(News Nine) - New Delhi: Matthew Perry, best remembered for his role as the snarky, wisecracking Chandler Bing on the sitcom “Friends,” died on Saturday at the age of 54.
He left a whole community of fans and a sizable estate.
The actor’s most famous role contributed significantly to his fortune. Syndication and streaming revenue are said to bring in $20 million per year.
No comments from Warner Bros.
A representative for Warner Bros., which owns the distribution rights to the show, refuses to confirm or comment on the residual payments. Perry’s representatives could not be reached for comment.
When an actor dies, residual monies become the actor’s personal property. This remaining cash flow source is now most likely owned by his estate
According to Charlie Douglas, a licenced financial advisor and president of HH Legacy Investments in Atlanta, there are three possibilities for the inheritance of Perry’s “Friends” residuals based on California rules.
The Screen Actors Guild-American Federation of Television and Radio Artists has contracts that allow its members to name beneficiaries for residual earnings in the event of death. Perry may have listed an individual or individuals as an option here. It’s similar to naming a beneficiary for typical sorts of accounts like 401(k)s or individual retirement plans.
According to Douglas, Perry might have selected a trust as the beneficiary of his residual payments rather than an individual. The residuals would be directed to the trust, which would then specify who received them.
Unlike wills, which are public records in probate, trusts are secret, thus the public may never know who inherits Perry’s “Friends” income.
However, there is a third possibility: Perry did not name a beneficiary. In this situation, his estate plan would be determined by state law.
“It’s quite possible that, not having a spouse or children, he didn’t [write in] anything,” Douglas went on to say.
Every state has a structure that governs how your money and possessions should be allocated when you die. These are known as intestacy laws, and they differ from one state to the next.
According to Douglas, this is the traditional inheritance hierarchy in most states, in order of who stands to get assets: first the spouse, then children, grandkids, parents, and finally siblings.
Perry was never married and had no children. Perry is survived by his parents, who separated when he was less than a year old and have since remarried, as well as five half siblings.
Matthew Perry’s parents might get his money
According to Tasha Dickinson, trusts and estates partner at Day Pitney, Perry’s parents will likely get his acting income as well as other elements of his legacy, including his 2022 memoir.
If this is the case, his parents could sign a “qualified disclaimer” relinquishing their rights to the residuals, in which case the money would go to his half siblings, according to Douglas.
“It’s not unheard of at all that wealthy parents make disclaimers,” he went on to say. Perry’s stepfather, for example, is Keith Morrison, an award-winning television journalist and long-time correspondent for NBC’s “Dateline.”
Otherwise, Perry’s assets will be distributed in accordance with the probate court procedure. “Probate is especially unpopular in California because it’s expensive, time-consuming, and an invasion of privacy [because] all court matters are public record,” said David Oh, Arta Finance’s head of tax and estate planning.
“Not having an estate plan creates confusion, attracts unwanted media attention, and can cause family disputes,” he added, referring to superstars like Perry.
Perry may have potentially chosen to leave his estate to someone other than his family.
He had deep personal and professional contacts, as well as various humanitarian interests, “and it wouldn’t be surprising to see some of his wealth go towards them,” Oh added. The actor, who has openly battled addiction for years, once created a sober living facility at his Malibu estate and was planning to establish a foundation for addiction disorders.
On November 3, the Matthew Perry Foundation was created as a donor-advised fund in his honour. National Philanthropic Trust sponsors and manages the charity.
By Saloni Jha
November 4, 2023
