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Elections, Brothels, Family: Dennis Hof And Lessons In Estate And Succession Planning

The drama of Hof’s life continues as his family, business associates, and political constituents eagerly wait for succession plans.

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Dennis Hof (Photo by Bobby Bank/Getty Images)

Nevada brothel owner, state assembly candidate, and realty television star Dennis Hof is dead at the age of 72. He was discovered unresponsive on October 16 by his friend, pornography actor Ron Jeremy, at the Love Ranch South, a legal brothel Hof owned in Crystal, Nevada. His death followed a week of birthday parties and political celebrations. Despite Hof’s passing, the cause of which remains unknown, he is expected by many to win his election for state assembly in November,  as due to his death, so close to the election, his name remains on the ballot.

Hof famously owned seven legal brothels in the State of Nevada including the Moonlite Bunny Ranch which is featured on the reality show Cathouse from 2002-2014. Hof’s autobiography, The Art of the Pimp, was a best-seller and he was a frequent guest on talk shows, often discussing the legality of prostitution in Nevada, which is determined by county. Frequently in the news,  Hof was also the subject of several police investigations and allegations related to his personal and business affairs.

Recently, Hof became active in politics, running for Nevada State Assembly. He referred to himself as “Trump from Pahrump.”  Notably, he prevailed in a First Amendment case against Nye County, Nevada,  after officials allegedly attempted to remove his campaign signs.  According to the State of Nevada’s Constitution, the 36th District of Nevada will appoint another Republican to serve in Hof’s place should he posthumously win the election.

Questions as to Hof’s successor abound, not just in his political life, but with regard to control and ownership of his brothels. It is unknown whether Hof died with a will, although there have been news reports referencing a trust which could determine the ownership and control of Hof’s empire. Similarly, madame and friend of Hof, Heidi Fleiss, who visited with him the day before his death, has reported that a last will is in existence.

Hof’s death, amidst its political and entertainment drama, provides a lesson to all business owners to make certain succession plans are in order not just for personal assets, but for businesses as well.  If you are the sole owner of a business or have a partnership stake in a business, it is imperative that you develop a comprehensive plan as to whom shall control the asset upon your passing. That person may be different than the individuals you wish to own the asset.

Business owners must understand how their businesses are organized and whether there is a succession plan already in place. Sometimes in family-held businesses there are no documents to dictate the actions when an owner passes away. In these cases, litigation abounds as children and grandchildren fight over who is in charge and the division of equity.

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An ownership stake in a business is an asset, just like a bank account. That asset, upon death, will be distributed by the will of the deceased owner or if she dies intestate, by the laws of her state. Sometimes, however, there are agreements where the business dictates whom succeeds as an owner, perhaps a spouse or a child. Without documentation stating otherwise, surviving shareholders may contend that they inherit the deceased shareholder’s property and it passes to them upon her passing, as opposed to her heirs.

If a business is a sole proprietorship, it must be transferred by probate or the laws of intestacy. In many states, there are probate proceedings available for family members to continue the business while ownership and other probate issues are considered. This is important when businesses have significant customers, employees, and other obligations, and especially when the owner dies unexpectedly and without instruction.

Speculation has already arisen as to who will take over Hof’s brothels. Some news outlets have reported that Suzette Cole, who worked as a madame with Hof at his brothels, will manage the brothels as her name appears on many of the brothel licenses. Interestingly, her name does not appear on the license for Love Ranch South where died. The brothel temporary closed upon Hof’s death.

As is often the case with estates, litigation may ensue. It is already reported that Hof’s two estranged daughters from his first wife have surfaced inquiring as to the succession plan for their father’s empire. The drama of Hof’s life continues as his family, business associates, and political constituents eagerly wait for succession plans, not only for his brothels, but for the 36th District of Nevada. Hopefully Hof was as prepared as the State of Nevada for his unexpected passing.

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Cori A. Robinson is a solo practitioner having founded Cori A. Robinson PLLC, a New York and New Jersey law firm, in 2017. For more than a decade Cori has focused her law practice on trusts and estates and elder law including estate and Medicaid planning, probate and administration, estate litigation, and guardianships. She can be reached at cori@robinsonestatelaw.com. 

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