“Rapper Nipsey Hussle was gunned down outside his L.A. store on Sunday, March 31. He is survived by his two minor children and longtime girlfriend Lauren London. Assuming that Hussle died without an estate plan, all his assets would pass to his children in equal shares, since he was not married at the time of his death.”
This raises significant issues, because minors can’t own more than a certain amount of assets, explains Rolling Out in the recent article, “RIP Nipsey Hussle: 5 reasons you need an estate plan.”
This means that a guardian or trustee must be appointed to manage the funds for them, until they reach the age of majority. If the deceased doesn’t have a will that instructs who that guardian shall be, they will be chosen by the court. In this case, Nipsey’s longtime girlfriend Lauren London would get nothing from Hussle’s estate (even though that may not have been his intention), because it looks like she wasn’t his spouse or an heir. Consider these important reasons for an estate plan:
Property transfer wishes. This is the primary objective of estate planning. Your estate consists of all your property (real, personal, and intellectual) minus your debts. Your estate plan will determine who gets what and when. Create clear goals, as to who should inherit your property and alternative beneficiaries, in case someone predeceases you.
Transfer costs and taxes. Another goal of estate planning is maximizing any available tax benefits. You can limit estate taxes by creating trusts, making charitable donations and by establishing a family limited partnership for a business.
More net assets to heirs. An estate plan will help avoid the expense and delays of probate.
Liquidity at death. Funds need to be available to satisfy the immediate needs of the family. This can be accomplished with life insurance policies, IRAs, stocks and bonds. If all of your property is being transferred by will or intestate succession, no one gets anything, until the estate is probated.
Personal wishes surrounding death. Write down all of your preferences concerning burial, cremation, and organ donation to help your family.
Hopefully Hussle created an estate plan, so his family doesn’t have to grieve his death, while figuring out his personal, business and family matters.
Reference: Rolling Out (April 1, 2019) “RIP Nipsey Hussle: 5 reasons you need an estate plan”