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Learn From Anna Nicole's Financial Mistakes

Avoid Fighting Among Your Family Members And Lovers By Planning Ahead

POSTED: 2:28 pm PDT August 11, 2008
UPDATED: 9:40 am PDT August 25, 2008

Eighteen months after her highly publicized death, Anna Nicole Smith continues to draw attention.

The former Playboy model’s controversy-filled passing in 2007 was just named the 20th biggest celebrity scandal of all time by a new VH1 entertainment blog.

There’s no doubt that the financial nightmare the billionaire-widow left in her wake contributed to her elevated status on the scandal charts.

Slideshow: Learn From Anna Nicole's Financial Mistakes

While odds are that most of us won’t find ourselves in the real-life soap opera that Smith was in preceding her death, you can learn from Smith and save your friends, family members and lovers much legal hassle after your demise.

Kiplinger.com recently published several ways to avoid Anna Nicole’s estate drama in your own life.

First, Kiplinger reports, plan for contingencies. Smith’s last will was written in 2001, before the birth of her daughter in 2006. The will also had an odd clause that prevented any unknown children from receiving inheritance, a clause usually only added by men.

You can avoid similar complications by building in flexibility to your will. Name alternative beneficiaries and state your intentions toward unborn children -- and revise the will as needed to include specifics, such as the name of a new child, according to the report posted on Kiplinger.com.

Custody of Smith’s daughter Dannielynn was fought over in the courts for months. This can be avoided by appointing a guardian for your children.

Courts will often grant custody to the biological parent. However, if you see that person as unfit, make your case in your will and hope a court agrees.

Funeral and burial rights were another element of the Smith fiasco. Her mother wanted her buried in Texas, but a representative for her daughter had other plans and she was eventually buried in the Bahamas.

You never know what plans your family will have for you after your death, so you’ll want to design your own funeral and outline burial plans. Make sure your family members are aware of your wishes. Have a lawyer review your words to make sure they are legally enforceable.

Many of Smith’s posthumous legal problems could’ve possibly been avoided had she married one of her suitors.

Legally, boyfriends and girlfriends get nothing, but spouses have similar inheritance rights to children. So, for legal simplicity, tying the knot sooner than later is ideal.

For same-sex partners, a number of states give domestic partners some or all of the same protections as married couples. Massachusetts and California recognize same-sex marriages.

No matter what your state or status, you can always name a loved one as beneficiary in your will.

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