The Missing Will Mystery: How Zappos CEO’s Estate Chaos Could Have Been Avoided

Tony Hsieh's cautionary tale shows why proper estate planning with regular reviews is critical, regardless of your wealth or age. Read more...

2025.05.23

The Missing Will Mystery: How Zappos CEO’s Estate Chaos Could Have Been Avoided

Imagine this: You've built a business empire worth hundreds of millions of dollars, transformed a city's downtown area, and touched countless lives with your vision and generosity. Then, unexpectedly, you pass away—and nearly five years later, a will you may have created suddenly appears. Meanwhile, your family has been battling creditors, former associates, and mounting legal fees in a probate nightmare that has cost millions and years to manage.

This isn't the plot of a legal thriller—it's the real-life saga of Tony Hsieh, the former Zappos CEO who died in November 2020 at age 46. After years of his estate being managed under the assumption he died without a will, a document dated March 2015 mysteriously surfaced in February 2025. This surprising twist could completely upend the years of legal proceedings that have already occurred. The story serves as a powerful reminder of why proper estate planning, with regular reviews and updates, is critical no matter your age or wealth status.

Let's explore what went wrong and how a Life & Legacy Plan could have prevented such chaos.

The Perils of Traditional Estate Planning

Even if the recently discovered will is deemed valid, it raises more questions than answers. According to recent news reports the will was found among the belongings of Pir Muhammad, a man suffering from Alzheimer's disease who recently passed away. Some reviewing attorneys have described the document as having "convoluted" language and an unusual structure, though we can't know the full circumstances of its creation.

The will reportedly includes a no-contest clause directed at Hsieh's family members, meaning if any of them contest the will, they would receive nothing. It also designates charitable donations to major foundations and appoints executors that include Mr. Muhammad, whom many of Hsieh's close friends and associates claim they've never heard of.

This situation highlights a critical mistake many people make: not having a comprehensive estate planning strategy that includes proper safeguards for document storage, communication with family members, regular updates, and a relationship with a trusted lawyer. While we don't know the specific circumstances of Hsieh's estate planning process, we do know that the outcome—a will surfacing years after death, held by someone unfamiliar to many close associates, and no lawyer who knew Hsieh and could speak to his wishes—created significant complications.

A will can fail you and your loved ones when it:

• Isn’t part of a comprehensive estate plan;
• Doesn’t guide loved ones on what to do when something happens to you;
• Isn’t easily findable immediately after your death;
• Wasn’t part of a system for regular reviews and updates, to catch any potential problems before they arise;
• Isn’t part of a plan that references your assets, and is updated over time, as they change; and 
• Becomes outdated as life circumstances change, and so doesn’t work when you and your loved ones need to call on your plan.

Have you ever thought about where your important documents are stored and who knows about them? How would your loved ones know what to do if something happened to you tomorrow? And can you be sure that your loved ones wouldn’t end up in court and conflict over something you could have easily taken care of? 

The Cost of Poor Planning (or No Planning)

As a result of poor planning, Hsieh's loved ones and business associates have been embroiled in legal battles for five years. The tech mogul's fortune, once estimated at over $500 million, has been subject to numerous legal claims, many based on handwritten notes or verbal agreements allegedly made during the last year of his life when reports indicate he was struggling with substance abuse and mental health issues.

Without clear documentation of his wishes through proper estate planning and without a trusted legal advisor who can speak to Hsieh’s wishes, his legacy has been partially defined by courtroom disputes rather than the innovation and community-building he championed during his life. His family has had to manage complex business holdings and real estate assets without his guidance, while defending against claims from various parties.

The financial burden of litigation is just one aspect of this tragedy. The emotional toll on family members, the time consumed by legal proceedings, and the uncertainty about honoring Hsieh's true intentions represent incalculable losses. And all of this might have been prevented with thorough and thoughtful estate planning.

How important is it to you that the people you love be spared this kind of emotional and financial burden after you're gone? What steps have you taken, if any, to ensure your wishes will be clear and legally enforceable?

Why Traditional Estate Planning Fails

Traditional estate planning, i.e., documents you either draft yourself, your financial advisor drafts for you, or you pay a transactional attorney to create, often fails you and your loved ones because the focus is on the documents themselves. Here’s what I mean.

Most people - attorneys included - think all you need to do is draft and sign a will and maybe a few other documents, like a health care directive and a power of attorney, and then you’re done. But, as we see in Hsieh’s case, that is rarely enough. The documents are a part of the estate plan, but they are not the entire estate plan. An effective estate plan, a Life & Legacy Plan, encompasses so much more information than is reflected in a will, health care directive, or power of attorney document. 

A Life & Legacy Plan works by covering what happens to your assets after you die, but also things like:

• Instructions on where to find your plan documents;
• Guidance on how your plan works and how the documents fit together; 
• Instructions for the people you’ve named in your documents so they know what to do after you die;
• An updated inventory of all your assets so your loved ones know exactly where to find them and how to access them; 
• A system for ongoing and regular reviews of your plan; 
• Who your loved ones can turn to for support with the legal process while they’re grieving; and
• Your spoken wishes for your loved ones, including passing along your values to the next generation.
• An ongoing relationship with your lawyer, who has systems and processes built into their business to get to know you over time. 

These items aren’t typically covered in a will, trust, power of attorney, or health care directive, and that’s why traditional estate plans fail. Even the rich, like Hsieh, aren’t immune.  

Why Life & Legacy Planning Works

As your Personal Family Lawyer® firm, we use a proprietary Life & Legacy Planning process to help you create an estate plan that won’t fail you and your loved ones. The Life & Legacy Planning process ensures that your loved ones don’t go through even a tiny fraction of what the Hsieh family is dealing with now. Here’s what it includes.  

A Comprehensive Asset Inventory With Regular Updates

We help you create and maintain a complete inventory of your assets—not just your financial holdings but your business interests, real estate, cryptocurrency, personal property, and even your intangible assets, like your values, insights, stories and experience, or content you’ve created. This inventory is regularly reviewed and updated to reflect changes so nothing is lost.

Regular Plan Reviews and Updates

Life changes, and your Life & Legacy Plan evolves with you. Our plans include regular reviews with you to ensure your plan reflects changes in your business holdings, personal relationships, and wishes. This ongoing relationship could prevent a situation where a potentially outdated will suddenly appears years after death.

Building a Relationship of Trust

Perhaps most importantly, we strive to build relationships with our clients AND their loved ones. Unlike the mystery surrounding Pir Muhammad and his role in Hsieh’s Will, your loved ones would know exactly who we are, how to reach us, and what role we play in helping manage your affairs. This relationship extends to providing counsel during difficult times, such as incapacity or end-of-life planning.

Take Action Today

Are you ready to avoid the kind of chaos that's plagued Tony Hsieh's legacy? As a Personal Family Lawyer, we help you create a Life & Legacy Plan that ensures your wishes are honored, your loved ones are cared for, and your assets are preserved for the people you want, in the way you want. Click below to schedule a complimentary 15-minute consultation to learn how I can help you create your Life & Legacy Plan today:

https://calendly.com/myachorlaw/15min

This article is a service of Attorney John F. Koenig, Anchor Law, Life and Legacy Planning, LLC, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a comprehensive Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® Firms, a source believed to provide accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.