3 Financial Missteps Celebrities Make at the End of Life—and How You Can Steer Clear of Them

The late singer Aaron Carter, who died unexpectedly in 2022, left behind a complex situation due to the absence of a will. At the time of his passing, he had an infant son and was engaged, which made the lack of a clear estate plan particularly troublesome.

According to California law, an unmarried individual with children who dies without a will typically has their child named as the sole heir. However, since Carter’s son was still a minor, the courts had to intervene. “Without a will or a trust, the court was required to appoint someone to manage his estate,” explains Zach Wiegand, an attorney specializing in estate planning. “This may not have aligned with Carter’s wishes.”

Practical Advice: Establishing even a basic will is essential, particularly if you possess assets, have dependents, or want to ensure that specific individuals inherit your belongings. Moreover, creating a trust can streamline asset transfer posthumously and help avoid court involvement, making the process much more straightforward.

The case of NBA superstar Kobe Bryant underscores the necessity of keeping estate plans current. Bryant tragically passed away in 2020, shortly after the birth of his daughter, Capri. However, because his estate documents were not updated, Capri was initially left out of his will, forcing his wife, Vanessa, to seek court permission to amend the trust.

“Kobe serves as a cautionary tale,” notes Eido Walny, an estate attorney. “It’s vital to promptly include any newly born children in your estate planning documents.”

Practical Advice: After any major life event—such as welcoming a child, entering a marriage, or experiencing a divorce—it’s crucial to revisit and revise your estate documentation. Regular updates ensure your wishes align with your current life circumstances and can mitigate potential conflicts.

Actor James Gandolfini’s estate faced significant tax complications due to insufficient tax planning. Following his death in 2013, his estate was hit with an estimated $30 million in taxes because Gandolfini failed to utilize available tax-saving tools.

As of 2025, individuals can pass on a substantial sum of $13.99 million tax-free, with amounts exceeding that threshold subject to taxation up to 40%. Gandolfini’s will distributed a considerable portion of his assets to friends and family, leading to unexpected tax liabilities that could have been mitigated with proper planning.

Practical Advice: To lessen potential tax burdens, estate planning should include strategies like establishing trusts and consulting with tax professionals. This proactive approach can significantly alleviate financial stress for your heirs.

Ultimately, estate planning is crucial for everyone—not just celebrities. It is a common misconception that estate planning is only relevant for the affluent or elderly. In reality, having a robust plan is beneficial for individuals across all income brackets and ages.