Lessons from Larry King’s Estate: The Importance of a Sound Estate Plan

The recent dispute over the late Larry King’s estate highlights what can happen when a person makes major changes late in life, particularly if their health has declined. Many people, as they age, want to adjust their estate plans to reflect changes in relationships and personal circumstances. But doing so without proper legal guidance can invite challenges, as was seen in the King estate.

What Went Wrong with Larry King’s Estate Plan?

Larry King left a handwritten will, which he reportedly created late in life. Such handwritten wills, often called “holographic wills,” are acceptable in some states if certain conditions are met. King’s holographic will was witnessed by two people, which could meet California’s probate standards. However, depending on state laws, handwritten wills may or may not be valid, and such inconsistency can lead to conflict among family members.

King’s will specified that his estimated $2 million probate estate be distributed among his children. Yet most of his assets, estimated between $50 million and $144 million, were held in trusts. As a result, these trust assets bypass the probate process and won’t be distributed based solely on his will. However, King’s situation still led to court battles, illustrating the importance of clear estate planning.

How Trusts Offer Protection Beyond Wills

Unlike wills, trusts can keep an estate’s details private and bypass probate, providing faster access to assets for loved ones. A well-prepared trust can serve as a safeguard against future legal disputes. Because King had most of his assets in trusts, only a portion of his estate was subject to probate. This arrangement is helpful for families wanting to avoid probate’s delays and fees.

In Florida, trusts are particularly beneficial due to the state’s lengthy probate process. By placing assets in a trust, families can avoid probate, ensuring privacy and faster distribution of assets.

Pre- and Post-Nuptial Agreements: The Role in Estate Planning

Pre- and post-nuptial agreements also played a part in the King estate. Although Larry King and his seventh wife, Shawn Southwick King, reportedly had no pre-nuptial agreement, rumors of a post-nuptial agreement emerged. Any such agreement could impact how his assets are divided, even if a will states otherwise. Southwick King, as a spouse, has a claim to half of the assets acquired during their marriage. In states like Florida, such community property laws and spousal rights can heavily influence estate outcomes, especially when assets are substantial.

Undue Influence and Mental Capacity Claims

Another key issue in the King estate dispute was the question of undue influence. King’s son, Larry King Jr., allegedly pressured him into creating a holographic will. Claims of undue influence are common in estate disputes, particularly when an elderly or ailing person makes late-life changes to their estate plan. In Florida, proving undue influence requires demonstrating that the person lacked mental capacity or was unduly pressured when signing the will or trust.

Key Takeaways for Estate Planning

1. Create a Trust – Establishing a trust can offer privacy, avoid probate, and keep the estate’s distribution within family control.
2. Formalize Estate Plans – A handwritten will, while sometimes valid, can lead to more disputes than a properly prepared, witnessed, and notarized document. Work with an estate attorney to ensure all documents meet state standards.
3. Consider Spousal Rights – Even when a marriage has ended, a spouse may still have claims to assets acquired during the marriage, as seen in the King estate.
4. Guard Against Undue Influence – If mental capacity or undue influence could be questioned, an attorney can help address these issues, documenting capacity and ensuring the person’s wishes are clearly recorded.

Every family’s needs are different, and Larry King’s situation underscores the importance of keeping estate plans up-to-date and in compliance with state laws.

Reference: The National Law Review (March 15, 2021) “Larry King Will Contest—Key Takeaways”