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Last week in part one of this series we discussed how Hsieh became an Internet pioneer, starting two wildly successful companies, LinkExchange and Zappos, the latter of which he sold to Amazon for $1.2 billion. It was as CEO of the online shoe brand Zappos where Hsieh developed his vision for life and business: delivering happiness.

Hsieh outlined this mission in the 2010 book, Delivering Happiness: A Path To Profits, Passion and Purpose, which became a New York Times number-one bestseller. Yet while the young entrepreneur was busy bringing joy to his customers, employees, and friends, Hsieh was privately coping with mental health issues and substance abuse. These struggles reportedly intensified in 2020, as the pandemic-related quarantines put an end to the non-stop parties and socializing Hsieh came to crave.

Hsieh’s downward spiral also coincided with his relocation from Las Vegas to Park City, Utah. In Park City, Hsieh became further isolated from longtime friends, surrounding himself with a new group of friends, many of whom were reportedly much younger than Hsieh and encouraged his escalating use of drugs, including ketamine, ecstasy, and nitrous oxide.

Further complicating matters was the fact that many of Hsieh’s new friends had moved to Park City after Hsieh promised to double their highest salary if they would relocate with him and assist with his efforts to revitalize the downtown area of the ski-resort town.

The Wall Street Journal reported that the walls of Hsieh’s Park City mansion were covered in thousands of color-coded sticky notes, which Hsieh used to record financial commitments he made to employees, friends, and local businesses. What’s more, Hsieh reportedly purchased dozens of properties in Park City, including homes, condos, and businesses, all of which were owned through a number of limited liability companies (LLCs).

In August, Hsieh announced that he was retiring as CEO of Zappos, which he had run largely autonomously for more than a decade after selling the company to Amazon in 2009. Around that same time, family members and friends worried about Hsieh’s increased drinking and drug use, reportedly staged multiple interventions in an attempt to get him professional help.

Although reluctant at first, Hsieh eventually decided he would seek treatment for his addictions. According to the Wall Street Journal, Hsieh was going to check himself into a rehab facility in Hawaii following the Thanksgiving holiday, which he planned to spend with his girlfriend in Connecticut. Sadly, Hsieh would never make it to Hawaii, as he perished from injuries he suffered after being pulled unconscious from a house fire in the early morning hours of November 18th.

During his visit to Connecticut, Hsieh stayed in a waterfront home in New London, with his longtime girlfriend and former Zappos executive, Rachael Brown, as well as his brother, Andy Hsieh. According to property records, Hsieh purchased the $1.3 million home for Brown in August 2020, but it was a likely vacation home, as Brown reportedly lived with Hsieh in Park City, according to the Las Vegas Review Journal.

It remains unclear what started the fire. Based on reports from the Wall Street Journal, at some point in the evening, Hsieh told others in the house that he was going to a storage shed that was attached to the home, and that they should check on him regularly throughout the night. From there, Hsieh apparently locked himself—either intentionally or by accident—in the storage room and wasn’t seen or heard from again.

When firefighters arrived on the scene around 3:30 am, they found smoke billowing from the storage area at the back of the house where Hsieh was located. The others staying in the house told first responders Hsieh was locked inside the shed and was not responding to their pleas for him to come out. Firefighters were forced to break through the door into the storage area, where they found Hsieh lying unconscious.

Paramedics performed CPR on Hsieh at the scene, and then he was flown to a local hospital, before being relocated to the Bridgeport Hospital Burn Center, where he ultimately died nine days later on November 27th—just two weeks before his 47th birthday. Because the investigation into the fire is still ongoing, local authorities are not releasing any information about the suspected cause of the fire, but they maintain Hsieh’s death was accidental and caused by complications from smoke inhalation.

Hsieh is survived by two brothers and his parents. Just a week after his death in early December, a judge in Clark County, Nevada, granted a motion filed by Hsieh’s father, Richard, and his older brother, Andrew, to be named co-special administrators and legal representatives for his estate. In the ruling, the judge ruled that Hsieh’s personal and business affairs “require immediate attention to prevent loss to the estate.”

According to court reports, Hsieh’s family was unclear whether or not he had a will or any other planning documents. His father and brother sought to be named administrators of his estate, so they could access his safety deposit boxes and speak with his lawyers and other associates in order to determine if he had made any plans for how his assets should be managed upon his death.

Although Hsieh had moved to Park City earlier in the year, he was still listed as a resident of Nevada. This means that if no will is found, all $840 million of Hsieh’s assets will be distributed under Nevada’s intestate succession laws. According to those laws, Hsieh’s mother and father stand to inherit his entire estate.

However, before any of his assets can be transferred, they must first be located. Given the immense size and scope of the assets Hsieh likely accumulated over his lifetime, just identifying everything he owned will likely take his loved ones several months or even years. Depending on the type of records Hsieh kept, it’s quite likely that some of his assets will never be located, and instead of passing to his family or funding one of Hsieh’s favorite philanthropic causes, those assets will end up in the state Department of Unclaimed Property.

In addition to locating his assets, Hsieh’s family must also pay off any debts or liabilities Hsieh incurred during his lifetime. And this process will undoubtedly be extremely complicated due to his penchant for doubling his friends’ salaries in exchange for relocating to Park City with him.

Each one of the thousands of sticky notes covering the walls of Hsieh’s mansion in Park City could potentially be considered a valid contract, and if so, each of those individuals could have a claim against his estate. To complicate matters even more, it’s highly likely that there will be questions as to whether Hsieh was in a sound state of mind during his final months and if he had the mental capacity to even make binding contracts.

Hsieh’s failure to use formal legal agreements to govern his business relationships will undoubtedly lead to bitter court battles, pitting his family against some of the so-called “friends” Hsieh surrounded himself with during his final months.

Furthermore, Hsieh’s recent spending spree on real estate and businesses in Park City, much of it done through multiple LLCs, will also need to be sorted through. This will be a particularly lengthy and expensive process given that his loved ones must deal with the court process of probate not only in Hsieh’s home state of Nevada, but in every state he owned property in.

Finally, once all of Hsieh’s debts and creditors have been paid via probate, whatever remains of the estate will be subject to the federal estate tax before it can pass to his parents. The estate tax is not a factor for most people, as the tax code provides for a hefty exclusion that can be used to transfer a certain amount of wealth tax free to your heirs upon your death.

Yet given Hsieh’s massive fortune, his family will be hit with a tax bill that could potentially run in the hundreds of millions. Based on the federal estate tax exclusion for 2021, the first $11.7 million of Hsieh’s estate will pass tax-free to his family, but whatever remains of his $840 million estate after probate will be taxed at a whopping 40% rate.

Following Hsieh’s death, his family released a statement to the press that read in part, “The Hsieh family hopes to carry on Tony’s legacy by spreading the tenets he lived by—finding joy through meaningful life experience, inspiring and helping others, and most of all, delivering happiness.”

While Hsieh’s sudden death is certainly tragic, hopefully it serves as a wake-up call, reminding us all that we never truly know how much time we have left or when the end will come. To honor Hsieh’s legacy and deliver happiness to those you love most, meet with us to put your plan in place today.

Whether you already have a plan created or nothing at all, we’ll find the specific planning strategies best suited for your life situation and asset profile. With us as your Personal Family Lawyer®, you’ll have access to the same planning tools those in the Fortune 500 use, which are designed to keep your family out of court or conflict no matter what happens. Contact us today to get started.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Family Wealth Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

Watching your kids leave home to attend college or start their career can be an emotional time for you as a parent. On one hand, moving out on their own is a major accomplishment that should make you proud. On the other hand, having your kids leave the nest and face the world can also induce anxiety and fear.

Regardless of your feelings, once they reach age 18, your kids become legal adults, and many areas of their lives that were once under your control will be solely their responsibility. And one of the very first items on their to-do list as new adults should be estate planning.

While you may believe that planning is the last thing your kids need to be thinking about, it’s actually the first, because once they turn 18, you no longer have automatic access to their medical records and/or financial accounts should anything happen to them.

Before your kids head out on their own, you should discuss and have them sign the following three documents:

Medical power of attorney is an advance directive that allows your child to grant you (or someone else) the legal authority to make healthcare decisions for them in the event they become incapacitated and cannot make such decisions for themselves.

For example, medical power of attorney would allow you to make decisions about your child’s medical treatment if he or she is knocked unconscious in a car accident or falls into a coma due to an illness. And with a properly drafted medical power of attorney, you will be able to access your child’s medical records, whereas without one you would not.

Should they become incapacitated without a properly executed medical power of attorney,  you’d have to petition the court to become their legal guardian. While a parent is typically the court’s first choice for guardian, the court process can be slow—and in medical emergencies, every second counts.

Whereas medical power of attorney allows you to make healthcare decisions on your child’s behalf during their incapacity, a living will provides specific guidance about how your child’s medical decisions should be made while they’re incapacitated, particularly at the end of life.

For example, a living will allows your child to let you know if and when they want life support removed, if they ever require it. In addition to documenting how your child wants their medical care handled, a living will can also include instructions about who should be able to visit them in the hospital and even what kind of food they should be fed. For example, if your child is a vegan, vegetarian, gluten-free, or takes specific supplements, these things should be noted in their living will.

If your child has certain wishes for their medical care, it’s important you discuss these decisions with them and have those wishes documented in a living will to ensure they’re properly carried out.

Should your child become incapacitated, you’ll also need the ability to access and manage their finances, and this requires your child to grant you durable financial power of attorney.

Durable financial power of attorney gives you the immediate legal authority to manage their financial and legal matters, such as paying bills, applying for Social Security benefits, and/or managing banking and other financial accounts. Without this document, you’ll have to petition the court for such authority.

As parents, it’s natural to experience anxiety when your kid leaves home, but you’ll at least have peace of mind knowing that he or she will be well taken care of in the event of an unforeseen accident or illness. Contact us today to ensure that if your child ever does need your help, you’ll have the legal authority to provide it.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Family Wealth Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

Taking on business debt can help small businesses meet expenses and finance growth. The key to making it work is knowing specifically what you will use the debt for, how it will generate a return on your debt investment and tracking, tracking, tracking.

If you need support with finding capital for your business and tracking the use of that capital, contact us — we can help.

And, if you have not done a great job with this in the past and your debt gets too hard to manage, you may be faced with some difficult decisions.

With proper guidance, however, you can minimize the financial consequences and maximize the opportunity of taking on and managing your small business debt.

Do a Google search for “digital wills” or “online estate planning,” and you’ll find dozens of different websites offering low-cost, do-it-yourself (DIY) and sometimes even free estate planning documents, such as wills, trusts, powers of attorney, and healthcare directives.

From LegalZoom® and Rocket Lawyer® to TrustandWill.com and FreeWill.com, these DIY legal documents may seem like a cheap and easy way to finally cross estate planning off your to-do list—and do so without having to pay a lawyer big bucks to assist you. After all, you’ve been able to prepare and file your taxes online for years, is estate planning really that much different? And aren’t lawyers using the very same forms you find on these DIY document websites?

This kind of thinking is exactly what DIY and online estate planning services would like you to believe, but it’s far from true. In fact, relying on DIY or online estate planning documents can be one of the costliest mistakes you can make for your loved ones. Keep in mind, just because you created “legal” estate planning documents that doesn’t mean they will actually work when you—or most importantly, the people you love—need them.

Without a thorough understanding of your family dynamics, the nature of your assets, and how the legal process works upon your death or incapacity, you are likely to make serious mistakes when creating a DIY estate plan. Even worse, these mistakes won’t be discovered until it’s too late—and the loved ones you were trying to protect will be the very ones forced to clean up your mess or get stuck in a costly and traumatic court process that can drag out for months or even years.

Last week, in part one of this series, we covered the first two ways DIY estate plans can fail, and here, we’ll cover the remaining three.

State laws are also very specific about who can serve in certain roles like executor, trustee, or financial power of attorney. In some states, for instance, the executor of your will must either be a family member or an in-law, and if not, the person must live in your state. If your chosen executor doesn’t meet those requirements, he or she cannot serve.

Furthermore, some states require the person you name as your executor to get a bond, which is like an insurance policy, before he or she can serve. Such bonds can be difficult to get for someone who has a less-than-stellar credit score. If your executor cannot get a bond, it would be up to the court to appoint your executor, which could end up being someone you would never want managing your assets or a third-party professional, who could drain your estate with costly fees.

Unless your family knows exactly what assets you own and how to locate and access those assets, that property is as good as gone when you die—and your online will won’t be of any use to your family. In fact, there’s currently more than $50 billion worth of unclaimed property sitting in the different state Departments of Unclaimed Property across the U.S. because a family member died and their loved ones lost track of their assets.

To ensure that none of your assets end up in our state’s Department of Unclaimed Property, and your family will know exactly what you have and how to find everything if something happens to you, it’s essential that you keep a regularly updated inventory of all your assets. As your Personal Family Lawyer®, we will not only help you create a comprehensive asset inventory, we’ll make sure it stays regularly updated throughout your lifetime.

Family dynamics are—to put it lightly—quite complex. This is particularly true for blended families, where spouses have children from previous relationships. A DIY service cannot help you consider all the potential areas where conflict might arise among your family members and help you plan ahead of time to avoid such disputes. Even the best set of documents will be unable to anticipate and navigate these complex emotional matters—but we can.

Every day we see families ripped apart due to poor estate planning. Yet, we also see families brought closer together as a result of handling these matters the right way. When done right, the estate planning process is actually a huge opportunity to build new connections within your family, and our lawyers are specifically trained to help you with that.

In fact, preventing family conflict with proactive estate planning is our special sauce and one of the primary reasons to work with us, as your Personal Family Lawyer®, rather than relying on DIY planning documents.

When it comes to estate planning, the documents you use are only as good as the understanding your lawyer has about your family dynamics, the nature of your assets, and how the law will apply to your situation upon your death or incapacity. And in most cases, you will need far more than just a few fill-in-the blank documents to properly address all of those complexities.

If you truly want things to be as simple as possible for the people you love when something happens to you, you want a trusted counsel who can prepare an estate plan that will achieve your desired objectives with a minimum amount of stress and conflict for the loved ones you are leaving behind, not just someone who has the best documents. This is where a Personal Family Lawyer® comes in.

If you’ve yet to do any planning, contact us, your Personal Family Lawyer® to schedule a Family Wealth Planning Session™, which is the first step in our Life & Legacy Planning Process. During this initial meeting, we’ll take you through an analysis of your assets, what’s most important to you, and what will happen to your loved ones when you die or if you become incapacitated.

If, as a result of this process, we determine that you really do have a very simple situation, and you want to create your own planning documents yourself online, we will support you to do that. However, if as a result of the process, you decide you would like us to draft a plan for you, we’ll support you to find the optimal level of planning for a price that’s right for you.

As part of our planning process, we will inventory all of your assets and ensure they are titled in a way that will keep your family out of court and out of conflict no matter what happens to you. Moreover, we take the time to get to know your family members and include them in the planning process, so everyone affected by your plan is well-aware of what your latest planning strategies are and why you made the choices you did, along with knowing exactly what they need to do if something happens to you. And if you are the parent of minor children, we will put safeguards in place to ensure that your kids are never placed into the care of strangers, even temporarily.

Finally, and perhaps most importantly, our Life & Legacy Planning process will ensure that it’s not just your money and tangible assets that get preserved and passed on, but also your family’s intangible legacy, which includes your family’s most treasured values, insights, stories, and mementos. We capture and record your family’s legacy using a unique process known as a Family Wealth Legacy Interview, which is included with every estate plan we create.

Ultimately, we’ve discovered that estate planning is about far more than planning for your death and passing on your “estate” to your loved ones—it’s about planning for a life you love and a legacy worth leaving by the choices you make today—and this is why we call our services Life & Legacy Planning.

As your Personal Family Lawyer®, we are specifically trained to educate, empower, and support you to make the right decisions for the people you love, and get to know what really matters most to you. Furthermore, because your plan is designed to protect and provide for your loved ones in the event of your death or incapacity, we aren’t just here to serve you—we’re here to serve your entire family.

In the end, as your Personal Family Lawyer®, our Life & Legacy Planning services go far beyond simply creating documents and then never seeing you again. We will develop a relationship with you and your family that lasts not only for your lifetime but for the lifetime of your children and their children if that’s your wish.

While the DIY approach might be a good idea if you’re looking to build a new deck for your backyard, when it comes to estate planning, it’s one of the worst choices you can make. Are you really willing to put your family’s well-being and wealth at risk just to save a few bucks? If you want to truly do right by those you love, contact us, to get your Life & Legacy Plan started today.

This article is a service of a Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Family Wealth Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.