We have repeatedly warned of the dangers of dying without a will. There are many times when those who die intestate leave behind a legacy of familial strife because of disagreements regarding how to divide the property that the decedent left behind. These disagreements are most common in situations where a decedent remarries and the children from the previous marriage have a strained relationship with the new spouse. The drama which recently unfolded after the death of Whitney Houston's father illustrates this all-too-common problem.

Whitney loaned substantial amounts of money to her father, which he repaid by taking out a million dollar life insurance policy and making Whitney the beneficiary. Life insurance policies are one of many shrewd estate planning tools which can allow family members to repay debts and pay estate taxes without selling off assets. It is unclear what loans the life insurance policy was meant to pay off however, which provided the seed for a series of lawsuits between Whitney and her step-mother.

In this case, Whitney Houston's collection of the life insurance proceeds angered her step-mother, who felt that the money was intended to pay off the mortgage. The step-mother sued Whitney after Whitney refused to pay off the mortgage on her father's home with the proceeds. It is unclear whether the life insurance policy was for the repayment of the mortgage or other loans, which could have been made explicit with a better crafted will.

Whitney not only refused to pay off the mortgage on her father's home, but she counter-sued her step-mother and demanded that the step-mother repay the mortgage with interest to the tune of $1.6 million. The step-mother lost that lawsuit and was denied an appeal, so she may lose her home soon. The battle between the diva and her step-mother is a great cautionary tale because the litigation could have been prevented with proper estate planning.

Source: Trial and Heirs, "Whitney Houston Denies She's Broke; Wins Lawsuit vs. Step-Mom," Danielle and Andy Mayoras, Jan. 31, 2012