Hey there, Legal Tea Listeners! This is your host, Jenny Rozelle. We’re back to “estate planning of the rich and famous” where we chat about celebrities and their estate planning (or lack thereof!). Today’s episode comes as a request from one of my team members at the law firm – she is wanting me to do an episode on a race car driver or drivers as we get closer to the Indianapolis 500 in May, so she can use it for some fun content. Therefore, today is on that … In this episode, we are going to explore the world of estate planning through the lens of racing history. We will navigate the twists and turns of estate management, and specifically what happened after a couple big-name racecar drivers passed away. You know, just as every driver needs a skilled pit crew to succeed on the track, every estate needs careful planning to secure a lasting legacy. So, as the month of May approaches and my home state, Indiana, and specifically the city of Indianapolis prepares for its next running of the Indianapolis 500, we are going to take a unique look at how some of motorsport's greatest names planned – or sometimes failed to plan – for their final lap in life. I think today’s episode will a fun one, for sure!
As I began preparing for it, I was struggling to find a “poster child” of “good” or even “bad” estate planning – so I put some feelers out on my favorite social media site, Twitter / X, and a couple of friends on there gave me two names – so, one race car “celebrity” we are going to talk about today is driver, Carroll Shelby, and the other “celebrity” will be none other than Dale Earnhardt, which I know, I know – technically not IndyCar, but we’re just going to have to stick with the topic of racing, IN GENERAL, for the sake of this episode! Which one do we want to start with? Let’s start with Carroll Shelby…
Now, according to Shelby.com, his company’s website, and his Wikipedia page, Carroll Shelby lived a life that truly revolutionized both racing and automotive design. He was born in Texas in 1923 – and had, what some would call humble beginnings, as being a chicken farmer before finding true calling behind the wheel. Despite battling a heart condition that required him to keep nitroglycerin pills under his tongue while racing, which is wild to think about, he achieved great success on the track, which included winning the 24 Hours of Le Mans (pronounced Luh-Man) race in 1959 with co-driver Roy Salvadori in an Aston Martin DBR1.
Beyond his racing career, it was really what happened AFTER being behind the wheel, which is really what cemented his legendary status. After retiring from racing due to health concerns in 1960, he turned his attention to car design and manufacturing. His most iconic creation, the Shelby Cobra, was a fusion of American muscle and European finesse, which created one of the most celebrated sports cars in history. His partnership with Ford led to the development of the Shelby Mustang GT350 and GT500, and his contributions were crucial to Ford's historic victory over Ferrari at Le Mans in 1966 with the GT40. Shelby continued to influence automotive design and performance until his passing on May 10, 2012 at the age of 89, leaving behind a legacy that transformed both racing and road cars. His name remains synonymous with high-performance vehicles, and his influence continues through Shelby American, the company he founded.
So, that is a little bit about him, but for this episode what I wanted to chat about estate-wise was what happened to his literal body after he died. Not money, not assets, nope – his body. After he died, an argument broke out between Caroll’s widow, Cleo Shelby, and his three children, Sharon, Michael, and Patrick – which were not children of his widow, Cleo. According to the Los Angeles Times, the argument left Carroll’s body sitting in a morgue from his death on May 10, 2012 until ultimately a settlement was reached in July of 2012. So, two months of his body sitting in a morgue while his widow and children fought. What were they fighting about, you ask? Well, what to do with the body – as Los Angeles Times says, “His children wanted to cremate him, and his surviving wife, Cleo Shelby, said she wanted to decide what happens to his remains.”
Both sides, Cleo and the children, field Petitions in a Texas Court – and ultimately, a settlement was reached. The LA Times article shared that a representative of Cleo Shelby, his widow, stated that Carroll would be cremated and his remains would be distributed as follows: 20% to Cleo, 20% to each of his three children, and the final 20% to be buried in a family plot in Texas. So, if you have never heard of a family fighting over cremated remains, here you go – it has happened before and to Caroll Shelby. Interestingly, what was discovered in the lawsuit was that Caroll DID sign a document, a declaration of his desire to be cremated … but after his death, Cleo, the widow, AND his children both requested that the County Medical Examiner hand over Carroll’s remains – and essentially, this caused gridlock to happen and the Court to get involved. What a mess, huh!
So, that’s about it for Caroll Shelby, let’s shift to Dale Earnhardt now…
According to Biography.com and his Wikipedia page, Dale Earnhardt, known as "The Intimidator" for his aggressive driving style, stands as one of NASCAR's most legendary figures. He was born in North Carolina in 1951 … and ended up following his father Ralph's racing footsteps, dropping out of school to pursue his dream of becoming a professional driver. He, too (like Carroll Shelby!), rose from humble beginnings working at a textile mill to end up becoming one of the most successful and influential drivers in NASCAR history, winning seven NASCAR Winston Cup championships, tying Richard Petty's record, and earning 76 Winston Cup race victories throughout his career. I mean, a heck of a job!
Dale’s tragic death during the final lap of the 2001 Daytona 500 sent shockwaves through the racing world and led to significant safety improvements in NASCAR. His legacy lives on not just through these safety innovations, but through Dale Earnhardt Inc., the racing team he founded, and through his son Dale Earnhardt Jr., who carried on his racing legacy. Known for driving the black No. 3 Chevrolet for Richard Childress (pronounced Chill-driss) Racing, Dale’s intimidating presence on the track was matched by his business expertise off it, building a merchandise and licensing empire that revolutionized NASCAR's marketing approach. Even over two decades after his passing, the Earnhardt name remains synonymous with NASCAR excellence, and there is no denying his impact on the sport continues to influence new generations of drivers.
Now shifting to what happened estate-wise following his death in 2001…
Following Dale death, his widow, Teresa Earnhardt, assumed control of Dale Earnhardt Incorporated (DEI), which was the racing organization Dale had established with the vision of creating a lasting legacy for his family. Teresa, as the Executor AND Beneficiary of Dale's estate, faced the complex task of managing DEI's operations and preserving its prominence in the NASCAR community. Under her leadership, DEI initially experienced success, with drivers like Dale Earnhardt Jr. achieving notable victories. However, estate planning challenges emerged, particularly concerning the involvement of Dale's children in the company. Which, in my opinion, is somewhat expected given it was a blended family. Teresa was not the mother of the children and that, in my experience, often poses some challenges from an estate perspective if the estate plan is not the world’s best plan.
Essentially what happened were disputes over ownership percentages and management decisions, which led to super strained relationships, most prominently between Teresa and Dale Earnhardt Jr. These internal conflicts concluded with Dale Jr.'s departure from DEI in 2007, which, to no one’s surprise, massively impacted the organization's performance and standing in the racing world. That, of course, would have never been something that Dale would have loved to see, so the situation really emphasizes the importance of clear succession planning and open communication in family-owned businesses to ensure the founder's legacy is honored and sustained.
One other thing regarding Dale’s estate, which is far more recent, occurred in October of last year, 2024, when Teresa again faced significant backlash from fans after proposing the conversion of nearly four hundred acres of Dale’s cherished farmland in Mooresville, North Carolina, into an industrial park. This land, once a sanctuary for Dale's recreational activities like hunting and fishing, holds deep sentimental value for his supporters. Many fans view the development plan as a betrayal of Dale's legacy, believing the area should remain a wildlife preserve. So yeah, like I said, this more recent controversy adds to a series of disputes surrounding Teresa's management of the Earnhardt estate, including past disagreements with her stepson, Dale Earnhardt Jr., over the direction of Dale Earnhardt Incorporated (DEI).
Well, as we begin to wrap this episode up … this will be released on March 18th, which is about sixty to seventy days away from the infamous Indianapolis 500 – which was, like I said, the inspiration for this episode. I occasionally mention it on this podcast, but I am in Indiana – just north of Indianapolis-area, so I go to the Indy 500 every year. I am not a huge racing fan, and really just go alongside my parents and Uncle – but it’s one of those things that everyone really should try to experience at some point. The whole day, which yes is a whole day event, is quite a thing – great people-watching, too. So, let this be a subtle encouragement to check out the race some day.
Alrighty, let’s wrap this episode up and shift to a sneak peak at next week. Next week we’re back to a “cautionary tale” episode where we talk about real-life clients, real-life cases that I, or my office, have worked on -or- maybe they are just generally good things to know/be aware of so you don’t slip up and turn into a cautionary tale one day. Next week, we are going to talk about how to “deal” with family members who are estranged in an estate plan. A lot of people (more than many would think) have these types of family members and wonder what to do / how to incorporate them (or not) in an estate plan. So yeah, next week will be on that … until then, Legal Tea Listeners…take care and be well!
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