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His Prerogative

nick gordon A Bobbi Kristina Brown update. An Atlanta judge ruled two weeks ago that Nick Gordon, the boyfriend of Bobbi Kristina Brown, is liable for $36 million in damagesto her estate and to her father, Bobby Brown, for allegedly causing her death by providing her the drugs in her body at the time of her death and for assaulting her. The judge determined the amount of damages after Gordon stopped appearing in the case a year ago and the estate was awarded a default judgment (because Gordon stopped participating in the case) in September.

Only two points:

1. Gordon does not have the funds to pay the judgment and will likely declare bankruptcy to avoid paying them.

2. There is no word on when Bobby Brown will be held liable for providing drugs to, and ruining the career of, Whitney Houston.

She Didn’t Know

As news breaks that Bobbi Kristina Brown will be  moved to a long term care facility, one wonders what will become of her estate.  Or at least those of us in the estate planning field wonder.  Her mother, Whitney Houston, left her reportedly $20 million estate in trust for Bobbi Kristina per the terms of her 1993 will.   Bobbi Kristina should have received 10% of that on her 21st birthday last year under the terms of the trust.  Bobbi Kristina’s assets will go to her closest living relatives i.e. her father, Bobby Brown.  The remaining 90% of the trust will be distributed per the terms of Whitney’s will which means to her mother and her two brothers.  Bobby Brown was also listed as a trust beneficiary, as was her father who died in 2003, but is precluded from inheriting from Whitney due to their 2007 divorce.

Several points:

1.   Whitney should have updated her will multiple times – as her daughter aged, after the death of her father in 2003, and after her divorce in 2007.

2.  Distributing trust assets to a child at the age of 21 is a bad idea.  I never draft a trust that permits a distribution prior to age 25.  I also have a clause prohibiting distributions to beneficiaries suffering from drug use, alcohol abuse, or a gambling problem.

3.  Recreational drug use is expensive.  In an age where Lou Reed’s estate was valued at $20 million primarily based on one song (“Walk on the Wild Side”), a $20 million estate seems small for an artist of Whitney’s stature recording in an era of larger royalties and multi-platinum CDs, with a film career to boot. Not that Lou Reed did not do drugs.

 

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All Posts By Jay Brinker

I am an attorney located in Cincinnati, Ohio who practices in the areas of estate planning, probate, asset protection, and small business advice. I make a difficult and bewildering process as simple as possible. Most importantly, I provide "more for less" for my clients.