Howard Hughes - Estate

Estate

Approximately three weeks after Hughes' death, a handwritten will was found on the desk of an official of The Church of Jesus Christ of Latter-day Saints in Salt Lake City. The so-called "Mormon Will" gave US$1.56 billion to various charitable organizations (including US$625 million to the Howard Hughes Medical Institute); nearly US$470 million to the upper management in Hughes' companies and to his aides; US$156 million to first cousin William Lummis; and US$156 million split equally between his two ex-wives Ella Rice and Jean Peters.

A further US$156 million was endowed to a gas-station owner named Melvin Dummar. Dummar told reporters that late one evening in December 1967, he found a disheveled and dirty man lying along U.S. Highway 95, 150 miles (240 km) north of Las Vegas. The man asked for a ride to Las Vegas. Dropping him off at the Sands Hotel, Dummar said the man told him he was Hughes. Dummar then claimed that days after Hughes's death, a "mysterious man" appeared at his gas station, leaving an envelope containing the will on his desk. Unsure if the will was genuine, and unsure of what to do, Dummar left the will at the LDS Church office. In a trial lasting seven months, the Mormon Will was eventually rejected by the Nevada court in June 1978 as a forgery. The court declared that Hughes had died intestate.

Hughes' US$2.5 billion estate was eventually split in 1983 among 22 cousins, including William Lummis who serves as a trustee of the Howard Hughes Medical Institute. Dummar was largely discounted by the public as a phony and an opportunist. Jonathan Demme's film Melvin and Howard (starring Jason Robards and Paul Le Mat), was based on Dummar's tale.

The U.S. Supreme Court ruled that Hughes Aircraft was owned by the Howard Hughes Medical Institute, which sold it to General Motors in 1985 for US$5.2 billion. Suits brought by the states of California and Texas claiming they were owed inheritance tax were both rejected by the court. In 1984, Hughes's estate paid an undisclosed amount to Terry Moore, who claimed to have been secretly married to Hughes on a yacht in international waters off Mexico in 1949 and never divorced. Although Moore never produced proof of a marriage, her book, The Beauty and the Billionaire, became a bestseller.