Tony Hsieh, the former CEO of Zappos, who died tragically in a house fire at 46 in November 2020. His estate has been caught up in a lengthy and ongoing public legal battle. Tomas created his will in 2015, and it includes some fairly unusual provisions that are intended to generate a “WOW factor” for his heirs. Simultaneously, it places draconian limitations on his other family members.
Hsieh’s will, which appeared in court filings just last week, contains a no-contest clause that would disinherit his four immediate relatives should they challenge the will. Should any of them oppose Hsieh’s will, they would lose their claim to inherit anything from his estate. This clause illustrates Hsieh’s main focus. He was determined that his legacy lived up to his vision of surprising and delighting friends and foes alike.
Incredibly, Hsieh was using this complex web to transfer more than $50 million into unnamed trusts. These trusts are designed to benefit recipients whom Hsieh sought to surprise, reflecting his desire to make a lasting impact beyond his lifetime. Among the notable allocations is a $3 million earmark for Harvard University, an institution currently embroiled in a contentious relationship with the Trump administration, which has frozen billions of dollars in federal funding and is scrutinizing Harvard’s investments in China.
The undated will further bequeaths numerous Las Vegas properties to unnamed trusts. Making this move seem ridiculous and self-serving is the continuing legal chaos surrounding Hsieh’s estate. These properties will play an outsized role in determining who gets Hsieh’s huge estate. They will determine how his preferred beneficiaries fare and under what terms they get their cut.
Hsieh imagined his estate to be a place where beneficiaries could really “live the wow.” This oxymoronic phrase really explains his flinty but fierce approach to life as well as business. His devotion to providing the most exceptional experiences possible epitomizes his memory as an innovator of customer service and imaginative creativity.
As this legal drama plays out, the layers of mystery surrounding Hsieh’s will are likely to be peeled back. It’s his big bequests that are stealing all the headlines. Given the stakes in this case, the future of Hsieh’s estate could be largely determined. Perhaps more importantly, it will provoke conversation around philanthropy’s good intentions and the family issue.
