Kobe Bryant’s Estate Battles

Learn important estate planning lessons from the aftermath of Kobe Bryant's tragic death. This article discusses the importance of clear family roles and up-to-date estate documents to prevent legal issues and emotional pain for your loved ones. Secure your legacy today.

On January 26, 2020, the world was shocked to learn of the passing of Kobe Bryant.

The NBA legend was 41 years old. He was young and healthy. He’d recently wrapped up a professional basketball career that spanned 20 years.

During that time, Kobe won 5 NBA championships, was an 18-time All-Star, a 15-time member of the All-NBA Team and a 12-time member of the All-Defensive Team. At the time of retirement, Kobe ranked fourth in all-time regular season and postseason scoring.

Then, tragedy struck. Kobe and his 13-year-old daughter died in a helicopter accident. Their passing not only effected his family and surprised those who’d watched him play, but also led to lengthy legal battles over the events of his passing and the status of his estate. Today, we’re going to look at the aftermath of Kobe’s passing to see what estate planning lessons we can learn from this situation.

The Events That Followed

The sudden and tragic death of Kobe opened the door for a series of legal battles.

Kobe’s widow was faced with four separate legal challenges:

• Unauthorized photos. Kobe’s widow filed suit against the Los Angeles County Police and Fire Department, claiming members of these two departments took unauthorized photographs at the crash site and showed them to others.
• Wrongful death. Kobe’s widow further filed suit against Island Express Helicopters, the company that owned and operated the vehicle when it crashed. Her claim alleged millions in lost income due to Kobe’s wrongful death.
• Unpaid nanny. Kobe’s mother-in-law filed a claim against the estate alleging she’d worked as an unpaid nanny and assistant for the family. She further alleged that Kobe had promised to look after her.
• Trust beneficiaries. Kobe’s youngest daughter was 7 months old at the time of the accident. She had not been added to the family trust. Kobe’s widow had to petition the Los Angeles court to allow an amendment to the trust.

These legal challenges took years to resolve.

Kobe Bryant's Estate

At the time of his passing, Kobe’s estate was estimated at $600 million.

To manage this estate, Kobe and his wife established a trust. The trust named his wife as a beneficiary. And, as each of Kobe’s first three children were born, their names were added as beneficiaries as well.

The trust was designed to allow Kobe’s wife to draw from the assets to provide for the family, with the remaining funds going to his children upon his wife’s death.

From all outside appearances, the trust appears to have been well-designed. However, it had not been fully updated to include their youngest daughter at the time of Kobe’s passing.

Lessons Learned

Kobe Bryant’s situation is more common than you might think. While the Bryants took steps to protect the estate and minimize emotional strain, two key oversights led to legal consequences.

Clear Roles and Financial Expectations

The first lesson to take away from this tragedy is the importance of establishing clear roles and financial expectations with family members. Whether a family member is cleaning your house, taking care of your children or managing your household budget, do not assume they are performing these tasks without compensation.

For example, Kobe’s mother-in-law filed suit against her. Her claim was based on an unestablished role in the house and alleged statements made by Kobe.

While setting roles and expectations with close family members may be difficult, the alternative can be much more challenging.

Consider:   

• Naming any in-home roles. Where family members are involved in regular care of children or household management, define the role they’re playing. Discuss with them expectations, payment and any future consideration.
• Documenting promises. If you want to care for an extended family member, put your promises in writing. Outline the type of care you want to provide, the timeline for providing this care and the compensation expected in return.

Together, these actions can help you avoid confusion or claims.

Updating Estate Documents

The second lesson is the need to update your estate documents.

Sadly, fatal accidents cut far too many lives short. Each year in the United States alone, fatal accidents account for more than 135,000 deaths. And, in the face of a sudden tragedy, even the best estate plan can struggle if it hasn’t been updated.

Consider:

• Establishing annual review. Meet with your estate team once a year to discuss your life        circumstances and any logical updates to your documentation. Make sure you’re sharing key details that may impact your wishes.
• Watching for major events. There are a handful of life events that require immediate action. As seen in the aftermath of Kobe’s passing, adding newborn children to an estate plan right away is critical. Other major events include marriage or divorce, significant sale of assets and a change in health condition.
• Including a provision in your estate planning documents. If your will or trust specifically identifies your children by name, be sure it includes language that will automatically include later-born children who aren’t specifically named in the document.

Minimize the Pain for Your Loved Ones

There’s no way around it— a tragic accident can be crushing.

Protect your family from lengthy legal battles by consulting with a strong estate planning team.

Work with the estate planning advisors at Comerica. Our knowledgeable advisors can help you create estate documents that save your family time, money and emotional strain. Contact your Comerica Relationship Manager or contact Comerica today.