Nobody thinks their estate plan will turn into a court battle. But every year, famous people with real money end up in probate fights that could have been avoided. Their stories make the point better than any lecture. Here are the six mistakes, and how you can avoid them.

Mistake One: Waiting Until It Is Too Late (Prince)

Prince died in 2016 with no will. His sister went to court asking for an administrator for an estate worth many millions. Dozens of people came forward claiming to be half-siblings. Months of court time went to figuring out who the heirs were. A will would have settled the heirs in one sentence.

He was not alone. Sonny Bono died in 1998 with no estate plan. Steve McNair died in 2009 with no written plan for his wife or children from another relationship. Howard Hughes died with an estate near $2.5 billion and no valid will, so it was passed to his cousins.

The lesson is simple. Do not wait. The biggest cost in these stories was not the wealth lost, it was the missing document. Life insurance is the one piece that does not wait on probate. It pays out fast to the beneficiaries you name.

Mistake Two: Doing It Yourself (Aretha Franklin)

Aretha Franklin tried to write her own will. She left three handwritten documents, found in a locked cabinet and under a couch cushion. The papers did not agree with each other. Her family spent years and a lot of money in probate court sorting out which one counted. A jury finally decided.

A DIY document costs more than it saves. A standard will drafted by an attorney includes powers and language your handwritten pages usually miss. This is not the place to save a fee.

Mistake Three: No Plan for a Family Business (Jerry Buss and the Lakers)

Jerry Buss divided the Los Angeles Lakers among his six children and split the roles. Within a few years, one child fired another, and the family ended up in court over control of the team. Even a detailed transition plan was not enough to keep the peace.

A buy-sell agreement funded with life insurance is one of the cleanest ways to pass a business. The death benefit gives heirs who do not want to run the business the cash to sell their share, so the ones who do can run it without a fight.

Mistake Four: No Plan for Estate Taxes (Joe Robbie)

Joe Robbie set up a plan to keep the Miami Dolphins in the family. But when his widow made a choice Florida law allowed, a large estate tax bill came due with no cash to pay it. To raise the money, the family had to sell parts of the team and the stadium.

Estate taxes do not wait for a house or a business to sell. Life insurance is the classic fix for exactly this. It delivers liquid cash at death to pay the tax and keep the asset in the family.

Mistake Five: Out of Date Documents (Heath Ledger)

Heath Ledger's will was from 2003. His daughter was born in 2005. When he died in 2008, her family had to push to make sure she was not left out of his estate.

A will written years ago may not match who is in your life now. After any big change, a child, a marriage, a divorce, a new business, review both your will and your beneficiary designations. They are two separate documents, and both go stale.

Mistake Six: No Plan for Incapacity (Casey Kasem)

Casey Kasem developed dementia, and his family spent years in court over who would make his care decisions. The fighting did not stop at his death.

A health care proxy and a durable power of attorney name who makes your medical and financial decisions before you need them. It keeps the family out of the courtroom when you cannot speak for yourself.

The Bottom Line

You do not need celebrity wealth for any of this to hurt. A simple estate plan, a current will, a health care proxy, updated beneficiaries, and the right life insurance under the right ownership handle the money and the liquidity a good plan needs.

I represent the leading insurance companies and can shop the marketplace for the life insurance pieces of your plan. For the legal documents, work with an estate planning attorney. Together, the two keep your family out of the situations above.

If you want help with the life insurance side of your estate plan, I would be glad to help.

Inspired by an Advanced Underwriting Consultants "Think About It" newsletter (#606).