Musician Aaron Carter, a former child pop star and younger brother of Backstreet Boys singer Nick Carter, died in November. He was 34 years old. His untimely passing is one of the more tragic celebrity deaths of 2022. What’s more, it is one of the messiest from an estate planning perspective. The late singer, who struggled with substance abuse and family discord, died unmarried and without a will. This raises questions about the value of his estate. Further, it introduced the questions of who will inherit his remaining fortune, and who will provide care for his young child.
Aaron Carter’s Lack of an Estate
Aaron’s one-year-old son stands to legally inherit everything. Furthermore, other family members said they do not plan to dispute his inheritance. However, the issue remains over who will manage his son’s money until he comes of age. Because Aaron lacked an estate plan, the court will decide the matter.
Aaron Carter — From Child Stardom to Bankruptcy
Aaron Carter failed to achieve the stardom of his older brother Nick. Nevertheless, he succeeded as a performer in his own right. He opened for the Backstreet Boys at age nine. Also, shortly thereafter, he landed a record deal. His career included television and Broadway appearances. Ultimately, Aaron made over $200 million before turning 18.
Drawbacks of Aaron Carter’s Celebrity
Unfortunately, growing up as a celebrity introduced difficulties. Despite a decade of nearly nonstop touring and music making, he learned at age 18 that his back account contained just $2 million. What’s more, he discovered that he owed around $4 million in taxes. In 2013, hoping to start fresh, he filed for bankruptcy. His net worth at the time was just over $8,000. His liabilities totaled more than $2.2 million.
Mishandling Aaron Carter’s Money
Aaron blamed his parents for mishandling his money. Their actions left him in a financial hole from which he never emerged. Under California’s Coogan Law (designed to protect child performers from unscrupulous parents), Robert and Jane Carter were obligated to save 15 percent of the young star’s money into a special trust account. Known as a Blocked Coogan Trust Account, it should have remained until he came of age. New York, Illinois, Kansas, Louisiana, Nevada, New Mexico, North Carolina, Pennsylvania, and Tennessee passed similar laws.
However, Aaron told Oprah Winfrey in 2016 that his parents failed to set aside the required funds. He also accused his mother of withdrawing funds from his bank account. Aaron publicly feuded with family. The family was estranged at the time of his death.
Dying Intestate and California Succession Law
According to media outlets, Aaron died sans will. This despite the fact attorneys advised him to make one after his son’s birth. Dying intestate—the legal term for having no will—means that his estate remains subject to California intestate succession law.
Unmarried Intestate: Aaron Carter Case Study
Because Aaron remained unmarried, his entire estate passes to his son, Prince. Jane Carter reports the family is on agrees with this. TMZ estimated the value of Aaron’s estate at $550,000, including the Lancaster, California, home where he was found dead.
Ultimately, the court could order:
- The court would create a guardianship and Prince’s money must be turned over to the guardian.
- The County Treasurer must invest the money.
- The court would deposit the money must be deposited into a blocked account or a single premium deferred annuity. Withdrawals will be permitted only by court order.
- All or part of the money must be turned over to a custodian under the California Uniform Transfers to Minors Act. This stipulates a court-appointed custodian will manage the minor’s account without a guardian or trustee until the minor turns 18.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
