Succession planning helps you protect your assets from litigation, tax implications, and uncertainty with beneficiaries. A well-planned procedure means that assets are transferred in strict accordance with the owner’s will during his life and after his death.
The case of Gene Hackman, a well-known American actor who passed away in February 2025, was a good reminder about the importance of estate planning. A poorly thought-out will caused conflicts within the family of the Hollywood legend and led to extensive legal battles.
What Happened to Hackman’s Inheritance?
According to general estimates, Gene Hackman owned assets worth up to $80 million. According to the will, which had not been updated since 2005, in the event of the actor’s death, all of his property was to be inherited by his wife, Betsy Arakawa, who was listed in the documents as the sole heir. But a tragic turn of events disrupted these plans.
In February 2025, social service workers found both spouses dead in their home in Santa Fe, New Mexico. Betsy Arakawa died on February 11 from an unknown virus, and Gene Hackman passed away on February 18 from a heart condition complicated by Alzheimer’s disease.
As a result, the estate is set to pass to someone who died before the inheritance was officially opened. This makes the will legally unenforceable in its original version.
How Might the Situation Develop?
When planning inheritance, lawyers usually include a “Plan B” — conditions for asset distribution in case the designated heir cannot inherit. However, no such clauses were found in the actor’s documents, so the law comes into play. According to it, the next in line are his children: Christopher, Elizabeth, and Leslie Hackman. For them to claim the inheritance, they will need to prove that the father’s will is either disputable or unenforceable in the part concerning the deceased beneficiary, since Betsy Arakawa had already passed away by the time Gene died.
The situation is further complicated by Arakawa’s own will. Her last wish was to transfer all money and assets to charity in the event that both she and Gene died within three months of each other. As a result, a lengthy legal battle is looming between Hackman’s children and charitable organizations.
Taxation is also a key issue. The tax rate directly depends on who receives the inheritance: family members, spouses, charities, third parties, etc. Given that $80 million is at stake, the amount payable to the treasury could vary significantly.
What happened vividly demonstrates how important it is to plan the inheritance transfer wisely — and how much damage negligence in this matter can cause.
Estate Planning Recommendations
The Hackman case and other similar precedents highlight the importance of following key principles when drafting and regularly updating a will.
- Review your estate plan regularly — Documents should be updated every 3–5 years, or after major life events (marriage, death of relatives, birth/adoption of children, receiving large sums, starting/closing a business, etc.). Your plan must comply with current laws and reflect any legal changes.
- List alternative beneficiaries — Always name backup beneficiaries for accounts and assets. It’s wise to plan multiple inheritance scenarios in case the primary beneficiaries are unavailable.
- Consider setting up a trust — With the right structure and a jurisdiction that offers high legal protection, a trust can help pass on assets to heirs without going to court or risking contestation. Trust terms can also be amended during your lifetime.
- Grant financial and healthcare power of attorney — Appoint trusted individuals to make decisions regarding your assets and health if you become incapacitated. This is crucial for safeguarding your interests in case of mental or physical decline.
A will is just one way to manage your assets. Other non-testamentary inheritance methods also exist (such as insurance policy beneficiaries, trusts, joint ownership). In some countries, a will does not take precedence over the mandatory share reserved for heirs (e.g., in France, Germany, Italy, Spain).
When planning asset distribution, take family relationships into account. If heirs are to receive unequal shares, discuss this in advance to reduce the risk of future lawsuits and conflicts.
When Should You Revise Your Estate Plan?
You should update your estate plan if:
- More than 5 years have passed since the last update
- Your net worth has changed significantly
- You’ve experienced major life changes (e.g., birth of children, deaths in the family, divorce, marriage)
- Your health condition changes (serious illness or injury that may affect capacity)
- You need to reprioritize beneficiaries
- You’ve acquired complex assets (e.g., businesses, patents, international holdings)
- You’ve moved to a different country or jurisdiction with different inheritance laws
Also monitor the activity and health of your trustee. If they’re elderly or seriously ill, they might not be able to fulfill their duties when needed — so you may need to appoint a new specialist.
Don’t delay revising your inheritance plan, even if it doesn’t seem urgent. Timely updates protect your assets and the people who matter most.
What About Digital Assets and Intellectual Property?
When you plan inheritance, it’s important to consider intellectual property and digital assets in addition to money, real estate, and business. These can be harder to manage — especially in the case of virtual currencies or content rights. The main challenge lies in transferring account access:
- Social media accounts
- Cryptocurrency exchanges
- Virtual wallets
- Cloud storage
These accounts may contain personal and financial data — or, in the case of exchanges, access to crypto assets. To manage them properly, find out the platform’s procedures for handling user death and how accounts can be transferred.
Managing royalties from creative work (books, music, films, etc.) and image rights can be even more complex. A solid estate plan will define who can use such assets and collect royalties.
Laws on intellectual property and digital assets are evolving — driven by crypto market growth and general legal updates around intangible rights. It’s important to keep your inheritance plan updated accordingly.
Learn more about offshore trusts and foundations for asset protection.
What Are the Basic Inheritance Rules to Know?
Inheritance should be distributed as outlined in the will. But if the will is incomplete or missing, local laws apply. While rules differ by country, the priority of beneficiaries generally follows this order:
- Spouse
- Children
- Parents
- Siblings
- Other relatives
This standard order is evident in the Hackman case: after the primary beneficiary (his wife) passed prematurely and there were no instructions for alternative heirs, the actor’s children became the likely claimants. A personal estate plan allows you to pass on assets according to your own wishes — including to third parties or organizations.
Other Ways to Protect Your Assets
Wealthy individuals often face the most estate planning challenges — needing to guard against inflation, excessive taxes, and local instability. Many countries have strict inheritance laws with high taxes and slow transfer processes. Here’s how to manage those risks:
- Use purpose trusts (for family, business continuity, philanthropy, etc.)
- Buy life insurance and name specific beneficiaries
- Diversify assets across countries with favorable tax and inheritance laws
Even with average wealth, you can benefit from such tools — for example, by opening a foreign bank account or creating a family trust for specific goals.
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Tailored Inheritance Structuring Solutions
DIY inheritance planning can involve legal risks and knowledge gaps across jurisdictions. To avoid costly mistakes and build a reliable structure, consult our experts. We will assess your situation and suggest optimal solutions.
In a personalized consultation, you will receive:
- Recommendations on selecting jurisdictions with the right tax regime
- Risk analysis and capital protection tools
- Effective and confidential inheritance transfer options
We help you build a structure that works — during your lifetime and beyond.
16 April 2025 