What Can We Learn from INXS’s Michael Hutchence? Lessons in Estate Planning and Trusts

The INXS singer, Michael Hutchence, tragically died in 1997 at the age of 37. He left behind his daughter and a last will that bequeathed $250K each to Amnesty International and Greenpeace (awwww, that’s nice!). The remainder of his estate was to be divided 50% to his daughter and 50% to his parents, siblings, and girlfriend.

The beneficiaries initially believed the estate was worth $10M – $20M, but after an 8-year legal battle, it was determined that the singer had died owning virtually nothing.

The Labyrinth of Offshore Trusts

While alive, Hutchence often spoke to his friends and family about his purchases of various properties and companies. However, the court case revealed that Hutchence’s assets were held in a labyrinth of offshore trusts set up in tax havens by advisers.

Here’s what the case revealed:

• Hutchence didn’t “own” anything directly.
• The London home wasn’t his.
• Neither were the luxury vehicles, including a Peugeot, Aston Martin, Mercedes Jeep, Cherokee Jeep, Bentley, and Ducati motorcycle.

According to the “advisors,” Hutchence was deliberately not listed as a beneficiary of these offshore trusts. Supposedly, this was because he didn’t want his relatives or girlfriends to access his fortune.

(Hhhhhhhmmmmmm, that’s not what the last will said…)

So, What Can We Learn from This Devil Inside?

A trust and a last will are opposite sides of the same coin.

• A last will takes care of everything that’s in someone’s “estate” but must go through probate (a legal process to settle the estate).
• A trust avoids probate but only controls assets already in the name of the trust.

In Hutchence’s case, he moved everything (including cars, which is uncommon) into the trust. As a result:

• There was nothing in the “estate” for probate.
• Everything went according to the trust terms.
• The last will served only as a reminder that the “advisors” might have been self-dealing (you think??).

A Questionable Estate Plan

It’s odd that Hutchence’s trusts excluded his daughter and family. However, the courts didn’t get far in unraveling the complexities of the trusts.

Ultimately, the family settled with the “advisors,” but they reportedly didn’t receive enough money to cover their $500K legal fees.

The Final Lesson

So, there you have it, folks:

• What You Need is a well-crafted estate plan.
• Ensure that you retain control of your assets while alive.
• Clearly list your beneficiaries in the plan.

And for the record, I love 90s music (we love what we love)!