Aretha Franklin: The Risks of Failing to Make a Will

Singer Aretha Franklin recently died of pancreatic cancer aged 76 but unfortunately died intestate, which means that she did not leave a Will.

There have been difficulties in valuing Ms Franklin’s estate as she was often paid in cash for her performances which has led to uncertainty regarding the value of her estate. It has now been valued at approximately £62 million but exact figures are unknown.

It may be that her family members and attorneys will attempt to reduce the value of her estate to limit potential inheritance tax liabilities. Inheritance tax of 40% will be due to the Internal Revenue Service in the US on any of her assets over the $11.2 million threshold. Her estate includes several Detroit properties worth more than $2 million, but not the royalties to any of her songs she did not personally write.

Ms Franklin’s estate will now be divided according to Michigan intestacy laws which means that her four sons will each inherit an equal share of her estate.

Research has shown that around 60% of people in the UK do not have a will, which means that over 31 million people risk dying intestate. 

Whilst this case is in the context of American law, it is a reminder of the importance of making a Will to provide certainty for family members and to ensure that loved ones can benefit from your estate in the way you want them to.