Learning from Anna Nicole Smith

KIP TIP Kevin McCormally: I am Kevin McCormally of Kiplingers. I am here with Jane Clark, an Associate Editor of Kiplinger's Personal Finance Magazine to talk about Anna Nicole Smith. Jane, Anna Nicole has been dead for a while. What can we learn from her? Jane Clark: Actually the lessons from the message she left behind are timeless. Kevin McCormally: Like what? Jane Clark: Well, for instance she failed to update her will to reflect the birth of her baby and the person who she did name her son died before her, so she effectively left no will. Kevin McCormally: Well, that let to the custody battle over her child her, but isn't that kind of unusual? Jane Clark: Actually a lot of people don't realize that they have to name a guardian in a will. Otherwise, the court will name a guardian for you and it may not be someone you want. Kevin McCormally: But isn't that usually the other biological parent? Jane Clark: It is usually the other biological parent, but that parent might die around the same time you do, or might not be able to take the child, or it might not be fit in your opinion. Kevin McCormally: Is there anything else we can learn from Anna Nicole situation? Jane Clark: Actually she could have done her boyfriend a favor by either naming him in her will, or marrying him. Kevin McCormally: Why is that? Jane Clark: Well, if she had named him, obviously he would have inherited some of her money and if she had married him, he would have inherited part of her estate automatically. Kevin McCormally: But without either of those? Jane Clark: Without either of those he has left out Nicole. Kevin McCormally: Thank you very much, Jane.