Philip Seymour Hoffman (1967-2014) – Actor
Philip Seymour Hoffman’s death was a tragedy. For his loved ones, the pain resulting from his tragic, sudden death was amplified when his long-term partner and their three children found out what the estate plan entailed.
The 46-year-old actor’s estate was reportedly worth $25 million. He and his partner of 15 years, Mimi O’Donnell, had three children together. They never married, and Hoffman last updated his estate plan in 2004. At the time, he and O’Donnell only had one child, so at the time of his death, their other two children were not part of his will. Hoffman provided a trust for his eldest child, and left the rest of his estate to O’Donnell. Unfortunately, since Hoffman and O’Donnell were not married, O’Donnell’s share did not qualify for the unlimited marital deduction, and the remainder of her share will be subject to tax rates of 40 percent. If the couple had married, O’Donnell rather than the IRS, would have received up to $12 million more.
Philip Hoffman was a world renown actor, but even successful actors fail to properly plan their estate. If you want to minimize your estate planning taxes and/or avoid the probate process, then contact The Mendel Law Firm, L.P. for a free consultation on estate planning, trust planning, and/or probate issues.