The recent deaths of actor Gene Hackman and his wife, Betsy Arakawa, highlight just how important it is to have a well-thought-out plan for what happens when you pass away. While the Hackmans had estate plans in place, their situation still raises key issues that many couples and families overlook – especially when it comes to planning for what happens if both spouses die around the same time.
Whether you have a lot of assets or just want to make sure your wishes are honored and your loved ones aren’t left with a mess, a well-structured plan is essential. I call this approach Life & Legacy Planning – a process that goes beyond simply drafting legal documents and ensures your plan actually works when your family needs it most.
What Happened with Gene Hackman’s Estate
Gene Hackman, known for iconic films like The French Connection and Unforgiven, died just a week after his wife, Betsy Arakawa. Their estate plans, created in 2005, left everything to one another. Hackman named Betsy as the person to manage his estate and receive all his assets. Likewise, Betsy’s plan named Gene as the primary beneficiary.
But since they died so close together, this created a tricky situation. Fortunately, they had backup people named to manage their estates. A professional named Julia L. Peters is now in charge, since the original backup person they had also passed away.
Why This Matters to You
Most couples do exactly what the Hackmans did – they name each other as the main beneficiary on everything. But few think about what happens if they die at the same time or within a few days of each other. This can create confusion, delays, and even court battles. Naming backup (or “contingent”) beneficiaries for everything – wills, trusts, retirement accounts, life insurance – is a key part of solid planning.
In Betsy’s case, she included a smart clause: if she and Gene died within 90 days of each other, her assets would go to a charitable trust. This is especially important since she had no children of her own. But in blended families, like Gene’s, things can get complicated. Gene had three children from a previous marriage. If Betsy’s assets skip Gene and go directly to the trust, his kids might end up with nothing from her estate.
The Importance of a Plan That Works
One of the biggest issues with the Hackmans’ plan? Their documents were nearly 20 years old. That’s a long time, and a lot can change – laws, family dynamics, financial situations. If your estate plan isn’t kept up to date, it may not reflect your current wishes or protect your loved ones the way you intend.
That’s why I use the Life & Legacy Planning process. It’s designed to ensure your plan is not only created properly but stays current over time. We look at your full life picture – your assets, your loved ones, your values—and make sure everything is aligned and legally sound.
Key Strategies I Use to Avoid Problems Like These:
- Always Name Backup Beneficiaries
It’s not enough to name just one person. I help you list backups for all key roles and accounts. - Include “Simultaneous Death” Provisions
We’ll address what happens if you and your spouse (or any beneficiary) die close together—so there’s no uncertainty. - Use a Living Trust
A revocable living trust can keep your affairs private, help your family avoid court, and provide more control over how your assets are distributed. - Customize for Blended Families
If you have a blended family, we’ll make sure no one is accidentally left out or disinherited. - Review Your Plan Regularly
Your plan should be reviewed at least every 3 years, or whenever there’s a major life event—like a birth, death, marriage, divorce, or big financial change.
Next Steps
Having a plan is great. Having the right plan that gets updated regularly is even better. You don’t want your loved ones to deal with confusion or court battles at an already difficult time.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.