With proper planning, O.J. could have saved more money.
O.J. Simpson has captured the media attention for years.
Let us be honest.
He is not known for his great decision-making.
Apparently, his financial decisions could also be better, according to a recent Wealth Advisor’s article titled “The Juice Is Loose, Did O.J.'s Kids Hide Millions From Murder Families?.
Is he destitute?
He will likely still live a comfortable life in retirement.
Still, choices he made over the years did cost him.
What were they?
First, he did not make a prenuptial agreement.
This alone cost him $2 million in child support and cash in the divorce settlement.
Second, the murder scandal cost him in endorsements and appearances.
In addition to lost endorsements, the families of the victims brought civil suits.
These alone endangered $33 million of his future earnings and assets.
What did he do to help offset these cost?
He entered into shady memorabilia sales.
He landed in jail.
Still, his children were allowed to cash the checks to make payments on the home his lawyers purchased for him in Florida.
Except they did not make those payments.
They used the money instead.
In the end, the home was foreclosed.
Recently, his children purchased $500,000 in investment property in St. Petersburg.
Was this his money?
If it was a documented gift, then the families cannot claim being cheated.
What should O.J. have done instead?
Oh, where should I begin?
Since this is an "estate planning" blog, we will stick to that focus.
He should have begun his estate planning early.
This would have allowed him to protect his $10 million from creditors.
With enough time, he could have created a trust.
But there was no time.
Instead his lawyers were forced to move $4 million to ERISA-protected retirement accounts and move his residence to Florida to allow him to keep a home, even if bankrupt.
Unfortunately for him, he still lost the house.
Do not look to O.J. for estate planning ... or relationship advice.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Wealth Advisor (August 6, 2017) “The Juice Is Loose, Did O.J.'s Kids Hide Millions From Murder Families?”