Whitney Houston's death puts different type of records in spotlight

While the exact cause of the death of Whitney Houston has yet to be determined, the premature passing of the pop star should serve as a concrete reminder to advisers to update estate documents on a regular basis. Indeed, advisers and planners need to make sure wealthy clients properly fund the trusts they've set up for their heirs, and that they update their wills and other estate documents every few years. “Celebrity stories like this are a great educational tool to share with clients and highlight what should be done, what was done wrong, and what was done right,” said Andy Mayoras, an estate planner and co-author of “Trial & Heirs: Famous Fortune Fights” (Wise Circle Books, 2009). At this point, with relatives focused on burying the 48-year-old in New Jersey on Saturday, it's unclear how the settlement of Ms. Houston's estate will play out. But the six-time Grammy winner, who died Feb. 11 in a Beverly Hills hotel, reportedly had a will that names her only daughter, Bobbi Kristina Brown, as the main beneficiary, according to a family friend. Ms. Brown, whose father is musician Bobby Brown, is 18. “At the very least, hopefully a revocable living trust was set up and even better, a series of trusts that are funded by the estate's assets,” Mr. Mayoras said. “Would you want your 18-year-old daughter to inherit everything in a lump sum?” Along with setting up insurance policies to fund the trusts, Ms. Houston should have updated her will, any trusts, and her insurance beneficiaries after her 2006 divorce from Mr. Brown, Mr. Mayoras said. Bobbi Kristina is the only child from their relationship, though he reportedly has five other children from different relationships. Along with divorce, any life event such as the birth of a child, a move across state lines or remarriage should spark an updating of estate documents. A wealthy client should review those documents every three to five years to account for new real estate or business ventures and make sure all assets are funded, he said. The estate planning that celebrities and high-net-worth clients require is complex. Often, such clients don't want to devote the time to reviewing things, said Jeremy Kisner, president of advisory firm SureVest Capital Management, which has some celebrity clients. “I find that especially with celebrities, they start the planning but never actually finalize it,” he said. The planning requires stars to make hard decisions about whom to support — and with how much — as well as how to deal with estate or tax planning changes that may require them to give up some control and flexibility, he said. “This type of planning isn't just done over a lunch meeting,” Mr. Kisner said. A number of music industry stars died without completing a will. That list includes Jimi Hendrix, Bob Marley, John Denver and Sonny Bono.