Where Will Matthew Perry’s $120 Million Estate Go?
Before his death last month, Matthew Perry had acquired millions in wealth after a decades-long career in acting, most notably playing the beloved Chandler Bing character on Friends.
With an estimated net worth of $120 million, and $20 million coming yearly in residuals from Friends playing in syndication, many are wondering where his money will go. Each episode Perry filmed for Friends for its last season earned the actor a whopping $1 million.
Perry, 54, died of an apparent drowning on October 28 after a lifetime struggle with Vicodin and alcohol addiction. Because he lived in California and had no spouse or children, his parents are next in line for his estate and earnings. After his parents, Perry’s siblings would be next.
Due to a heavy estate tax, with the current exemption being set at $12.92 million, a total of $107 million will still be subject to a tax of up to 40 percent, financial planners say. But that still leaves a substantial amount of money, even if he didn’t specify where the fortune would go.
“This is precisely why I forcefully encourage my clients, friends and family to come up with even a basic estate plan,” Robin Snell, the owner and chief of planning at Nested Financial, told Newsweek.
According to Pattie Ehsaei, a financial literacy expert who runs the Duchess of Decorum TikTok channel, there are four distinct possibilities for what happens to Perry’s fortune.
“He may have named beneficiaries for the residuals, retirement accounts,” Ehsaei told Newsweek. “There may also be a trust, and that would be administered privately, through his trustee. He could have a will, which would be administered under probate court supervision. If he had none of the above, state law dictates how his assets are distributed.”
Typically, when someone dies without any heirs or a will, the assets go through a legal process called intestacy, which is based on state-specific laws.
“It might go to distant relatives or, in some cases, to the state if no heirs are found. It’s advisable to create a will to specify your preferences for asset distribution even if heirs don’t exist,” Snell said.
For Perry, creating a trust would have been ideal because his estate has perpetual income from his Friends syndication residuals.
“Creating a trust can be important without heirs for several reasons,” Snell said. “A trust allows you to designate beneficiaries who may not be direct heirs, such as friends, charities or organizations. This ensures that your assets go to individuals or causes you care about.”
Trusts can also help you avoid probate, which is a legal process that can be time-consuming, privacy-invading and costly, Snell said.
“By placing assets in a trust, they can be distributed more efficiently and privately, without the need for court involvement,” Snell added.
Trusts generally enable you to control exactly how any assets will be managed and distributed, allowing you to specify detailed instructions on when and how beneficiaries will receive their inheritance.
Perry is survived by his mother, Suzanne Morrison, father, John Bennett Perry, stepfather, Dateline journalist Keith Morrison, and five half-siblings from his parents’ second marriages.
“We are heartbroken by the tragic loss of our beloved son and brother,” the family said in a statement. “Matthew brought so much joy to the world, both as an actor and a friend. You all meant so much to him, and we appreciate the tremendous outpouring of love.”
How to Create a Will
Many never create a will, believing it’s not necessary unless they have a massive fortune like Perry. According to LegalZoom, roughly 70 percent of Americans have never drafted a will. However, financial experts say that’s a mistake.
“Even if you are not a millionaire, not having a trust or a will is dangerous because your assets will not be distributed according to your desires but according to state law,” Ehsaei said. “You’re leaving it to a judge to decide the fate of your assets, which may result in your most beloved family member not receiving a penny.”
Setting up a will is relatively simple and inexpensive, meaning even those who have limited savings and net worth should still look into drafting one. Those who can afford it should also hire an estate attorney, Ehsaei said.
However, there are other options for those who don’t have the financial means to pay for one. This includes various free or low-cost templates online from sites like LegalZoom and Rocket Lawyer.
Typically, creating your will includes picking an executor, or the person in charge of your estate. You also should write up a record of all your property, including any debt. That means all your land, houses, bank accounts, investments and inheritances.
Wills have listed beneficiaries, who receive a certain amount of your estate based on your specific stipulations. You should also consider what will happen to your children and pets, and write it out on paper so that your executor has the full directions according to your wishes.
To make sure your will won’t be contested, make sure to sign it in front of witnesses who can vouch for it after you die.
“Even for those who aren’t multimillionaires, a will is vital for ensuring that their assets are distributed according to their wishes and that their legacy is honored as intended,” Markus Kraus, the owner of Trading Verstehen, told Newsweek. “It also simplifies the legal process for surviving relatives or friends, preventing potential conflicts and lengthy court procedures.”
