Estate planning is a crucial yet often overlooked aspect of personal financial management. The recent example set by the legendary singer Tina Turner highlights the importance of proactively planning for the distribution of assets and securing one’s legacy during their lifetime.
According to a report by Chron, Turner, who retired from performing in 2009, has been living in Switzerland since 1994 and became a Swiss citizen in 2013. She also renounced her U.S. citizenship and gave up her American passport.
By doing so, Turner avoided the U.S. estate tax, which can be as high as 40% for estates worth more than $11.7 million. She also avoided the U.S. income tax, which can be up to 37% for high earners.
Turner’s move may seem drastic, but it shows how she took control of her finances and planned ahead for her heirs. She also reportedly set up a trust to hold her assets and named her husband, Erwin Bach, as the trustee and beneficiary.
A trust is a legal arrangement that allows a person to transfer property to another person or entity, called a trustee, who manages it for the benefit of one or more beneficiaries. Trusts can offer various benefits, such as avoiding probate, reducing taxes, protecting assets from creditors and lawsuits, and providing privacy.
Turner is not the only celebrity who has used trusts to secure their legacy. Other examples include Prince, Michael Jackson, Whitney Houston, and Aretha Franklin.
However, estate planning is not only for the rich and famous. Anyone who has assets or dependents should consider creating a will and a trust to ensure their wishes are followed and their loved ones are taken care of after they die.
Estate planning can also help avoid family conflicts, legal disputes, and unnecessary expenses that can arise when someone dies without a proper plan.
Therefore, it is advisable to consult with a qualified estate planning attorney who can help you create a customized plan that suits your needs and goals.
