David Bowie, the iconic singer who passed away last month is gaining fame in financial circles for the steps he took in estate planning.
Now, Bowie lived in England where laws governing inheritance are quite different from the United States, but what the singer did is a good lesson for anyone.
Putting it simply, according to the Daily Mail in London, he planned ahead and was able to leave his current wife and two children $189 million. Not everyone has the earning power of David Bowie, but it is worth noting that at one point in the 1970’s he was reportedly near bankruptcy.
The key to his success was the sale of what became known as “Bowie Bonds.” Essentially he sold the royalty rights to all his pre-1990 music for 10 years, after which time the rights reverted to him. The bonds paid investors 7.9% until they expired in 2007 and he recaptured the music rights.
He had the confidence that his career and earnings would continue to rise but knew that the cash he got for the royalty rights would allow him to continue to support himself and his family. According to his financial managers at the time, Bowie was “very much into estate planning at a relatively young age.”
It’s unfortunate that more Americans don’t have the foresight to think ahead and plan for their retirement and the well being of their families.
Our Middlesex County estate planning attorneys are ready to help you bring your estate plan into the new millennium and make the most of the new paradigm. Give us a call today.
