This is a story that has gotten quite a bit of attention, at least in the estate planning world. It gets attention because of both Buzz being a celebrity and that he is in a legal battle with his children over his estate and assets. It makes for not only some good “prime time drama” but also some great lessons in what to do and not to do when it comes to estate planning.
To start with, Buzz Aldrin’s family is claiming that he has dementia and is vulnerable to being manipulated by others. In retaliation to this claim, he has filed a lawsuit accusing two of his own children and his former manager of taking advantage of their roles in managing his assets. He says the Buzz Aldrin Space Foundation is using its resources against his wishes, by funding “future educational endeavors” instead of current ones, according to an article in MarketWatch titled “Buzz Aldrin is fighting his family’s claim of dementia—revocable trusts can be flawed.”
In simple terms, the lawsuit claims that the family and former manager have forbidden him to marry someone. It also contends they are moving money from his accounts without his consent or knowledge. It also talks about specific cases of moving money to his company, Buzz Aldrin Enterprises. His children said in a statement that the allegations are a result of the increased confusion and memory loss he has experienced in recent years. They say this can be supported by witnesses and bank or business records. They asked a Florida judge to appoint them as co-guardians because of his reported decline so they can make decisions on his behalf.
Aldrin currently has a revocable trust and has named his son Andrew as a trustee, which states that Andrew must give written permission before any changes can be made. Aldrin was scheduled to take a competency test in June, although the results have not been released yet.
Revocable trusts are great tools to avoid probate and allow the owner to remain in control while they are still alive. They can also be used to identify the individual(s) who will take care of your children. They provide flexibility for your wishes after death as well. However, they are not always the best protection for a variety of reasons…it just depends on the situation.
In the ideal situation, the family sits down and has a conversation together while the person is still fully functioning. This allows them to be part of the decision-making process. The challenge with dementia is that the person may not be aware of the prior agreement or what was discussed. If they can’t remember this happening and want to make changes, this can be very disturbing to the family members.
I always recommend that an estate planning attorney be present in these meetings as an unbiased and objective party who can document accurately what was discussed. This gives much more credibility to the information discussed for all parties involved. The role of the attorney is not to take sides but to merely capture the thoughts and wishes of the person putting together the estate plan and make sure the loved ones understand their wishes. This generally alleviates most of the confusion and animosity that can be created when someone has the beginning stages of dementia. Once they have been diagnosed with this condition, there are other measures that should be explored at that time to protect both the individual with the estate and their loved ones. It can get more complex but it can be handled.