Overcome Your Legal Obstacles
Learn More
"I help my clients improve their situations, take care of their families and overcome the obstacles that keep them from living better lives." - Justin C. Miller Esq.

How Hugh Hefner did estate planning right

There may not be many Ohio residents who viewed Hugh Hefner as a role model in life. However, he may have been a perfect example of how to create a proper estate plan. In 2010, it was revealed that he had a net worth of $43 in addition to the value of his Playboy real estate and stock holdings. In 2011, that stock was purchased for $207 million.

Hefner retained a 37-percent stake in the company in addition to a contract that paid him $1 million per year. When he married his third wife in 2012, he created a prenuptial agreement that gave her $5 million in addition to a house that was worth $5 million. The rest of his money was split between his four children and charitable donations to entities such as the University of California film school.

However, most of Hefner's money was tied up in the 37-percent stake in Playboy Enterprises. To actually see that money, the stake may need to be sold back to the private equity company that owns the rest of the company. Furthermore, the lack of a market for those shares could make coming to a valuation tricky. Although he didn't own the Playboy Mansion when he died, he was allowed to live in it almost for free.

The use of wills or trusts may make it easier to retain control over where money or other assets go after passing. Valuing assets prior to passing may also make it easier for heirs to determine how much their inheritance may be worth. It may also make it easier to determine how much assets are worth for tax purposes. An attorney may be able to help an individual create an estate plan that may meet his or her needs.

No Comments

Leave a comment
Comment Information
We Will Answer Your Questions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy