When approaching estate planning, many fail to consider that a Will alone may not be enough to ensure that their wishes are honoured in the long term. The case of Marilyn Monroe's estate highlights this crucial oversight and offers a powerful lesson about the importance of incorporating trusts when estate planning, especially when considering how you want your legacy handled long-term.
Marilyn Monroe, born Norma Jeane Mortenson, passed away at just 36 years old. Though she left behind a valid Will, the unexpected and complex outcome of her estate underscores a stark truth: without a comprehensive plan that considers the use of trusts, your legacy could be shaped by circumstances far beyond your control.
Trusts: why they matter for long-term control
Monroe left her physical belongings and 75% of her intellectual property rights to her acting coach, Lee Strasberg. Upon his death, control of Monroe's estate passed to his widow, Anna - someone Monroe likely never met. Anna took full control of Monroe's image and likeness, licensing her image and signature for millions of dollars, turning Monroe into one of the highest-earning deceased celebrities.
Had Monroe set up a trust to manage her intellectual property rights or included more detailed instructions on how she wanted her estate handled, her legacy might have taken a very different form.
Trusts provide a powerful tool for ensuring that your wealth is preserved and distributed according to your wishes, long after your death. Trusts can safeguard wealth for future generations, provide for minor or vulnerable family members, and ensure specific assets - such as intellectual property, real estate, or investments - are managed and protected. This added level of control helps ensure your legacy endures, regardless of life events or unforeseen circumstances.
Types of trusts: tailoring your legacy
There are several types of trusts that can be employed in estate planning, each with its own advantages, depending on your goals and assets. In the UK, common types of trusts include:
- Discretionary trusts: these offer flexibility in how assets are distributed, allowing trustees to decide who benefits, when they do so and to what extent, which is ideal for protecting wealth across generations.
- Bare trusts: often used for holding assets on behalf of minors, these trusts allow the beneficiary to claim ownership once they reach 18.
- Interest in possession trusts: these are useful for providing income to beneficiaries while preserving capital for future generations.
- Charitable trusts: perfect for leaving a charitable legacy, ensuring your wealth supports the causes you care about.
Each type of trust offers distinct advantages, especially when it comes to tax and estate planning. However, given the complexities of trust tax treatment, it's highly advisable to consult with a professional advisor who can help you navigate the available options and select the right type of trust for your personal circumstances and objectives.
The takeaway
The key takeaway from Monroe's estate saga is that while trusts may not be necessary for everyone, they are an important option to consider as part of estate planning. Had Monroe established a trust, her assets may have been distributed in a way more closely aligned with her wishes – whether this be to benefit family, friends, or charitable causes.
A trust allows you to protect your legacy by providing greater control over how your assets are managed and distributed. It empowers you to direct wealth not only to immediate beneficiaries, but also to future generations, charities, or organisations that matter to you - even in the face of unforeseen events or changing circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
