What Can We Learn From Jerry Lee Lewis?

Rock & roll legend Jerry Lee Lewis died in 2022, at the age of 87, leaving behind seven wives and six children and an estimated estate worth between $10M – $15M. The hitmaker died on a 30-acre ranch in Nesbit, Mississippi that he purchased in the 70s.  

Shortly after buying the property (boasting a piano-shaped swimming pool) Lewis deeded and transferred it to his tour manager (and former brother-in-law) Cecil Harrelson Sr. allegedly to protect it from the IRS. At Harrelson’s death in 2013, Harrelson’s estate plan passed the property to Harrelson’s 3 children and Lewis continued to live on the property until his death in 2022.

It’s alleged that Lewis (while he was alive) assured his youngest son, Lee, that Lee would inherit the ranch and Lewis even bequeathed (love that word!) the property that he (and his family) resided on for over 40 years to Lee in his last will and testament.  

Shortly after Lewis’s death (and even though Lee was still living on the ranch), the Harrelson children put the property up for sale and demanded that he vacate the premises! Lee was aghast and stated, “my father never intended the property to be passed on to Cecil and his heirs. Consistent with my father’s wishes, he left the ranch to me in his last will and testament.”

In the Harrelson’s children’s defense (this newsletter gives both sides), they claimed that their father, Cecil, held legal title to the ranch and gave Lewis a life estate in the property out of a sense of loyalty to the performer.  They asserted that when Lewis died, they the legal owners, entitled to do whatever they wanted with the ranch.  The Harrelson children claim that all parties involved were aware of the circumstances for many years and were very surprised at Lee’s confusion.

As you can imagine, the dispute ended up in probate court and as expected, the Harrelson children won and Lee was evicted from the ranch. Yes, the last will can only control assets that the decedent owned at the time of their passing

So, what can we learn from this Rockin’ Ranch Rebellion?

We can talk all about how you can’t give what you don’t have, unless you have a power of appointment (not to be confused with a power of attorney).   

A power of appointment is a right granted in a will (or a trust) by an individual (the Giver) to another person (the Power Holder) to determine where an asset should go. Yes, we can change someone’s beneficiary if we have a power of appointment.  A simple example would be if a parent leaves his child a property (along with a power of appointment) in a trust. The child can specify the Receiver of the asset, even at the child’s passing through the child’s estate plan. The parent allows the child to dictate where the parent’s asset will go, thereby exercising the child’s power of appointment. The parent knows in advance that the child will get to choose the ultimate beneficiary of the asset.

This granted power allows the Power Holder to name someone else as a Receiver even before the Power Holder receives it. Typically, the Power Holder is not required to exercise the power, but has the option to exercise it. If the power is left unexercised, then the asset will pass to the beneficiaries originally named in the will or trust. The Power of Appointment allows the Giver, making a will or trust, to postpone the decision of who should receive their assets, and gives the decision-making power to a Power Holder that may be in a better position in the future to determine who should receive it.

So, there you have it. We learn that it’s true, in general, you can’t give what you don’t have unless you have a power of appointment! We also learn that when it comes to estate planning, it’s like The Wild Side of Life!