The recent death of legendary actor, Gene Hackman, age 95, and his wife Betsy Arakawa, age 65, has brought attention to the complexities surrounding their estate and illustrates the need for proper estate planning. At his death, Gene Hackman had an estate worth approximately $80 million. The famous couple were found deceased in their Santa Fe, New Mexico home on February 26, 2025. Investigations revealed that Betsy died a week before her husband. The couple executed their last will and testaments in 2005 and do not appear to have been updated since that time. The wills have significant implications for the distribution of their assets. The close proximity of their deaths also raises questions regarding their intended distribution of estate assets.
What Happens to the Estate?
Gene and Betsy did not have children together, however, Gene had three children from a previous marriage, Christopher, Elizabeth and Leslie. The children were not named as beneficiaries of his last will and testament. Gene only named his wife, Betsy as his beneficiary and did not name a contingent beneficiary. Because Betsy predeceased Gene, his estate would be subject to the laws of intestate succession. As a result, his estate could pass to his next of kin, which would be his children. While Gene did not name his children as beneficiaries in his will, he did not explicitly disinherit them either. It is difficult to determine Gene’s true intentions in his will, but as a result of poor planning, the law will dictate the distribution of his estate.
Betsy’s last will and testament named Gene as her beneficiary. Her will also included a provision that if Gene did not survive her by 90 days, her estate would be directed to a charitable trust. The couple had significant real estate holdings valued at approximately $11 million dollars. The title to the properties were solely in Betsy’s name. Since Gene did not survive the required 90 days, the charitable beneficiaries will likely receive the properties and not Gene’s estate or his children.
Outdated Wills
Hackman’s estate involves outdated wills, significant assets and potential litigation involving Gene’s family members and named charities. Gene intended for his estate to pass to his much younger wife, but he did not provide for the unforeseen circumstance where she would pass before him. While Gene did not provide for his children, his estate will pass intestate, as if he had no estate plan at all. This will result in his children inheriting his fortune, whether that was his true intention or not. New Mexico is also a community property state, and Gene and Betsy were married for 30 years, therefore, a portion of his assets could be deemed community property which would then go to Betsy and included in her estate.
Takeaways
This case serves as a reminder of the importance of regularly updating your estate plan to reflect your current wishes and circumstances. It also shows the necessity of working with an estate planning attorney who can help you plan for those unintended circumstances and catastrophes so your estate can pass according to your wishes and not determined under the law.
