Latest news with #trust
Yahoo
2 hours ago
- Business
- Yahoo
$275M Inheritance Fight: What Every Millionaire Can Learn From Jimmy Buffett's Mistake
Renowned singer-songwriter Jimmy Buffett died in September 2023, leaving behind a $275 million estate. The bulk of Buffett's assets went into a marital trust with his widow, Jane Slagsvol, as the main beneficiary. Slagsvol is a co-trustee, along with Buffett's long-time business manager, Richard Mozenter. Unfortunately, there's been a massive legal dispute between Mozenter and Slagsvol over that trust. Specifically, Slagsvol is petitioning to remove Mozenter as co-trustee for three primary reasons. The first is that he's failed to generate enough income with the trust's investments. The second is that he hasn't kept her abreast of the trust's various investments, expenses and income. And the third is that, according to her, Mozenter has been 'openly hostile' and appears to be working against her best interests. Check Out: Read Next: According to Slagsvol, the trust is estimated to receive less than a 1% return rate — not enough to cover her annual expenses. Along with this, Mozenter received $1.7 million in trustee fees in 2024. In response to all this, Mozenter also seeks to remove Slagsvol as co-trustee. If you're a millionaire, you could learn a few things from the way Jimmy Buffett handled his estate so you don't make the same mistake. Choose Your Trustees Carefully When you have a massive estate, it's crucial that you choose your trustee — or trustees — carefully. It's not always enough to pick someone you've known for a long time or who you're married to. 'Choose your trustee like you'd choose a CEO; someone trustworthy, financially literate and emotionally neutral. If you don't have that person within the family, appoint a professional or corporate trustee,' said Craig Parker, assistant general counsel at Trust & Will and a California state bar-certified specialist in estate planning, trust and probate Law. With larger, complex estates, having co-trustees can be a good strategy. But you'll want to make sure they trust one another and work well together. If all else fails, you could name a trust protector who will step in if either trustee can no longer perform their role. Learn More: Be Extremely Clear With Your Estate Plan The importance of being clear with how you want your assets managed and doled out can't be understated. While Buffett might have believed choosing his wife and business manager as co-trustees was enough, anything that's left unclear can lead to major legal battles down the road. 'Clear, detailed estate planning is essential. That means establishing a comprehensive trust, updating it regularly and communicating intentions openly with beneficiaries,' said Parker. 'Clarity reduces conflict; vagueness invites it.' A couple of ways to prevent conflict is to include a 'no-contest' clause or mediation provisions in your estate. That way, there's no question of what happens with your assets. And if anyone does argue the point, they risk ending up with nothing at all. Choose an Impartial Third Party When you're setting up your trust, it might behoove you to choose someone who's impartial. This means picking somebody who isn't incentivized to use their role as co-trustee to benefit themselves or their business. 'It would be wise to use trust administrators who don't have a financial interest in the trust assets as well as those who aren't emotionally involved in the relationships so they can be more professional,' said Travis Christiansen, attorney at Boyack Christiansen Legal Solutions. This could also mean choosing a professional fiduciary or a trust company instead of a personal relation. Even though it can be pricey, going this route can help ensure everything goes as planned. Professional fiduciary fees generally range from 1% to 1.5% of your trust assets each year. Some will charge on an hourly, monthly or yearly basis instead. Put Together a Team Part of the issue is that Buffett had two co-trustees when, in fact, it might have been better to have a full team to administer his estate. 'If you have a massive estate, you need to build a team of professionals to create an estate, tax and financial plan that ensures your wishes are followed. Lack of planning can cost you 40%-plus of your estate in taxes,' said Jay Zigmont, PhD, CFP®, founder and visionary of Childfree Trust. Among other professionals, consider having a reputable attorney, trustee and financial advisor involved in your estate planning. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Unreliable SUVs To Stay Away From Buying 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on $275M Inheritance Fight: What Every Millionaire Can Learn From Jimmy Buffett's Mistake Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Guardian
3 hours ago
- Business
- The Guardian
Jimmy Buffett's widow seeks removal of financial adviser from overseeing $275m estate
Jimmy Buffett's widow has accused her late husband's financial adviser of failing to administer the singer's multimillion-dollar trust in good faith and ignoring what she believed were her best interests for the $275m estate. Jane Buffett on Monday asked a judge in West Palm Beach, Florida, to stop Richard Mozenter from trying to remove her as a trustee and instead sought an order removing him from overseeing the estate, according to court papers. Jimmy Buffett, who popularized beach bum soft rock and created a Margaritaville empire of restaurants and resorts, died 1 September 2023 at 76. His widow and Mozenter have since been embroiled in a battle over who controls the trust, with each accusing the other of mishandling funds in lawsuits filed in both California and Florida. The dispute is similar to a separate one going on with the estate of another beloved singer, Tony Bennett. Two of the late crooner's daughters sued their brother over his handling of the family trust. Jane Buffett's filing on Monday accuses Mozenter of 'repeatedly' breaching his fiduciary duty by failing to provide her with basic information about the trust's assets and its investments while taking 'unreasonable fees and costs in the context of the services provided'. On 30 May, Jane Buffett's lawyers provided Mozenter's lawyers a copy of a petition they planned to file in Los Angeles superior court if he did not resign as co-trustee by 2 June, the filing states. Mozenter's counsel instead filed a petition 2 June in West Palm Beach, seeking Buffett's removal as co-trustee, documents show. Jane Buffett's complaint was filed 3 June in Los Angeles, where Mozenter is managing director at Gelfand, Rennert and Feldman LLC. 'Notably, Mr Mozenter only brought this (and his other) retaliatory, baseless action after Mrs Buffett had informed him that, absent his resignation, she would initiate litigation against him to seek his removal as co-trustee,' the complaint said. Mozenter claimed in his lawsuit that Jimmy Buffett established the trust with Mozenter as an independent trustee because he was concerned about his wife's 'ability to manage and control his assets'. The complaint filed Monday in Florida says the relationship between Jane Buffett and Mozenter is 'untenable,' and it asks the judge to remove Mozenter as cotrustee. 'Jane will not play into Mr Mozenter's hands by litigating this dispute in two separate courts across the country, which would drain the very trust money that Jimmy specifically set aside for her care,' attorney Matt Porpora said. 'Instead, Jane is bringing the fight to Florida, where she and Jimmy called home. Jane is confident she will prevail regardless of where her claims are heard, and her decision to move her claims from California to Florida illustrates that she is the only co-trustee looking to conserve – not waste – trust assets,' Porpora said. Mozenter did not immediately respond to an email seeking comment.
CBS News
20 hours ago
- Business
- CBS News
Jimmy Buffett's widow sues to remove financial adviser from late husband's $275 million trust
Jimmy Buffett's widow has accused her late husband's financial adviser of failing to administer the singer's multimillion-dollar trust in good faith and ignoring what she believed were her best interests for the $275 million estate. Jane Buffett on Monday asked a judge in West Palm Beach to stop Richard Mozenter from trying to remove her as a trustee and instead sought an order removing him from overseeing the estate, according to court papers. Jimmy Buffett, who popularized beach bum soft rock and created a "Margaritaville" empire of restaurants and resorts, died Sept. 1, 2023, at 76. His widow and Mozenter have since been embroiled in a battle over who controls the trust, with each accusing the other of mishandling funds in lawsuits filed in both California and Florida. The dispute is similar to another going on with the estate of another beloved singer, Tony Bennett. Two of the late crooner's daughters sued their brother over his handling of the family trust. Jane Buffett's filing on Monday accuses Mozenter of "repeatedly" breaching his fiduciary duty by failing to provide her with basic information about the trust's assets and its investments while taking "unreasonable fees and costs in the context of the services provided." On May 30, Jane Buffett's lawyers provided Mozenter's lawyers a copy of a petition they planned to file in Los Angeles Superior Court if he did not resign as co-trustee by June 2, the filing states. Mozenter's counsel instead filed a petition June 2 in West Palm Beach, seeking Buffett's removal as cotrustee, documents show. Jane Buffett's complaint was filed June 3 in Los Angeles, where Mozenter is managing director at Gelfand, Rennert and Feldman LLC. "Notably, Mr. Mozenter only brought this (and his other) retaliatory, baseless action after Mrs. Buffett had informed him that, absent his resignation, she would initiate litigation against him to seek his removal as co-trustee," the complaint said. Mozenter claimed in his lawsuit that Jimmy Buffett established the trust with Mozenter as an independent trustee because he was concerned about his wife's "ability to manage and control his assets." The complaint filed Monday in Florida says the relationship between Jane Buffett and Mozenter is "untenable," and asks the judge to remove Mozenter as cotrustee. "Jane will not play into Mr. Mozenter's hands by litigating this dispute in two separate courts across the country, which would drain the very trust money that Jimmy specifically set aside for her care," said attorney Matt Porpora. "Instead, Jane is bringing the fight to Florida, where she and Jimmy called home. Jane is confident she will prevail regardless of where her claims are heard, and her decision to move her claims from California to Florida illustrates that she is the only co-trustee looking to conserve — not waste — trust assets," Porpora said. Mozenter did not immediately respond to an email seeking comment.
Washington Post
a day ago
- Business
- Washington Post
Jimmy Buffett's widow accuses financial adviser of breaching fiduciary duty in $275M trust battle
FORT LAUDERDALE, Fla. — Jimmy Buffett 's widow has accused her late husband's financial adviser of failing to administer the singer's multimillion-dollar trust in good faith and ignoring what she believed were her best interests for the $275 million estate. Jane Buffett on Monday asked a judge in West Palm Beach, Florida, to stop Richard Mozenter from trying to remove her as a trustee and instead sought an order removing him from overseeing the estate, according to court papers.
CTV News
a day ago
- Business
- CTV News
Jimmy Buffett's widow accuses financial adviser of breaching fiduciary duty in US$275M trust battle
In this Feb. 9, 2023, photo provided by the Florida Keys News Bureau, singer-songwriter Jimmy Buffett performs during a concert in Key West, Fla. (Rob O'Neal/Florida Keys News Bureau via AP) FORT LAUDERDALE, Fla. — Jimmy Buffett 's widow has accused her late husband's financial adviser of failing to administer the singer's multimillion-dollar trust in good faith and ignoring what she believed were her best interests for the US$275 million estate. Jane Buffett on Monday asked a judge in West Palm Beach, Florida, to stop Richard Mozenter from trying to remove her as a trustee and instead sought an order removing him from overseeing the estate, according to court papers. Jimmy Buffett, who popularized beach bum soft rock and created a 'Margaritaville' empire of restaurants and resorts, died Sept. 1, 2023, at 76. His widow and Mozenter have since been embroiled in a battle over who controls the trust, with each accusing the other of mishandling funds in lawsuits filed in both California and Florida. The dispute is similar to another going on with the estate of another beloved singer, Tony Bennett. Two of the late crooner's daughters sued their brother over his handling of the family trust. Jane Buffett's filing on Monday accuses Mozenter of 'repeatedly' breaching his fiduciary duty by failing to provide her with basic information about the trust's assets and its investments while taking 'unreasonable fees and costs in the context of the services provided.' On May 30, Jane Buffett's lawyers provided Mozenter's lawyers a copy of a petition they planned to file in Los Angeles Superior Court if he did not resign as cotrustee by June 2, the filing states. Mozenter's counsel instead filed a petition June 2 in West Palm Beach, seeking Buffett's removal as cotrustee, documents show. Jane Buffett's complaint was filed June 3 in Los Angeles, where Mozenter is managing director at Gelfand, Rennert and Feldman LLC. 'Notably, Mr. Mozenter only brought this (and his other) retaliatory, baseless action after Mrs. Buffett had informed him that, absent his resignation, she would initiate litigation against him to seek his removal as co-trustee,' the complaint said. Mozenter claimed in his lawsuit that Jimmy Buffett established the trust with Mozenter as an independent trustee because he was concerned about his wife's 'ability to manage and control his assets.' The complaint filed Monday in Florida says the relationship between Jane Buffett and Mozenter is 'untenable,' and asks the judge to remove Mozenter as cotrustee. 'Jane will not play into Mr. Mozenter's hands by litigating this dispute in two separate courts across the country, which would drain the very trust money that Jimmy specifically set aside for her care,' said attorney Matt Porpora. 'Instead, Jane is bringing the fight to Florida, where she and Jimmy called home. Jane is confident she will prevail regardless of where her claims are heard, and her decision to move her claims from California to Florida illustrates that she is the only co-trustee looking to conserve — not waste — trust assets,' Porpora said. Mozenter did not immediately respond to an email seeking comment. Freida Frisaro, The Associated Press
