Call Our Office
(559) 384-2900 | Fresno
(619) 480-1413 | San Diego
Your Money
Your Life
Your Way
Article

Lessons from Johnny Depp's Other Lawsuits

Lessons from Johnny Depp’s Other Lawsuits

Protecting your assets is a very important part of any estate planning. With about 40 million lawsuits filed in the U.S. each year, protecting your family’s legacy and assets is getting harder and harder. There are a lot of lessons to be learned from Depp’s experiences.

May 3, 2022
Lessons from Johnny Depp’s Other Lawsuits
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

Actors Johnny Depp and Amber Heard are in a contentious defamation trial in a Virginia court. Depp and Heard were married from 2015-2017 (15 months) and Depp is suing Heard for $50 million over a 2018 op-ed she wrote for The Washington Post in which she described herself as a "public figure representing domestic abuse." Though Heard did not specifically name Depp in the article, he claims it cost him lucrative acting roles.

But it was another pair of lawsuits involving Johnny Depp's assets that might be more relevant to those questioning the importance of estate planning. Because with about 40 million lawsuits filed in the U.S. each year, protecting your family's legacy and assets is getting harder and harder.

The Other Depp Lawsuits

In 1999, Depp hired The Management Group to handle his expenses as his business manager. By then Depp had become a very wealthy actor who led a lifestyle that included 14 homes, a $75 million yacht and $30,000 a month for wine.

And as hard as it might be to believe, Depp's lifestyle cost him in excess of $2 million per month, which according to his business manager, was far exceeding his cash flow.

In January 2017, Depp hired a new business manager and conducted a financial analysis of his assets. During this analysis, he claimed to have discovered big investment losses made by The Management Group, so he filed a lawsuit seeking damages of $25 million.

The Management Group responded with a countersuit of their own alleging that early in Depp’s career, he borrowed $5 million from them to cover the expenses of his lifestyle and had allegedly defaulted on this loan. The countersuit sought to recover his loan by foreclosing on some of Depp's assets.

The lawsuits were eventually settled.

The Need for Estate Planning

There are a lot of lessons to be learned from Depp's experiences – and it's not that the rich are different.

If Depp had established an asset-protection plan, he could have ensured that his personal wealth was protected from any potential lawsuits. In effect, it would have placed his assets under the ownership of a trust.

Depp would not legally own the assets, as they would be owned by the trust itself – protected from any lawsuits brought against him.

Think About a Protective Trust

There's a lesson in that Johnny Depp saga: Protecting your assets and family's legacy should always be an important part of any comprehensive estate plan.

As such, you should consider placing your assets into a protective trust. And there are a few to choose from.

  • A Dynasty Trust: a trust established to remain in effect over multiple generations.
  • A Directed Trust: a trust where the trustee may delegate the investment activities to investment professionals.
  • A Foreign Asset Protection Trust:  a self-settled trust established in a non-U.S. jurisdiction under laws that are more protective than domestic trusts from lawsuits and other third-party claims.

Your Financial Advisor

There are a lot of considerations when selecting the right trust for your situation. For example, you want to make certain that the trustee has hired a reputable investment manager for your assets. In addition, you want to make sure the professionals and fiduciaries have the requisite checks and balances in place.

Your financial advisor can help you select the right trust for your circumstances. It’s part of your personal estate planning process.

“Not All Treasure is Silver and Gold Mate.”  ~ Captain Jack Sparrow

Other content you may like

  • Ranking the Best and Worst Presidents - Part I

    Ranking the Best and Worst Presidents – Part 1

    September 13, 2020
    What if we ranked the best and worst presidents simply by the performance of the stock market? Surely that would settle the debate as to which president was best for investors, right? Well, while it sounds easy there are a few big caveats to consider.
    Read this Article
  • Budget Tools

    6 Ways a Budget Can Help You Gain Control

    March 6, 2023
    Does the “Case of the Missing Money” sound like a popular mystery in your household? So often small purchases add up into bigger chunks of money that seem to disappear without an explanation. There is a way to gain more control of your personal finances. With these 6 simple action points you can get a handle on your income and expenses, so that you can build your savings and prepare for unexpected emergencies or large purchases or even a recession.
    Read this Article
  • Inflation Varies According to Your Age & Spending

    Inflation Varies According to Your Age & Spending

    August 3, 2021
    What will inflation be in the coming years? The headline Consumer Price Index is important only as a general gauge. It may not accurately reflect your individual inflation rate. This article looks at some inflation components for you to consider, to get a better picture of your unique personal inflation rate based on your age and spending habits.
    Read this Article
  • What's Driving the Market

    Podcast Highlight - Debt Ceiling Resolution

    June 21, 2023
    Congress recently passed a debt ceiling deal that is still being analyzed and politicized across the nation. The team gives their insight on what the fuss is all about and how the system works when a debt ceiling reaches an impasse.
    Read this Article
  • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    phone-handset