Controlling Elvis' Legacy

While Priscilla and Riley have reached agreement over control of Lisa Marie’s trust, it is an important reminder that controlling one’s legacy is critical. Control over Lisa Marie's trust, and Elvis' Memphis estate, Graceland, highlights that determining who controls a family trust and transitioning that control in the event of death, disability, asset protection and family law risks is becoming more important for families addressing their estate and legacy plans. Especially, where there is significant wealth and wealth is to be transferred within the family.

When Elvis died in 1977, he left everything to Lisa Marie at the age of nine. This included Graceland and his wider estate, which, was estimated between US$400 million to $US500 million. Upon turning 25, Lisa Marie inherited Elvis’ wealth and she then set up her own living trust and appointed trustees to manage her inheritance which included Priscilla. Following Lisa Marie’s death, Priscilla discovered that Lisa Marie had amended her trust that removed Priscilla and appointed Riley and her brother, Benjamin as co-trustees.

Sadly, Benjamin died, and the amendment meant that Lisa Marie's trust, including Graceland, was solely controlled by Riley resulting in the dispute between Priscilla and Riley.

Priscilla did not want Riley to act as trustee without her. The 2010 trust permitted Priscilla and Riley to act as co-trustees. The 2016 trust permitted Riley to act as sole trustee. With most parents or grandparents, there are generally good reasons for children or grandchildren not to have immediate control (until they are of age and financially capable) including:

• misappropriated assets from financial predators

• family divorce or separation

• spendthrift of assets

• bankruptcy

• family disputes/challenges

Regardless of Priscilla’s reasons, Lisa Marie had wanted her legacy and that of Elvis to be controlled by her children. Added to the complexity of control, Lisa Marie's ex, Michael, applied for and won full custody of Riley’s sisters Harper and Finley (15 years old), which Lisa Marie had fought against Michael prior to her death. Priscilla had maintained a close relationship with Michael which allegedly raised concerns that Priscilla and Michael may gang up on Riley.

The issues faced by Priscilla and Riley is not uncommon and is a timely reminder that if control of one’s legacy is not adequately addressed and planned, then it is likely to cause tension in family relationships and possibly lead to significant family disputes that are time consuming and costly to resolve.

Albus legal advises on legal issues including estate planning, asset protection, trusts, taxation, self-managed superannuation fund and charities with a key focus on preserving wealth, legacy planning and transferring wealth to future generations.