Many people follow celebrities on social media, buy the products they endorse and are dedicated fans of their music, movies or the sports teams on which they play.

Sometimes we worship others who seem to have more glamorous, fascinating or more powerful lives than our own. Subconsciously, we may want to be like them. But we often forget that celebrities are just people, just like everyone else. They experience happiness, sadness, success and failure.

Public relations specialists create the illusion of glamor and lifestyles that seem perfect to the observer, but in reality, celebrities are full of human flaws.

One of the drawbacks of being famous is that one’s mistakes, just like one’s successes, take place in the public eye. But perhaps there’s a silver lining in that for the rest of us. Because we can clearly see the consequences of celebrities’ mistakes, we can learn important lessons from them … such as these:

Establish, fund your trust

Michael Jackson created a trust before his death in 2009, but for reasons unknown, it was never “funded” during his lifetime.

Funding the trust is the process of transferring assets to a trust. You must physically change the titles of your assets from an individual name to that of a trust. Assets funded in a trust will remain private vs. those in an estate that is not in a trust, which must pass through probate and become a matter of public record.

Because Michael Jackson’s assets were not transferred to the trust, a long and expensive battle in the California Probate Court ensued following his death to determine control of his estate.

Establish a will

Prince Rogers Nelson, the successful musician, entertainer and record producer known as Prince, died in 2016 without heirs and apparently without a valid will. Forbes estimated the value of his estate at more than $100 million.

Because Prince did not assert his right to decide who would and would not inherit shares of his estate, the courts follow state statutes to determine this for him.

Most likely, due to his lack of planning, a sizeable amount of money will go to some relatives with whom Prince had little contact and no interest in sharing the benefits of his life’s work.

Live within your means

Mike Tyson’s earnings at one point in his life hit $400 million, but a lavish lifestyle and poor investments drove him to bankruptcy. Tyson once owned fancy cars, expensive homes, a golden bathtub and some tigers. As quickly as the wealth came, it left. The former heavyweight champion declared bankruptcy in 2003.

At the height of his career, he could earn $30 million in one night. When he filed for bankruptcy, he had $23 million in debt and owed $13 million to the Internal Revenue Service.

Pay taxes on time

Many celebrities have been in trouble for tax evasion. The estate of Aretha Franklin recently settled a dispute with the IRS over federal income taxes she owed during her lifetime. The IRS said the singer’s estate owed more than $7.8 million in unpaid income taxes, plus interest and penalties from the last seven years of her life.

There was no lack of drama in the Queen of Soul’s estate, but the IRS has been the most relentless creditor, as reported in an article by the Detroit Free Press.

This year, both sides reached a tentative agreement over what had already been paid and the amount still owed. The agreement should not only speed up paying the remaining tax burden but also will finally give Franklin’s four sons some money from their mother’s fortune.

Whether you are a celebrity or not, having a team of qualified advisers — which may include your attorney, accountant, financial professional, property and casualty agent and banker — should effectively help you manage and protect your interests. Members of your financial team should not only have unique abilities and varied areas of expertise but must also be reliable and trustworthy.

Your advisers should understand your goals and expectations, providing advice, guidance, and follow-up as needed while being mindful of any conflicts of interest that could surface. Each team member should have a role based on their knowledge and expertise.

In the examples of the celebrities mentioned, there were serious flaws in planning. Clearly, they had the resources to afford a team of skilled advisers, but something went wrong. Maybe the celebrities were not listening or were too busy to follow advice from advisers, or maybe the advisers failed to work together to meet their clients’ needs. We will never know.

Let’s learn from the mistakes of others. Remember, life is your private journey, so align yourself with the best possible team and heed their advice for a successful financial future.

Teri Parker is a vice president for CAPTRUST Financial Advisors. She has practiced in the field of financial planning and investment management since 2000. Reach her via email at [email protected].

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