Dianne Feinstein, the longest-serving female United States senator in history, passed away in September at the age of 90. First elected to the Senate in 1992, Feinstein leaves behind a political legacy that spanned nearly 31 years. She also left behind an estate worth tens of millions of dollars.
Celebrity Estate Lessons from Dianne Feinstein
Although a large amount of her wealth came from her marriage to the late billionaire financier Richard C. Blum, Senator Feinstein was also successful in her own right. During their marriage, Feinstein and Blum established a marital trust that is now the subject of a fierce legal battle between Feinstein’s daughter and Blum’s three daughters.
A judge ordered the dispute resolved in private mediation. While this could keep the final resolution outside public view, the legal drama offers lessons illustrating the need for careful estate planning in blended families.
Feinstein’s Assets and Estimated Worth
One of the Senate’s wealthiest members, Feinstein boasted personal net worth estimated at around $70 million. A financial disclosure form filed in May showed that she owned millions in a blind trust, several large bank accounts, and a multimillion-dollar condo in Hawaii. She also owned a mansion in Washington, DC, worth more than $7 million and a private jet that averages more than $61 million if purchased used.
Marital Trust and Legal Dispute
Feinstein and Blum married in 1980 and lived together in California, a community property state, until Richard’s death in 2022. Feinstein had one daughter, Katherine, with a previous husband. Blum had three daughters from a prior marriage.
As the only daughter of Senator Feinstein, Katherine inherits all her mother’s personal wealth. She also stands to benefit from one-quarter of the estate left by Feinstein and Blum. But how much of that Katherine receives may depend on the outcome of a messy estate dispute.
Upon Blum’s death, the trustees were required to fund assets into a marital trust to provide for Feinstein during her lifetime. The marital trust would be for the benefit of Dianne until her death, at which point Blum’s daughters would receive the remaining money and property.
Three lawsuits were filed prior to Dianne’s death, with Katherine serving as agent under a power of attorney. Even after Dianne’s death, the lawsuits continue. They contain allegations of elder abuse, failure to properly fund the marital trust, and failure to reimburse Senator Feinstein for her medical expenses. One of the specific allegations is that the Stinson Beach home should have been sold but was instead used by Blum’s daughters at Feinstein’s expense.
The lawsuits could be put on hold temporarily while Feinstein’s estate is probated. Katherine, however, should be able to continue her claims, possibly in a new role as executor of Feinstein’s estate. Shortly before the Senator’s death, a California judge ordered the lawsuits to be settled through mediation.
Estate Planning Takeaways from the Dianne Feinstein-Blum Family Feud
- Blended families, or stepfamilies, are increasingly becoming the norm. Around half of US families are now remarried or recoupled.
- While any family can succumb to infighting over inheritances, blended families may be more prone to disputes, especially when one spouse dies and the surviving spouse and children have differences of opinion. Significant assets, like those in the Feinstein-Blum estates, can further raise the stakes among heirs.
- The Feinstein-Blum estate plan is what estate planning attorneys characterize as a “yours, mine, and ours” plan, which deals with respective children differently and is common in blended families. However, careful planning is needed to prevent conflicts of interest in this type of arrangement.
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