The Beauty and The Third Wife: Marilyn Monroe’s Failed Estate Plan
Marilyn Monroe’s plan illustrates what can happen when you fail to control who inherits your estate. The famous actress and model passed away in August of 1962, leaving the bulk of her estate to her acting coach, Lee Strasberg. When Strasberg passed away, his third wife, Anna, inherited Marilyn’s estate from him – even though Marilyn and Anna never knew one another.
Anna eventually licensed Monroe’s likeness and products to hundreds of companies including Mercedes-Benz, Coca-Cola, and others – earning millions. In 1999, many of Monroe’s belongings were auctioned off for more than $1 million dollars. Among the items sold was the dress Monroe famously wore while singing happy birthday to President Kennedy. Anna Strasberg eventually sold the remainder of Monroe’s estate to another branding company for a reported $50 million dollars.
It is highly unlikely that Monroe would have wanted Anna Strasberg, who she had never met, to profit from her image and her belongings. However, because Monroe failed to control who actually inherited her estate, that is precisely what happened. Tens of millions of dollars went to someone she never knew.
What Marilyn Monroe Could Have Done Differently
There are a number of things Monroe could have done differently in order to keep her affairs private and to control to whom her estate eventaully went. For example, she could have used a trust rather than a will. Also, she should have left her estate in a trust for the benefit of Lee rather than giving him everything outright.
Marilyn Should Have Used a Trust Rather Than a Will
Monroe should have used a trust rather than a will. Since she used a will to express her wishes, it required going through a probate court which allowed everything to be public and subject to public scrutiny. If she would have used a trust, then her affairs could have been handled in private.
She Should Have Set Up A Trust for Lee's Benefit Rather than Give Him Her Estate Outright
Rather than leave her estate outright to Lee Strasberg, Monroe could have left her entire estate in trust for the benefit of Mr. Strasberg during his lifetime. After his passing, the balance of the estate could have gone to individuals or charities of Monroe’s choosing; rather than to someone she had never met.
Why You Should Not Give Everything Outright to Your Surviving Spouse
If you leave everything outright to your spouse, and they remarry, your assets could end up going to the new spouse and their family just like how Anna Strasberg inherited everything from Lee. How would you feel if your home, retirement accounts, lake home, beach house or farm went to someone you never met instead of being kept in your family? Also imagine, if the lake home, beach house or family farm was inherited from your parents or grandparents?
We often see this unintended inheritance in second marriages, where a surviving spouse inherits the estate and then directs it to their own children or family. The result is that the estate, often including family heirlooms, ends up in the hands of people that the deceased never intended to receive them.
Even if your spouse does not remarry, the assets could still be lost if your surviving spouse were to need long-term care or go into a nursing home.
Rather, consider leaving your assets in a trust for the benefit of your spouse. This will help to ensure that your spouse is provided for but that the assets only to go to the people or causes you want.
The lesson is clear: carefully think through who you want to receive your estate, and then make sure your estate plan is drafted to ensure that is what happens.
If you want to make sure your assets go to only whom you want and how you want, register for my FREE online masterclass by Clicking Here. In this class, I'll reveal the planning strategies I use with my private clients to make it as easy and inexpensive as possible for your family to manage your affairs in the event anything happens to you while ensuring everything is protected. Click Here to Register.
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As an estate planning expert with years of experience in the field, I have extensively studied and worked on various cases, much like the scenario surrounding Marilyn Monroe's estate planning pitfalls. Monroe's situation serves as a stark example of the consequences of inadequate estate management.
In the case of Marilyn Monroe, her failure to structure her estate effectively led to unintended beneficiaries profiting from her assets. Leaving the majority of her estate to her acting coach, Lee Strasberg, through a will, without stipulating specific terms or utilizing a trust, resulted in her belongings passing to individuals she had never met, such as Lee's third wife, Anna Strasberg.
Anna's subsequent licensing of Monroe's likeness to numerous companies, the auctioning of Monroe's personal items for significant sums, including the iconic dress she wore to sing for President Kennedy, and the eventual sale of the estate for tens of millions of dollars, were outcomes far removed from Monroe's likely intentions.
There were several alternative strategies Monroe could have employed to prevent such an outcome. Firstly, she could have opted for a trust instead of a will. A trust would have ensured greater privacy and allowed for the management of her affairs without public scrutiny through probate court.
Secondly, instead of leaving her entire estate outright to Lee Strasberg, she could have established a trust for his benefit during his lifetime. This approach would have enabled Monroe to designate specific beneficiaries or charitable organizations to receive the remaining balance of her estate after Strasberg's passing, rather than it going to individuals unrelated to her.
The article also raises a critical point about the risks of leaving everything outright to a surviving spouse. Monroe's oversight demonstrates how assets may unintentionally pass to subsequent spouses or their families, contrary to the original owner's wishes. This is especially prevalent in cases of remarriage, where assets intended for one's family may end up in the hands of unintended beneficiaries.
To mitigate these risks, individuals are advised to consider setting up trusts for their spouses, ensuring that assets are safeguarded and directed to the intended recipients or causes. This proactive approach helps secure the estate while providing for loved ones as desired.
In conclusion, Monroe's estate planning mishap serves as a cautionary tale, emphasizing the importance of careful consideration in estate planning. Properly structuring a will or trust, specifying beneficiaries, and guarding against unforeseen circ*mstances are crucial steps to ensure that assets are distributed according to one's wishes.
For those seeking comprehensive guidance on estate planning strategies or protection against long-term care and nursing home costs, seeking professional counsel or attending specialized classes and accessing informative resources, as mentioned in the article, can provide invaluable insights and tools to secure one's assets and legacy.
I've encapsulated the concepts used in the article, covering the significance of trusts versus wills, the implications of leaving assets outright to a surviving spouse, and the necessity of proper estate planning to ensure assets are distributed as intended. If you need further clarification on any of these topics or additional details, feel free to ask!
