FROM THE MAGAZINE
Jimmy Buffet:
A Whole New Perspective of Wastin' Away in Margaritaville
Written By: Lindsey Buchheit
Since the day we got married, my husband and I have made a pact to take one all-inclusive vacation each year. We’ve managed to do just that for the last twenty years. Our five-day vacation has minimal requirements: sun, a beach, and complete relaxation. On our way to the airport, we play music to get us in that long-anticipated “vacation mode,” and Jimmy Buffett’s famous song, Margaritaville, is always a staple on our playlist.
Unfortunately, Buffett passed away at the age of 76 in September 2023. Two years later, Jimmy’s $275 Million Trust estate is still unresolved and at the center of a highly contested legal battle between Buffett’s widow, Jane Buffett, and her co-Trustee, Richard Mozenter. Buffett’s Trust designated his wife and Mozenter as co-Trustees. After Jimmy’s death, Buffett’s widow sued her co-Trustee alleging: (i) mismanagement of the $275 Million Trust funds; (ii) failure to provide Trust details and an accounting for more than one year; and (iii) making decisions for the Trust without consulting her as the co-Trustee. Mozenter counter-sued Jane, asking the Court to remove her as a co-Trustee.
Since the day we got married, my husband and I have made a pact to take one all-inclusive vacation each year. We’ve managed to do just that for the last twenty years. Our five-day vacation has minimal requirements: sun, a beach, and complete relaxation. On our way to the airport, we play music to get us in that long-anticipated “vacation mode,” and Jimmy Buffett’s famous song, Margaritaville, is always a staple on our playlist.
Unfortunately, Buffett passed away at the age of 76 in September 2023. Two years later, Jimmy’s $275 Million Trust estate is still unresolved and at the center of a highly contested legal battle between Buffett’s widow, Jane Buffett, and her co-Trustee, Richard Mozenter. Buffett’s Trust designated his wife and Mozenter as co-Trustees. After Jimmy’s death, Buffett’s widow sued her co-Trustee alleging: (i) mismanagement of the $275 Million Trust funds; (ii) failure to provide Trust details and an accounting for more than one year; and (iii) making decisions for the Trust without consulting her as the co-Trustee. Mozenter counter-sued Jane, asking the Court to remove her as a co-Trustee.
While most of our net worths aren’t near that of Buffett, his estate planning highlights a few key factors which every person, regardless of the size of his or her net worth, should consider when crafting an estate plan:
• While there are certainly cases where co-Trustees may be a good idea, and even encouraged, think long and hard about the various issues that could arise, the powers given to co-Trustees, and the Trustees’ responsibilities and requirements you incorporate into your estate plan. Clear communication and reporting standards are essential to help prevent disputes.
• If conflicts of interest are likely (e.g., a child who serves as a Trustee but also is the Trust’s farmer or business owner, for example), explore the idea of appointing a neutral professional to help maintain balance in these specific instances.
• Ensure the Trustee nominates alternate Trustees, or appoints a Trust Protector or third party who can serve as a tiebreaker if co-Trustees reach an impasse.
• Consider including dispute resolution provisions in the Trust as a practical way to prevent lengthy and costly legal battles. Likewise, incorporating a “no contest clause” may be useful in preventing litigation, depending upon whether your state allows for this provision.
Much can be learned from the legendary music of Jimmy Buffett. Sadly, however, more can be learned following Buffett’s death; primarily, there is much more to effective estate planning than people think. In my more than eighteen years of estate planning practice, I have yet to meet a client with the same fact pattern, family dynamics, and goals. Just as all individuals are unique, so too should their estate plans be. On my next annual vacation, I’ll be sure to sing those famous lyrics: Wastin’ away in Margaritaville. Unfortunately, however, when I hear this song, my attorney brain will never let me forget the pitfalls that Buffett’s estate has experienced.
Consider all circumstances that could cause an issue and ensure your estate plan effectively and efficiently addresses each one. This careful planning epitomizes Buffett’s well-known quote: “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Plant the tree. Create the right estate plan now and save your loved ones from wasting their inheritance on costly litigation and family feuds.
The information contained above is for informational purposes only, and is not legal advice or a substitute for legal counsel. You should not act or rely upon this information.
While most of our net worths aren’t near that of Buffett, his estate planning highlights a few key factors which every person, regardless of the size of his or her net worth, should consider when crafting an estate plan:
• While there are certainly cases where co-Trustees may be a good idea, and even encouraged, think long and hard about the various issues that could arise, the powers given to co-Trustees, and the Trustees’ responsibilities and requirements you incorporate into your estate plan. Clear communication and reporting standards are essential to help prevent disputes.
• If conflicts of interest are likely (e.g., a child who serves as a Trustee but also is the Trust’s farmer or business owner, for example), explore the idea of appointing a neutral professional to help maintain balance in these specific instances.
• Ensure the Trustee nominates alternate Trustees, or appoints a Trust Protector or third party who can serve as a tiebreaker if co-Trustees reach an impasse.
• Consider including dispute resolution provisions in the Trust as a practical way to prevent lengthy and costly legal battles. Likewise, incorporating a “no contest clause” may be useful in preventing litigation, depending upon whether your state allows for this provision.
Much can be learned from the legendary music of Jimmy Buffett. Sadly, however, more can be learned following Buffett’s death; primarily, there is much more to effective estate planning than people think. In my more than eighteen years of estate planning practice, I have yet to meet a client with the same fact pattern, family dynamics, and goals. Just as all individuals are unique, so too should their estate plans be. On my next annual vacation, I’ll be sure to sing those famous lyrics: Wastin’ away in Margaritaville. Unfortunately, however, when I hear this song, my attorney brain will never let me forget the pitfalls that Buffett’s estate has experienced.
Consider all circumstances that could cause an issue and ensure your estate plan effectively and efficiently addresses each one. This careful planning epitomizes Buffett’s well-known quote: “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Plant the tree. Create the right estate plan now and save your loved ones from wasting their inheritance on costly litigation and family feuds.
The information contained above is for informational purposes only, and is not legal advice or a substitute for legal counsel. You should not act or rely upon this information.