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Gene Hackman’s Shocking Death Sparks $80 Million Estate Battle Over Major Trust Mistake

BBG News

The unexpected passing away of Gene Hackman a month ago has sparked speculation about a significant power struggle over his estimated $80 million estate.

At the time of his death on approximately February 18, when he was 95 years old and recently deceased, the actor had established a living trust. However, each person named as a potential trustee to succeed him in managing the trust had already passed away prior to his demise.

Based on reports from DailyMail.com, it appears that a representative from the Hackman estate submitted a petition on Monday, asking for the appointment of a temporary replacement trustee.

On Thursday, District Judge Maria Sanchez-Gagne granted the request and appointed Avalon Trust, LLC as a temporary replacement, following the suggestion of the estate’s representative, Julia Peters.

In conversation with DailyMail.com, Laura Cowan, a renowned estate planning lawyer and the architect of 2-Hour Lifestyle Lawyer, clarified that when an individual establishes a living trust, they designate someone to act as the successor trustee, responsible for managing and distributing the trust’s assets upon their passing.

However, she emphasized a significant error Hackman committed concerning his trusts, which might result in intricate problems regarding his extensive estate in the future.

According to her, Mr. Hackman appointed his successor trustees, but unfortunately, everyone he chose had already passed away before him.

Appointing Avalon Trust, LLC as the interim single trustee for Hackman’s trust means that the court can guarantee that taxes are taken care of, beneficiaries are informed, and no important matters will be overlooked.

In many critical estate situations, particularly those involving several deceased individuals or intricate family relationships, it’s standard practice to take a forward-thinking, preventative approach. This is the explanation provided by Cowan.

‘Although the majority of a revocable living trust’s contents are kept confidential, legal documents concerning disagreements, appointments of trustees, or probate of assets not included in the trust can potentially disclose certain information. However, it’s unlikely that the entire trust will be made public. Important details such as the powers of the trustee or asset allocations could, under specific conditions, end up in court records.’

Cowan said those ‘special circumstances’ could include if the heirs contest the trust.

‘Certain parts of it might be presented as legal proof in a court case. If some resources weren’t correctly moved to the trust, they would potentially pass through probate, with court documents possibly referring to the trust during estate management.’

Cowan noted that because Gene hasn’t updated his will for a long time, it might lead to potential complexities with his estate, such as increased taxes, delays, and extra fees associated with the probate process.

As an estate planning attorney, one common misconception we encounter is that wills are exclusively for the affluent. However, Gene Hackman’s estate situation demonstrates that this isn’t always the case. The main issue here isn’t his wealth but rather the age of his will – it was written 20 years ago. This raises questions about whether it truly reflects his current wishes.

Additionally, there’s the matter of them both passing away at approximately the same time. The question of who passed away first and the destination of their assets are unrelated to wealth or fame, as Cowan elaborated further.

Additionally, their age gap of thirty years makes the situation intriguing. Given this difference, they likely wouldn’t have anticipated dying at such a close proximity. Consequently, this could potentially lead to some complex legal issues.

Peters’ initial appeal clearly stated that the bulk of Hackman’s property is kept in two distinct trusts, namely the GeBe Revocable Trust and the Gene Hackman Living Trust.

As per the emergency petition, Gene Hackman had specified that upon his passing, the management of the Gene Hackman Living Trust would pass to his wife Betsy Arakawa. In case of Betsy’s demise, Michael G. Sutin would take charge of the trust. Notably, only Gene Hackman and Betsy Arakawa were named as the ultimate trustees of the GeBe Revocable Trust.

However, the petition indicates that Sutin passed away in 2019, but it seems the trusts have not been updated since then.

The police stated that it’s thought Arakawa may have passed away due to complications from the potentially fatal hantavirus-induced respiratory issues approximately a week prior. Regrettably, Hackman eventually lost his life under similar circumstances, leaving no one alive to oversee his trusts.

Earlier this month, the contents of Hackman and Arakawa’s wills were revealed. 

The Academy Award-winning actor bequeathed his estimated $80 million wealth accumulated in Hollywood to his wife Betsy, who passed away at the age of 65 and served as a trustee for his trust. It’s uncertain whether his three children – Christopher Allen (65), Leslie Anne (58), and Elizabeth Jean (62) – from his earlier marriage with Faye Maltese received anything according to his will.

His potential absence of contact with his former estranged children could lead to a potential legal dispute concerning his inheritance.

A legal authority shared with DailyMail.com: “Had he passed away before her (Betsy), the situation could have escalated into a significant conflict.

‘His kids would’ve probably gone crazy.’ 

According to her will, Betsy has chosen to allocate her possessions to a trust, which will later be disbursed to charities and for the repayment of outstanding medical bills.

In a seemingly signed copy of his will dated June 7, 2005, Hackman, who had Alzheimer’s, executed the document. The precise time when he was diagnosed with this progressive brain disorder remains uncertain.

Information about the investigation into the mysterious deaths of Gene and Betsy, which occurred on February 26th in different rooms of their home, was made public by officials from Santa Fe, New Mexico, last Friday.

Arakawa passed away approximately on February 11, due to a seldom-encountered mouse-borne virus. On the other hand, it’s believed that Hackman succumbed to heart disease around February 18.

Lawyer Julia Peters has been named executor for both wills; however, it remains undetermined how the estates will be distributed without access to the Trust document.

Initially, Gene managed a different trust known as the GeBe Revocable Trust. However, in 1994, he utilized his power to appoint individuals and designated Betsy as the Successor Trustee. This change was implemented on September 22, 1995.

At some point, Gene made another change, and the Avalon Trust was made the Successor Trustee.

In simpler terms, the original trust agreement was significant because it might have named his children as potential recipients prior to a modification made in 1994. Consequently, Betsy became the new person responsible for managing the trust after that update.

Additionally, it was pointed out that Chris, Gene’s son, making the choice to employ Andrew M. Katzenstein, a well-known California trust and estate lawyer, is worth mentioning.

‘By hiring Katzenstein, it shows that he [Chris] is definitely trying to protect his interests.’

It seems to me that Chris hiring a powerful attorney suggests there might be some underlying issue. It’s puzzling to me why his daughters aren’t involved, which leads me to believe that potential difficulties could be on the horizon.

‘Whatever they collect from the estate will be managed by Avalon,’ the source added. 

In case her spouse passes away before her, Betsy has specified in her will that the remaining assets of her estate should be managed by her appointed representative as a trustee. The purpose is to establish a charitable trust, which aims to benefit the community. This trust’s objectives should align with the charitable preferences and interests that she and her spouse shared during their lives.

According to the document, any outstanding debts that are legally collectible will be settled as quickly as possible following my demise.

According to Betsy’s will, there may be a separate inventory detailing how her personal possessions such as furniture, jewelry, and artworks will be distributed.

As a lifestyle advisor, I’d put it this way: My dedication to the allure of Tinseltown took a toll on my personal life, leading to a separation from my wife Faye. During those formative years for our children, I found myself often preoccupied with work, distancing myself somewhat from our family growth process.

He had grown distant from Christopher, acknowledging that he was often unavailable due to being away frequently, during a period when his son required more assistance and direction.

I’d be honored to share that I frequently found myself rubbing elbows with the fabulous duo, Leslie and Elizabeth, at movie premieres and glitzy Hollywood soirees. They graciously accepted my invitations to join them on these exciting occasions.

However, Hackman admitted that his children experienced a challenging upbringing due to the constant weight of his success looming overhead.

Only after marrying his second spouse in 1991 did the family start mending. Arakawa was determined to facilitate Hackman’s reunion with his kids, urging him to welcome them and his grandkids to their residence in Santa Fe.

Towards the end of his life, it appears that Hackman was particularly close to his children and grandchildren. However, there were stretches of several months where he didn’t see his long-time family companion, Leslie, who maintained frequent contact with both Hackman and Arakawa.

Betsy was found in a bathroom with one of the couple’s three dogs, which was dead in its crate. 

The findings from the New Mexico Medical Examiner’s Office and the Santa Fe Sheriff’s Department provided answers to numerous queries raised following the discovery of the couple’s remains by the caretaker in their private community.

Additionally, they might be instrumental in distributing the shared possessions between the couple, such as their reportedly $3.8 million house in Santa Fe and other assets totaling approximately $80 million, as per celebritynetworth.com.

The absence of children in Arakawa, the Hawaiian pianist, might affect any potential inheritance for his relatives.

It’s crucial to note that if the couple had passed away within a 120-hour window, according to New Mexico law, their deaths would be categorized as happening ‘at nearly the same time.’

This may have impacted how the estates of Hackman and Arakawa were divided.

However, since it was established that Hackman survived for a week beyond his wife’s passing, as indicated by his pacemaker records, the applicable provisions wouldn’t hold true in this case. As a result, his estate might be distributed to beneficiaries other than Arakawa, according to experts’ analysis.

In many states, such as New Mexico, a five-day period is typically assumed for survival, after which a person is considered to have met the requirements of most wills, according to Kevin Holmes of Holmes Law Firm.

In the upcoming weeks, there could be several unforeseen factors that might arise, as mentioned by John Budagher, a lawyer from Budagher & Tann.

Budagher indicates that the money is yours. You have the freedom to decide who receives it, even a donkey sanctuary located in Connecticut, if you so choose.

A significant point might be the time when a person like Hackman, due to his Alzheimer’s progression, signed any will or legal documents, because any subsequent changes in those documents may need to be verified.

According to Budagher, being newer doesn’t necessarily make it incorrect; instead, it could be more susceptible to being contested – particularly when it involves handing over all assets to a caretaker.

Additional unspecified aspects involve whether Hackman and Arakawa established any premarital or postmarital contracts, as well as whether any offspring or possible heirs may put forth inheritance claims on the estate.

Although some actions might occur soon, the entire process could stretch out for quite a while, as per New Mexico law, relatives or others have up to three years following a person’s demise to submit a probate claim.

Hackman’s two daughters and granddaughter Annie expressed their deep sorrow over his passing.

The statement reads, ‘To the world, he was a beloved and respected figure due to his exceptional acting career, but to us, he will forever be known as Dad and Grandpa.’

Leslie shared with DailyMail.com that she had a close relationship with her father, but there hadn’t been any contact between them for several months leading up to his death.

As a lifestyle expert, I would put it this way: Despite my confidence in the sequence of events at the couple’s property, I, Adam Mendoza, Santa Fe Sheriff, have emphasized that we are diligently working to tie up all loose ends and fill any gaps in our investigation. In other words, until we’ve successfully addressed all potential leads and closed any possible loopholes, this case remains open for further investigation.

Although every death was deemed natural, with no indications of either internal or external injuries, Mendoza maintains that investigators have not yet concluded their work.

In my line of work as a lifestyle advisor, I often find myself in situations where I need to delve into the intricacies of various scenarios. In this instance, I’m referring to a case where a couple’s pet has unfortunately passed away. The authorities are currently holding off on their actions, awaiting two crucial pieces of information. Firstly, they’re eager to examine the cell phone records of the grieving couple, which might provide additional insights into the events leading up to their beloved pet’s demise. Secondly, a detailed examination, often referred to as an autopsy or necropsy for animals, is scheduled to be conducted on the deceased dog. This procedure will help shed light on the cause of death and potentially reveal any underlying issues that could have contributed to this unfortunate event.

As reported by DailyMail.com, detectives seized two mobile phones during their search, based on the warrant they were granted.

In the mid-1980s, Hackman and Arakawa first crossed paths at a gym in California. Shortly following this encounter, they decided to relocate to Santa Fe. Their journey together culminated in marriage in 1991. Throughout their time in Santa Fe, they were deeply involved in both the city’s vibrant art community and its thriving culinary scene.

Over the past few years, my appearances in town became less frequent due to my declining health. Prior to their passing, they led a rather secluded existence, as I was informed by Mendoza.

It seemed as though both Hackman and Arakawa had unexpectedly collapsed onto the ground, with no indications of any blunt impact injuries.

In the bathroom, Arakawa was discovered unconscious, apparently suffering from the hantavirus, a relatively uncommon illness transmitted by rodents, in the United States.

The majority of COVID-19 cases in the United States tend to be clustered in the Western region. In the northern part of New Mexico specifically, the transmission of the virus is primarily linked to the droppings and urine of deer mice.

Mice droppings can easily become airborne when people are cleaning areas like sheds or closets that have previously housed mice. This is because their feces may contain harmful particles that can be inhaled if proper precautions aren’t taken during the cleanup process.

To start, it presents symptoms similar to the flu, and may progress to cause heart and respiratory failure. Tragically, between 38% and 50% of all instances can prove fatal.

In that very room, the 12-year-old mixed breed Australian Kelpie dog, named Zinna, was discovered lifeless within a cage.

On February 9, Arakawa found Zinna inside a crate at a Santa Fe veterinary clinic. This could be the reason why the dog was discovered deceased within the same crate, according to Mendoza. It’s suspected that the dog might have perished due to lack of food.

The other two canines, Bear and Nikita, managed to make it through and were spotted wandering near the southwestern-styled estate that belongs to the couple.

Officals reported that Hackman was found sprawled on the floor of a mud room adjoining the kitchen, with his sunglasses and cane close by, suggesting he might have tripped or slipped.

Despite initial suspicions of carbon monoxide poisoning, there was no detectable evidence of carbon monoxide in their bodies upon examination.

In a long-spanning career that began in the early 1960s, a retired Marine named Hackman, recognized for his gravelly voice, featured in over 80 films, and made appearances on both television and stage as well.

In 1967, he got his initial Oscar nomination by playing the part of Clyde Barrow’s brother in the film ‘Bonnie and Clyde,’ which was his debut role.

In 1972, he was awarded the Oscar for Best Actor due to his exceptional performance as Detective Popeye Doyle in ‘The French Connection.’ Then, in 1993, he received another Oscar, this time for Best Supporting Actor, for his work in ‘Unforgiven.’

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2025-03-21 07:21

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