In 2023, the legendary musician Jimmy Buffett passed away at the age of 76. Since then, a flurry of legal claims have surfaced over his $275 million estate. Majority of Mr. Buffett’s assets went to his widow, Jane Slagsvol, as the main beneficiary. However, Mr. Buffett also named Richard Mozenter, his long-time business partner, as a co-trustee. Having co-trustees has overcomplicated the handling of his estate, resulting in both parties requesting to remove the other. This intricate legal battle can teach us four things:
1. Choose your trustees carefully
A spouse or close business partner aren’t bad trustee choices, but it can be hard for them to remain neutral. Further, with an estate as large as this one, sometimes co-trustees can be strategic. However, not picking the right ones could overcomplicate things.
2. Clarity is key
Your trustees are there to execute your wishes after you have passed, not act upon their own. It’s crucial to clarify in writing exactly what you want to have done with your estate, especially if you’ve left it up to two people where there’s a higher chance of disagreements. Another way to prevent conflict is by signing a “no-contest” clause, which binds your trustees to what you’ve outlined in your will.
3. Impartial third-party
While it might be instinctual to leave everything to someone close to you, it might be smarter to do the opposite. An impartial individual will be more objective and professional in executing your wishes. This could mean choosing a fiduciary or a trust company.
4. Teamwork makes the dream work
Part of the issue with Mr. Buffett’s estate is that there were only two people. When dealing with an estate this large, a team of individuals might be more effective.
At Lord & Lindley, we provide clarity and guidance for those looking to plan for next steps in life. Whether you’re executing a relative’s will or writing your own, our team is ready to assist. To learn more or schedule a consultation, call us at (704) 457-1010 or visit www.lordlindley.com.