Bryant was killed in a helicopter crash on a wooded hillside 30 miles north of Los Angeles. Also killed in the tragic accident was his 13-year-old daughter Gianna, and seven other passengers, who were friends and colleagues of Kobe and his family. The cause of the crash has been determined by the NTSB to be pilot error. The findings were that the pilot became disoriented after flying into low clouds and in an effort to get above the clouds he mistakenly flew the helicopter into the hillside.
The 41-year-old former Los Angeles Laker was flying to Mamba Sports Academy, a youth sports center Kobe founded in Thousand Oaks, where his daughter Gianna was set to play in a basketball tournament. Fortunately, none of Kobe’s other family members were on the flight, and he’s survived by his wife Vanessa and three other daughters: Natalia, 18, Bianka, 5, and Capri, 2.
Kobe’s sudden death at such a young age has led to a huge outpouring of grief from fans across the world. Whenever someone so beloved dies so young, it highlights just how critical it is for every adult—but especially those with young children—to create an estate plan to ensure their loved ones are properly protected and provided for when they die or in the event of their incapacity.
Due to the planning vehicles in place, the public may never know the full details of Kobe Bryant’s estate but, we can still learn from the issues his family and estate may face in the aftermath of his death. We cover these issues in hopes that it will inspire you to remember that life is not guaranteed, death can come at any moment, and your loved ones are counting on you to do the right thing for them now.
Kobe’s Sports and Business Empire
Between his salary and endorsements during his 20-year career with the L.A. Lakers, Kobe earned an estimated $680 million. And that’s not counting the money he made from his numerous business ventures, licensing rights for his likeness, and extensive venture capital investments following his retirement from the NBA. That said, by all estimates, his estate has the potential to be the most valuable of any modern athlete. His estate will be receiving even more money due to a $6 million investment Bryant made in 2014. He owned 10% of a company that was sold to Coca-Cola which made his estate $400 million in return.
Thankfully Kobe died with planning in place to protect his assets and his family. But even if Kobe did have a plan, when someone so young, wealthy, and successful passes away this unexpectedly in such a terrible accident, his family and estate will almost certainly face some potential threats and complications. One of which being the fact that his youngest daughter was left out of the family trust.
Though you almost certainly don’t have a Kobe-size estate to pass on, that makes it even more important for you to handle your planning—and really get it done right. Kobe’s family can afford years in court, lawyers upon lawyers, and a loss of some assets to taxes and lawsuits. Your family, on the other hand, cannot.
Trusted support when it’s needed most
Since Kobe’s wife Vanessa survives him, and it’s been widely reported that they married without a prenuptial agreement, it’s most likely that she will inherit everything. And due to the “spousal exemption,” those assets will pass to her tax free. Yet despite the protection from estate taxes, if she does inherit everything directly, all of the estate-planning, financial-planning, business-management, and wealth-preservation responsibilities for Kobe’s immense fortune will now pass to Vanessa.
That’s an overwhelming responsibility to suddenly have to take on, especially while she’s mourning the loss of both her husband and child, as well as raising Kobe’s three other daughters. Given the vast scope of Kobe’s estate, ongoing business ventures, Vanessa will need the advice and support of her trusted counsel now more than ever. And we sure do hope she has that support, and that it was established well before this point in time.
While it does seem that Vanessa does have the support that she needs from Kobe’s estate planning attorneys and co-trustee, unfortunately, many estate planning firms do not engage with the whole family when creating estate plans and the associated legal documents, leaving the spouse and other family members largely out of the loop.
This could be true for you and your family. Are you in the loop on the planning that’s been handled (or not) for your parents? Are the people you’ve named in your plan or who you would want handling things for you when needed fully up to date and in the know about your planning?
This scenario highlights the immense value of working with family-centered planning lawyers like us. We take the time to get to know your family members and include them in the planning process. We can even facilitate regular family meetings to keep everyone up to date, as your family dynamics and planning strategies evolve and change over the years.
While the death of Kobe, his daughter and the others is terribly sad, if it motivates you to get your estate planning handled the right way, or updated, the tragedy just might have some positive impact. In fact, this task is so urgent, we’ve created a unique (and totally FREE) tool called a Personal Resource Map. This amazing resource will help you get the inventory process started right now, by yourself, without the need for a lawyer. We will help you create an inventory of everything you own to ensure your loved one’s know what you have, where it is, and how to access it if something happens to you. Whether you already have a plan created or nothing at all, meet with us to learn about the specific planning strategies necessary to protect your loved ones and their inheritance if and when something equally tragic happens to you.
This article is a service of Fleurinord Law, PLLC. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.