Legendary broadcaster Larry King left behind not only a storied career when he died in 2021 at age 87, but also a complex situation involving his last will and testament that offers valuable estate planning lessons for anyone considering their own legacy. With an estimated $144 million estate at stake, multiple marriages and a blended family, King's case highlights the critical importance of proper estate planning, regular updates and clear communication to avoid family disputes.
What happened to Larry King’s estate?
One of the most significant issues with Larry King's estate was the existence of multiple, conflicting wills. In October 2019, King wrote a handwritten (holographic) will that contradicted a last will and testament that was formally drafted in 2015. King penned the will a few months after he filed for divorce from his estranged wife, Shawn Southwick King.
The newer will, a sloppily written one-page document, only mentioned his five children, leaving out Southwick, who alleged King's son Larry Jr. imposed undue influence in creating the 2019 will. The formally drafted 2015 will named his wife as executor.
Southwick and King Jr. – her stepson – reached a confidential settlement in their dispute over King’s probate estate, and the bulk of his assets were held in the Larry and Shawn King Family Trust and not subject do probate, according to published reports.
What is wrong with a handwritten will?
Larry King's apparent decision to create a handwritten will, also known as a holographic will, in 2019 led to significant complications in settling his estate. While legal in some states, handwritten wills are more susceptible to challenges and often create more problems than they solve. Understanding these issues can help others avoid similar complications in their own estate planning.
What is a holographic will?
A holographic will, which is a handwritten document expressing an individual's wishes for their estate, presents numerous challenges in terms of authenticity. The handwriting must be verified by experts, signatures can be disputed and dates may be questioned – as demonstrated in King's case, where the date appeared to be written by someone else. Changes or cross-outs create ambiguity, and expert analysis is often required, adding time and expense to the probate process.
Clarity and interpretation issues plague handwritten wills. Informal language can lead to multiple interpretations, while ambiguous instructions create confusion among beneficiaries and executors. The lack of legal terminology causes uncertainty, and emotional or unclear statements complicate execution. Personal shorthand or abbreviations may be misunderstood, leading to disputes among family members.
Legal compliance presents another significant concern with holographic wills. They may not meet state-specific requirements or could be invalid in some jurisdictions. These wills might conflict with existing estate documents and may fail to account for state inheritance laws. Additionally, they often overlook mandatory legal provisions that would be standard in professionally prepared documents.
The King case highlighted specific issues with handwritten wills. Questions arose about the handwriting itself, there were issues with dating, and concerns about capacity emerged. The existence of conflicting documents and irregularities with witnesses further complicated the situation. These problems were exacerbated by family complications, including multiple marriages and divorces, children from different relationships and ongoing divorce proceedings at the time of King's death.
Professionally drafted documents created by an experienced estate planning attorney offer several advantages over handwritten wills or do-it-yourself strategies. Properly structured legal language, correct execution procedures, appropriate witnessing and clear chain of custody can help ensure the validity of a last will and testament. Professional wills provide comprehensive coverage, addressing multiple scenarios and including contingency planning. They account for changes in circumstances, coordinate with other estate documents and consider tax implications.
State compliance is another crucial aspect that professional wills address effectively. They meet local legal requirements, follow state-specific formats and include mandatory provisions. Professional wills properly address state inheritance laws and consider community property rules where applicable. This attention to legal detail helps prevent challenges and ensures the will's enforceability.
The size of King's estate made professional documentation particularly important. Complex asset structures, tax implications, business interests and multiple properties require careful consideration and precise legal language. These elements are typically better handled through professional estate planning rather than handwritten documents.
When should you update your will?
Estate planning experts recommend reviewing and updating your will at least every few years, or after any major life changes such as:
- Marriage or divorce.
- Birth or adoption of children.
- Death of beneficiaries.
- Significant changes in assets or financial situation.
- Changes in tax laws.
By keeping your will current, you can ensure it accurately reflects your wishes and family situation.
How can you avoid family disputes over your estate?
The disputes that arose between Larry King's wife and children highlight the importance of clear communication in estate planning. When intentions are not explicitly stated or documented, family members may have different interpretations of the deceased's wishes.
Here are some strategies for effective estate communication:
- Family meetings. Discuss your estate plan with beneficiaries to avoid surprises.
- Letter of instruction. Provide a detailed explanation of your wishes alongside your will.
- Health care advance directives. Clearly outline your medical preferences to avoid family conflicts.
- Regular updates. Inform beneficiaries of any significant changes to your estate plan.
What are some tips for blended family estate planning?
Larry King's multiple marriages and blended family situation created additional challenges for his estate. With eight marriages to seven different women and five children from various relationships, King's case exemplifies the complexities many modern families face in estate planning. Here are some suggestions for blended families to consider when developing an estate plan:
- Be specific about asset distribution among children and stepchildren.
- Consider using trusts to provide for current and former spouses while protecting children's inheritances.
- Clearly define the roles of executors and trustees, especially when choosing between family members.
- Update beneficiary designations on retirement accounts and life insurance policies.
Why plan for incapacity?
Questions arose about the mental capacity of King when he made his handwritten will, highlighting the need for comprehensive incapacity planning as part of estate management. The key elements of incapacity planning include a:
- Durable power of attorney. Designates someone to manage your financial affairs if you become incapacitated.
- Health care power of attorney. Appoints a person to make medical decisions on your behalf.
- Living will/advance directive. Specifies your wishes for end-of-life care.
- HIPAA authorization. Allows designated individuals to access your medical information.
What happens if a beneficiary dies before you do?
The death of a beneficiary before the testator (the person who made the will) can create significant complications in estate distribution, as demonstrated by Larry King's estate situation. When two of King's children died after he wrote his last handwritten will, but before his own death, his failure to update the will caused uncertainty about how their shares would be distributed. This scenario highlights a critical aspect of estate planning that many people overlook.
When a named beneficiary dies before the testator, two primary methods of distribution can apply: per capita or per stirpes. The choice between these methods can dramatically affect how an estate is ultimately distributed among surviving family members. Without clear specification in the will, state laws typically determine which method applies, potentially leading to results that don't align with the testator's wishes.
What is per capita distribution?
Per capita distribution, which means "by head" in Latin, treats each surviving beneficiary equally. Under this method, if a beneficiary dies before the testator, their share is divided equally among the remaining surviving beneficiaries. For example, in Larry King's case, with per capita distribution, the portions that would have gone to his deceased children would be divided equally among his three surviving children. This method can sometimes lead to unintended consequences, particularly in blended families or when there are grandchildren involved.
What is per stirpes distribution?
Per stirpes distribution, meaning "by branch" in Latin, preserves the family tree structure in asset distribution. Under this method, if a beneficiary dies before the testator, that beneficiary's share passes to their descendants. Using King's situation as an example, if his will had specified per stirpes distribution, the shares intended for his deceased children would have passed to their children (King's grandchildren), rather than being redistributed among his surviving children. This approach often better preserves family legacy and generational wealth transfer intentions.
King's situation underscores the crucial importance of clearly specifying distribution preferences in a will. Without explicit instructions, courts must rely on state default rules, which may not align with the testator's intentions. Additionally, failing to update a will after the death of a beneficiary can create uncertainty and potential family conflict over interpretation of the testator's wishes.
Conclusion
Larry King's estate situation serves as a compelling reminder of the importance of proper estate planning and the potential consequences of inadequate preparation. His case illustrates several critical lessons: the risks of handwritten wills, the importance of regular updates, the need for clear communication with family members and the complexities of blended family estate planning. The legal battles and family disputes that followed his death might have been avoided with more careful planning and professional guidance.
Whether managing a multi-million dollar estate like King's or more modest assets, these lessons apply universally. Professional estate planning guidance and clear documentation can help ensure your wishes are carried out while minimizing the potential for family conflicts. King's legacy now includes these valuable lessons in estate planning, reminding us that proper preparation and documentation are essential for protecting both assets and family relationships after we're gone.