What’s Going to Happen with O.J. Simpson’s Estate?

What’s Going to Happen with O.J. Simpson’s Estate? Episode 280 – The death of O.J. Simpson in April raises a lot of questions. How much money did he really have? And where will it all go? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 280 Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, what’s going to happen with O.J. Simpson’s estate? The unexpected death of the controversial football legend on April 10 has raised a number of questions. Simpson had been ill with prostate cancer for quite a while, but this was not publicly known. One of the biggest remaining questions is what’s going to happen with the money he owes? Simpson, of course, was accused and acquitted in the 1994 murders of Nicole Brown Simpson and Ron Goldman. But in 1997, he was found liable in a civil suit from Goldman’s family, and there was a judgment against him for $33.5 million. The judgement against Simpson remains unpaid to this day.[1] He later served prison time on an unrelated matter. The executor of the estate is Las Vegas-based attorney Macolm Lavergne, who had been one of Simpson’s personal lawyers. He created some controversy, when, a few days after Simpson’s death, he told the Las Vegas Review-Journal, “It’s my hope that the Goldmans get zero, nothing. Them specifically. And I will do everything in my capacity as the executor or personal representative to try and ensure that they get nothing.”[2] An estate executor is generally paid a fee based on the size of the estate. As executor, Mr. Lavergne has a fiduciary duty to act in the best interests of the estate. Lavergne’s remarks created a significant public backlash. This may have been what prompted him to soften his rhetoric a few days later. A seemingly remorseful Mr. Lavergne later added, “I’m walking back those remarks, and I will deal with Fred Goldman’s claim in accordance with Nevada law.”[3]  On the other side, the Goldman family’s attorney says that the $33.5 million judgment from 1997 has actually ballooned to $114 million because of accumulated interest. The amount is believed to be far in excess of Mr. Simpson’s assets.[3] Under Nevada law, before they can make any payment toward the Goldman family judgment, the estate will have to pay other costs such as funeral expenses, estate administrative expenses and other debts. All of which raises an interesting dilemma. Can the executor of O.J.’s estate, as a fiduciary, do anything to prevent the Goldman family from collecting anything? Some legal experts don’t think so. If he were to refuse to pay the Goldman family, Mr. Lavergne could be in violation of his fiduciary duty and he could be personally liable.[1] Mr. Lavergne seems to have figured this out after his controversial initial statement, thus he decided to soften his rhetoric. He tried to explain himself by implying that in his previous statement he was acting as Mr. Simpson’s personal attorney. Now he is representing the estate.[3] Either way, he still has to comply with the law. He also seemed to suggest that there wasn’t much money in Simpson’s estate to begin with, and that there was an additional debt to the IRS.[3] So, as executor, it seems unlikely that Mr. Lavergne can do anything of significance to freeze out the Goldman family. The question now turns to how much, if any, money will be left for them  to collect. For the rest of us, all this highlights how careful we need to be when we select an executor for our estate. It’s a tough job! [1] Lenok, David H. “Can O.J. Simpson’s Executor Stiff-Arm the Goldman Family?” wealthmanagement.com. https://www.wealthmanagement.com/estate-planning/can-oj-simpson-s-executor-stiff-arm-goldman-family?NL=WM-27&Issue=WM-27_20240416_WM-27_842&sfvc4enews=42&cl=article_1_b&utm_rid=CPG09000007289133&elq2=0c7305f88d634288863e4756a63d0159&oly_enc_id=0906G4469178C2U&sp_eh=e38021e391e487f91ac04b2444f3959990701bef0e3ac2b2ecc63d78be83a570 (accessed April 17, 2024). [2] Newberg, Katelyn. “O.J.’s executor says he wants Goldmans to get ‘zero, nothing’ from estate.” Las Vegas Review-Journal.https://www.reviewjournal.com/crime/courts/o-j-s-executor-says-he-wants-goldmans-to-get-zero-nothing-from-estate-3033152/ (accessed April 17, 2024). [3] Newberg, Katelyn. “O.J.’s executor walks back ‘harsh remark,’ says he will work with Goldmans.” Las Vegas Review-Journal. https://www.reviewjournal.com/local/local-las-vegas/o-j-s-executor-walks-back-harsh-remark-says-he-will-work-with-goldmans-3034389/ (accessed April 17, 2024). 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