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. Kobe’s survived by his wife Vanessa and three other daughters: Natalia, 17, Bianka, 3, and Capri, 7 months. The exact cause of the crash remains under investigation.
Kobe’s sudden
death at age 41 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.
While it’s too early to know the exact details of Kobe’s estate plan (and he very
well may have planning vehicles in place to keep the public from ever knowing
the full details), we can still learn from the issues his family and estate are
likely to face in the aftermath of his death. I’m covering these issues in
hopes that it will inspire you to remember that life is not guaranteed, every
day is a gift, 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.
Given his business acumen and length of time in the spotlight, it’s highly unlikely Kobe died without at least some 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.
For example, due to his extreme wealth, Kobe likely created trusts and other planning strategies to remove some of his assets from his estate in order to reduce his federal estate-tax liability. However, because he was so young and still actively involved in numerous business ventures, it’s quite unlikely that all—or even the majority—of his assets had been fully transferred into those protective planning vehicles.
And seeing that Kobe owned the helicopter and the weather at the time was poor (many other flights had already been grounded), there’s also the real potential that the families of those killed in the crash will file civil lawsuits against his estate. Regardless of how extensive Kobe’s estate plan is, it’s doubtful that the lawyers who drafted his plan considered the possibility of so many potential wrongful-death lawsuits.
Here’s the bottom
line: the post-death handling of Kobe’s affairs is surely going to be
complicated. 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, probably 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 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, especially while she’s mourning the loss
of both her husband and child, as well as parenting three other daughters
who’ve just lost their father and sister. Given the vast scope of Kobe’s estate,
ongoing business ventures, and likelihood of lawsuits and other legal
complications, Vanessa will need the advice and support of her trusted counsel
now more than ever. And I do hope she has that support, and that it was
established well before this point in time.
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. Though we can’t know
if this was the case with Kobe’s lawyers, such situations occur frequently
enough that there’s a real possibility this could be true for Vanessa as well.
Don’t let such a scenario be true for your family. There is immense value in not only getting your estate planning handled now, but also in accomplishing that with a family-centered law firm as your partner.
Dedicated to empowering your family, building your wealth and defining your legacy,
