The actor's plan was also not ideally suited for his unique situation. Hoffman accumulated an estate of around $35 million. Hoffman and his partner, Mimi O'Donnell, shared a long-term relationship, including having 3 children together, but they never married. In his will, the actor left his estate outright to O'Donnell. Choosing this technique creates many potential problems for O'Donnell. The sum she will receive will be dramatically reduced because that $35 million inheritance will trigger a huge tax bill. Additionally, that inheritance is also exposed to any creditors O'Donnell might have. Creating a trust for the benefit of O'Donnell and/or the children could potentially have significantly reduced or eliminated the tax obligation and/or the potential exposure to creditors.
This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com.