Not Johnny Depp? You Still May Need Asset Protection

The actor was living a $2 million-a-month life of luxury, but then a fallout with his manager led to an eye-popping lawsuit and countersuit.

A pair of multimillion-dollar lawsuits involving Johnny Depp’s assets and their protection, or lack thereof, has brought to light the importance of having a strong estate plan with asset protection built in. With 15 million lawsuits filed annually in the U.S., protecting your family’s legacy and assets has become increasingly important if you have high net worth.

This is what happened to Depp: In 1999, the star of Pirates of the Caribbean, Edward Scissorhands and other iconic Hollywood films hired The Management Group (TMG) to handle his expenses as his business manager. By then Depp had become an established, very wealthy actor who led a lifestyle that included 14 homes, a $75 million yacht and $30,000 a month for wine. Depp’s lifestyle cost him in excess of $2 million per month, which was exceeding his cash flow, his business managers later alleged in court documents.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up
Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

Jeffrey M. Verdon, Esq.
Lead Asset Protection and Integrated Estate Planning Partner, Falcon Rappaport & Berkman

Jeffrey M. Verdon, Esq. is the lead asset protection and tax partner at the national full-service law firm of Falcon Rappaport & Berkman. With more than 30 years of experience in designing and implementing integrated estate planning and asset protection structures, Mr. Verdon serves affluent families and successful business owners in solving their most complex and vexing estate tax, income tax, and asset protection goals and objectives. Over the past four years, he has contributed 25 articles to the Kiplinger Building Wealth online platform.