Late Gene Hackman's R1.5b Contested Estate: Lessons For South Africans

The value of a well-drafted, updated will is in the spotlight again with news of uncertainty surrounding two-time Academy Award winner Gene Hackman's estimated 80 million around R1.5 billion fortune.

His three children could be in line to inherit even though they are not named in his will.

The sad circumstances of the legendary actor's and his wife's deaths are being exacerbated by uncertainty surrounding his financial legacy. This vividly illustrates how a last will and testament that has not kept pace with life changes can cause chaos, stress, drama and even lead to legal disputes for a family when a loved one passes away.

Hackman's will, drafted in 1995 and last updated in 2005, named his wife of more than 30 years, classical musician Betsy Arakawa, as sole beneficiary. Her will named him as beneficiary but also included a clause that if they passed away within 90 days of each other, her estate must go into trust and be donated to charity once medical expenses are covered.

Showing how truth can be stranger than fiction, Arakawa 65 passed away from a rare virus, seven days before Hackman 95 died of heart disease while also suffering with severe Alzheimer's, according to autopsy reports.

Questions have now been raised about the validity of Hackman's will and whether his three children from a previous marriage could be in line to inherit the considerable fortune amassed from his film legacy.

This highlights several crucial estate planning considerations. Capital Legacy National Manager of Succession Planning, Ken Newport, explains how this would play out in our local context under South African law.

This is a cautionary tale reminding us to make provision for the unlikely event that partners can pass away in close succession . So-called mirror wills between life partners are good practice, where two identical wills are drafted, but naming the respective partners as beneficiaries. However, it's also important to nominate what's known as 'contingent heirs' or 'succeeding beneficiaries' in case both partners pass away at the same time, or soon after each other. It could be a close family member, a trusted friend, or even a charitable organisation to avoid uncertainty and disputes if your partner passes away soon after you.

Life changes all the time. An outdated last will and testament can have serious consequences for loved ones left behind. Reviewing and updating your will at least once a year ensures that it reflects your current wishes and latest circumstances. Apart from reviewing your will once a year, it's also a good idea to update your will when major life events take place, for example getting married, having or adopting a child, getting divorced, or when there are big changes to your financial situation.

In South Africa, only minor children under 18 have a legal right to claim maintenance from a parent's estate. Adult children do not automatically inherit unless named in the will. If no alternate heirs are specified in the will, the estate would be distributed according to the Intestate Succession Act meaning the deceased's closest living relatives such as children could inherit.