Transcript of Podcast Episode 248
Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, Finally: Aretha Franklin’s Estate is Finally Resolved.
It took five years and a jury trial to decide, but the drama over Aretha Franklin’s will appears to be over. It took that long to figure out whether Franklin died intestate, that is, without a will, or not.
We first discussed this case back in 2019. The “Queen of Soul” passed away in August 2018 with an estate estimated at $80 million. Much of the estate’s value came from ongoing earnings on her music, licensing, and royalties.[1]
At the time, it was believed that she died without having a valid will or trust in place. But the story took an unexpected turn. A few months later, not one, but two handwritten documents were discovered in her home. It would end up turning her sons against each other.
The first one, written in 2010, was found in a locked cabinet, was signed on every page and notarized. The second, written in 2014, was found between her couch cushions. It was only signed on the last page and was not notarized.[2]
Neither document had the formalities that are normally associated with a written and properly documented will. Neither document had any witnesses. So, the question came down to whether either, or both, documents constituted what is known as a “holographic will.”
The term holographic will sounds like something out of science fiction, but it doesn’t use any technology at all. It’s all pen and paper. It is a handwritten and unwitnessed will. And it’s a mystery where the name actually comes from.
Holographic wills are subject to different requirements in different states. Not all states even recognize them. Some states require that the entire will be in the author’s handwriting, while others only require that the material provisions—such as who is to receive the property—be in the author’s handwriting.
Assuming a holographic will is permissible under state law, in most cases it will only be valid if the author states his or her intent to make this their formal will (as opposed to a set of handwritten notes). They must also clearly describe the assets covered and identify the beneficiaries to whom they are giving those assets. And finally, the holographic will must also be signed by the author, and in some states, it must be dated as well.
Legal experts have pointed out that one of the biggest issues with holographic wills is that they are exposed to potential fraud because they normally don’t require witnesses or a notary.
A holographic will can cause headaches for the people left behind. Aretha’s children now know this firsthand. The preferred choice is to use an estate planning attorney to put together your will that conforms to the laws of the state where you live. If you want to make sure your assets are handled according to your wishes, that would likely be the best bet.
For Franklin, the question was whether either, or both, documents were legally binding as holographic wills. If they are, the more recent one would apply. Both documents split the value of Aretha’s intellectual property between her four sons, one of whom has special needs. Both versions also allow the four sons to benefit from her music royalties and copyrights.
But there were some notable differences between the two. The 2010 document appointed her son Ted White II as a co-executor of his mother’s estate, while the 2014 document named her oldest son Kecalf Franklin, and Franklin’s niece Sabrina Owens, as co-executors. The later document also leaves her home and cars to Kecalf and his children.
In July, the court decided that yes, the 2014 handwritten note is, in fact, a holographic will. The situation has been resolved, at least for now, but not without family strife and some large legal bills. And much of it could have been avoided if Aretha had worked with an estate planning attorney to properly documented her wishes.
What is certain is that Franklin should have followed her own musical advice and taken some time to “think.” Think about her privacy, her estate, and what she wanted to leave to whom and when.
[1] Wood, Robert W. “Aretha Franklin Estate Settles IRS Tax Claims.” Forbes.com
https://www.forbes.com/sites/robertwood/2022/07/14/aretha-franklin-estate-settles-irs-tax-claims/?sh=6d4c1dd12f05. Accessed August 14, 2023.
[2] Sulkin, Anna. “Aretha Franklin’s Will Drama Is Over” wealthmanagement.com
https://www.wealthmanagement.com/estate-planning/aretha-franklins-will-drama-over?NL=WM-27&Issue=WM-27_20230717_WM-27_781&sfvc4enews=42&cl=article_1_b&utm_rid=CPG09000007289133&utm_campaign=43401&utm_medium=email&elq2=9ffd8370fef84691972755d378011fce&oly_enc_id=0906G4469178C2U&sp_eh=e38021e391e487f91ac04b2444f3959990701bef0e3ac2b2ecc63d78be83a570. Accessed August 14, 2023.
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