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

Ali Katz

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The Missing Will Mystery: How Zappos CEO’s Estate Chaos Could Have Been Avoided | PFL®
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Imagine this: You’ve built a business empire, revitalized an entire city, and left a legacy of innovation and generosity. Then, unexpectedly, you pass away—and five years later, a will suddenly surfaces, throwing everything into chaos.

This isn’t fiction. It’s the real-life story of Tony Hsieh, the former Zappos CEO who died in 2020 without a clearly established estate plan—or so everyone thought.

In February 2025, a will dated 2015 mysteriously appeared, potentially upending years of legal proceedings, probate delays, and family conflict. It’s a heartbreaking example of how traditional estate planning can fail—even for the ultra-wealthy. 

Tony Hsieh's Nightmare: A Cautionary Tale

At the time of his death, Hsieh’s estate was valued at over $500 million. With no known will, his loved ones have spent the last five years battling in court—facing lawsuits from former associates, business creditors, and more.

Then, a new twist: A will was found in the possession of a man named Pir Muhammad, recently deceased and reportedly suffering from Alzheimer’s. The document allegedly includes unusual language, a no-contest clause directed at Hsieh’s family, and appoints executors who were unknown to many of Hsieh’s close friends.

And it’s not even clear if the will is valid.

Why Traditional Wills Often Fail

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.

Even if this newly discovered will holds up in court, it raises serious red flags about the pitfalls of traditional estate planning.

Here’s why a will alone isn’t enough to protect your loved ones:

  • It can be lost, outdated, or stored in the wrong hands.

  • It may not reflect your current relationships or assets.

  • It often lacks guidance for your family about what to do next.

  • It doesn’t include regular updates or legal support.

A basic will is just a document—it’s not a full plan. And when it’s not part of a bigger picture, your loved ones can end up in court and conflict, like Tony Hsieh’s family has.

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 (or No) Estate Planning

Hsieh’s story shows how failing to plan—or relying on outdated or incomplete documents—can cost your loved ones millions. But the real cost goes beyond money.

  • Years of court battles

  • Emotional stress for family members

  • Uncertainty about your true wishes

  • Public exposure through probate

These aren’t just legal headaches—they’re deeply personal consequences that could have been avoided with the right plan in place.

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 we 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 was designed to ensure 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. My 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 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 their lawyer is, how to reach them, and what role they play in helping manage your affairs. This relationship extends to providing counsel during difficult times, such as incapacity or end-of-life planning.