Anne Heche’s Estate: A Cautionary Tale for Every Family

On August 11, 2022, actress Anne Heche passed away after a tragic car crash in Los Angeles.

Best known for films like Donnie Brasco and Six Days, Seven Nights, Heche built a successful career in Hollywood. But after her passing, her estate became tangled in a public and painful legal process.

With no valid will or plan in place, her estate entered probate and faced immediate difficulties. More than $6 million in creditor claims were filed — far more than the estate could cover — and family members were left to sort out complicated questions about control, custody and assets.

In this article, we’ll walk through what went wrong and the steps you can take to protect your loved ones.

How Anne Heche’s Estate Unfolded

The accident that claimed Anne Heche’s life resulted from a high-speed crash in Los Angeles. The crash left one woman’s home destroyed and ignited a fire that burned for nearly an hour. Heche suffered severe injuries and passed away one week later, at age 53.

Soon after, the extent of her estate and its challenges came into focus.

• No formal estate plan or organized records. Heche died without a valid will or trust. There was also no central documentation of her assets or liabilities.
  
• Two children, including one minor. Heche had two sons: Homer, age 20, and Atlas, age 13. With no guardian or asset manager named, the court would have to make decisions on Atlas's behalf.
• Limited known assets. Heche’s estate included only a modest bank account, some business interests and future royalties. Available assets were estimated at $110,000.
  

Making matters worse, the entire process played out in public view. Because Heche died without a trust, her estate entered probate court where financial details, family disputes and creditor claims became part of the public record. A revocable living trust could have kept private matters confidential.

As probate proceedings began, creditor claims quickly mounted, many tied directly to the crash that took Heche’s life. Claims included:

• $2 million by Lynne Mishele, the woman who resided in the home Heche crashed into, destroying the property.
• $2 million each by Jennifer and John Durand, the owners of the Mar Vista home at the time of the crash, who sought compensation for damages.
• Additional claims from Citibank, a former romantic partner and medical providers.

First, the court had to determine who would manage the estate and make decisions for Atlas. The court appointed Homer, Heche’s adult son, to serve as administrator. This decision was challenged by Atlas’s father, who claimed Heche had informally expressed different wishes.

Second, the administrator faced the challenge of settling substantial claims with limited resources. The estate’s known assets were far outpaced by creditor demands, forcing the sale of personal property and intellectual assets. Even a posthumous project, Heche’s memoir Call Me Anne, generated limited revenue.

As of this writing, the case has been ongoing for nearly three years. Probate remains open as the administrator continues to navigate creditor claims, currently totaling $4.1 million.

Lessons from the Estate (And How to Protect Your Family)

Anne Heche’s story offers powerful reminders of why estate planning matters, especially when it comes to shielding loved ones from stress. Let’s look at five hard-earned lessons and actions you can take today.

Lesson 1: Dying Without a Will Often Creates Delays and Disputes

When Heche died without a valid will or trust, the court had to step in to make key decisions. Court filings described Heche’s financial records as disorganized and incomplete, which led to delays, confusion and increased legal costs.

How to Protect Your Family:  Work with an estate planning professional to create a legally binding will, a list of assets and other protective documents, such as a revocable living trust. Keep your estate documents organized and accessible.

Lesson 2: No Named Guardian Leaves Your Children’s Future in Question

At the time of her passing, Heche had a 13-year-old son. With no guardian named in an estate plan, the court made decisions about who would manage any inheritance or financial matters on his behalf. This may not have been what Heche intended, and it opened the door to competing claims and emotional strain.

How to Protect Your Family: Name a guardian (to care for your children) and a fiduciary (to manage any assets left to them) in your estate plan. Document your decisions clearly and update them as life circumstances change. It’s one of the most important things parents can do for their children.

Lesson 3: Your Estate Can Face Large, Unexpected Claims

Following the crash, Heche’s estate was hit with significant creditor claims. Most were tied to property damage, personal injury and medical costs. If Heche had insurance coverage at the time, it was either insufficient or unavailable to fully address these claims.

How to Protect Your Family: Make sure your liability coverage is strong enough to protect your estate. Review your auto, homeowners and umbrella policies annually. If your net worth or lifestyle has changed in recent years, you may need to increase limits or add excess liability insurance to protect what you leave behind.

For those with significant assets, certain irrevocable trusts can also provide an additional layer of protection from creditors. This strategy works best when set up well in advance with the help of an estate planning professional.

Lesson 4: Mixing Business and Personal Finances Creates Complexity

Heche’s estate included various business entities — an LLC tied to a podcast, a corporation managing her creative work — but no clear structure or documentation. Untangling these assets delayed the estate’s progress.

How to Protect Your Family: Keep personal and business assets separated through dedicated accounts and documentation. Consider naming a corporate trustee to oversee business assets within your estate. A professional fiduciary can provide impartiality and experienced administration

Final Lesson: The Best Time to Plan Is Before You Need To

Anne Heche was only 53 when she passed away unexpectedly. She likely anticipated more time to organize documents, name guardians and communicate her wishes. But tragedy doesn’t wait for preparation.

How to Protect Your Family: Prepare your plan now. Talk with the people you trust — your spouse, your children, your executor or trustee. Share where documents are kept, what matters most to you and who to turn to for support.

Plan for the future with Comerica

Life is full of uncertainties. But with a strong estate plan, you can give your loved ones clarity, direction, and protection — no matter what the future holds. Speak with a Comerica advisor today to create the estate plan that’s right for you.

Sources:

1. “Anne Heche’s Son Says Estate Cannot Pay $6 Million Debt.” NBC News, 7 May 2024, https://www.nbcnews.com/pop-culture/pop-culture-news/anne-heches-son-says-estate-cannot-pay-debt-6-million-rcna149320.

2. “Anne Heche Estate: An Ongoing Legal Quagmire.” Trust Counsel, 5 May 2024, https://trustcounsel.com/2024/05/anne-heche-estate-an-ongoing-legal-quagmire/.

3. Whiting, Stephanie. “Anne Heche Estate Debts Lead to Legal Battle with Homer Laffoon.” Los Angeles Times, 24 Apr. 2024, https://www.latimes.com/entertainment-arts/story/2024-04-24/anne-heche-estate-debts-homer-laffoon.

4. “Anne Heche Estate Owes $6 Million in Creditor Claims.” Fox Business, 1 May 2024, https://www.foxbusiness.com/entertainment/anne-heche-estate-owes-6-million-in-creditor-claims.

5. “Anne Heche’s Son Homer Selling Her Assets to Pay Claims.” E! Online, 6 May 2024, https://www.eonline.com/news/1415427/anne-heches-son-homer-selling-her-assets-to-pay-claims.