By Eugene Mitchell
As the COVID-19 pandemic affects the Black community at a disparate rate, we must manage the tragedy’s human and economic impact as best we can. Reflecting on the present crisis, preparedness, and making sure that we have plans and resources in place (e.g., an emergency fund) made me think of the death of hip hop star, Nipsey Hussle, last year. I particularly thought about the under-the radar fact that he did an outstanding job in putting a comprehensive plan in place to provide for his family in the event of his passing.
At the time of his horrifying murder, many celebrated him for his music, businesses savvy, and community activism. Other folks focused on who shot him and why. However, what stood out for me was his mindset, and the fact that this man proactively took care of his family by creating a guaranteed, tax-free inheritance using a financial tool designed to do just that. I only saw two articles in the months of coverage surrounding his death that mentioned this important point.
One headline by the Source.com read, “Nipsey Hussle Reportedly Set Up Multiple Trust Funds for His Family.” The article went on to say: “Nipsey Hussle’s family is kindly declining any crowdfunding efforts [e.g., GoFundMe] because the slain rapper made sure they were set up for life.” The headline of the other article on blackwallet.org read, “Nipsey Hussle’s $1 Million Policy: What You Should Know About Life Insurance.”
I was deeply impressed: This was the first young person from the entertainment industry, under the age of 40, that I’ve heard of make such a significant will and trust plan. He seized the opportunity to leave several millions to his family. From what I read, Nipsey Hussle lived a life of intentionality, and when he departed at age 33, many corroborated that he was wise beyond his years and operated on a different plane. It’s no surprise that his financial planning reflected this as well. In setting up those trusts for his children and long-time companion, Lauren London, Nipsey’s message was loud and clear: I’m not going to rely on someone else to take care of my responsibility!
His financial planning went beyond simply “taking care of mine,” by only making sure that his burial costs were covered. He demonstrated a profound level of fiscal maturity by making sure to leave enough inheritance money to set up college funds for his children, financial security for his partner, and for them to have the luxury of forward thinking. He left enough money for them to invest, capitalize on opportunities, and continue to expand the empire he created. Nipsey was a living, breathing mantra: Don’t just rap about it—be about it!
I continued to monitor the reaping of the inheritance seeds he had sown. A January 2020 article from the Daily Mail was titled, “Lauren London buys $1.7M four-bedroom home 10 months after partner Nipsey Hussle fatally shot in LA.” Another shared how she had signed a deal with the sneaker brand, PUMA, to create a new clothing collection under Nipsy’s brand ‘The Marathon,’ called ‘Hussle and Motivate.’
We know that London has been a successful actor in her own right, but I question whether any of this would have happened if Nipsey had left the family in a financial mess, or reliant on a record label to do the right thing by its deceased artist? Or what would have happened if, as I previously mentioned (and we see so often), London and the children in their blended family were forced to rely on GoFundMe? Would London have gotten these deals independently? Maybe! But here’s what I know: Nipsey Hussle didn’t leave that to chance.
Like those in other communities have done for hundreds of years, and African-Americans leverage far less frequently, Nispey used life insurance as a way to create a financial inheritance that could provide all the advantages for his family that I listed earlier. Nipsey, no doubt, knew that in doing so, his children would do better in life because he was setting them up to do better. Don’t let what I said slip past you!
If you don’t already have a similar estate plan and will in place—with a substantial insurance allocation as its foundation—doing so will enable you to protect and pass on family assets and businesses, just like Nipsey did. And it is not farfetched that everyone in the Black community can do this for the ones we love. Life insurance isn’t just for the wealthy. There are a range of different options, policies, and products that any of us can take advantage of—from a burial policy to a life-altering policy that builds intergenerational wealth. And don’t forget the importance of having a will and trust in place.
My continued condolences to Nipsey Hussle’s family, his loved ones, and the many fans who continue to love him. I shared Nipsey’s story as a case study in crafting financial freedom—and providing it not just for oneself, but for others, as well to those not yet born. Seeing how COVID-19 has ravaged our communities not only in terms of sickness and mortality, but financially as well, I felt more compelled than ever to share my observations on Nipsey’s commendable financial planning and leveraging of insurance—an aspect of his legacy that has largely flown under the radar. Whether you’re blue collar or white collar, we are all frontline and essential workers for our families. When it comes to them, we must plan for the unplanned and have a defensive and strategic strategy to mitigate times of crisis.
As the former head of 1,500 Black financial advisors at New York Life Insurance Company, once I launched out on my own several years ago, I’ve continued our team’s ethos: My mission—and that of anyone I work with—is to give African-American families the planning, tools, and know-how they need to close the racial wealth gap, individually and collectively. Inheritance can make a difference. If you want to strengthen your financial and estate planning—or even get started—I’d love to speak with you. You can reach me at: emitchell@emitchellconsulting.com
In the immortal words of Nipsey Hussle: The Marathon Continues…. It’s just as relevant in the age of COVID-19 as it was at the time of his passing.
