The late singer’s estate of $275M is turning into one big lawsuit. Jimmy Buffett’s widow, Jane Buffett, filed a suit last week in a Los Angeles court to remove her co-trustee, Richard Mozenter, from the marital trust created to support her after Buffet’s death in 2023.
Mrs. Buffett, who married Jimmy in 1977, alleges that Mozenter has been “openly hostile and adversarial” toward her and has refused to give her details on the trust and its financials. She alleges in the suit that Mozenter is collecting “excessive fees” of $1.7 million a year and that he’s mismanaging the trust assets.
Mozenter has filed his own lawsuit in Palm Beach County, Florida, alleging that Jane has been “completely uncooperative” in his efforts to manage the trust. He said Jane has interfered in business decisions, refused to meet with Mozenter, and breached her fiduciary duties by “acting in her own interest.”
Buffett’s will, first written more than 30 years ago and amended in 2017 and again in 2023, directed that most of his assets be placed in a marital trust for Jane. The trust was created “for the wife’s sole benefit of her lifetime,” according to legal filings. The three children they shared, are the remainder beneficiaries of the trust, which means they’ll receive any remaining assets left after Jane’s death.
Mr. Buffett also called for a co-trustee to manage the trust with Jane. He appointed Mozenter, an accountant who had also been his business manager and financial advisors for 30 years, as co-trustee.
The assets Buffett left were substantial. A successful businessman and entrepreneur, Buffett built a brand empire and merchandising business that far surpassed his song rights and touring.
According to the filings, the assets in the estate include…
1 – $34.5 million of real property
2 – $15 million of equity in a company called Strange Bird Inc., which held Buffett’s interest in various airplanes
3 – $2 million in musical equipment
4 – $5 million in vehicles
5 – $12 million in other investments
6 – And Buffett’s stake in Margaritaville, the chain of restaurants, bars, hotels and merchandising that commercialized the Buffett lifestyle.
According to the filings, Buffett’s equity in Margaritaville was estimated at $85 million. Margaritaville currently has 30 restaurants and bars, 20 hotels, and vacation clubs, casinos, cruise ships and merchandise.
Let me leave you with this…
This is such a common problem in estate tax law that it’s almost not worth writing about because it isn’t new or news in the first place. Sadly, it’s a tale as old as time.
A successful business person passes on and is afraid to leave everything to their spouse. So they appoint a co-trustee to the trust and what happens?
The two trustees start fighting and it turns into one big lawsuit.
Generational wealth is something that I’ve studied for years. Once you get past all of the thieving and back stabbing, the saddest part is the numbers that go like this.
Only 30% of generational wealth goes to the second generation and only 10% of that makes it to the third.
The numbers blow me away. A successful entrepreneur works hard, kills themselves to do something of substance in this life, and that’s the average result.
In 36 years of practice, I’ve seen it all. Mothers stealing from children. Children thieving from their own mothers. Caregivers stealing from the entire family. And don’t even get me going on the in-laws and step-children.
Sooner or later someone figures out what’s happening and they do the only reasonable thing they can which is to call a lawyer. The lawyer then does the only thing that a lawyer can do which is file a lawsuit and what do you have?
One big mess. After the lawyers are done, what happens? 30% goes to the second generation and 10% makes it to the third.
The only advice I can possibly give is to not leave your money to anyone who can’t manage it. If they can handle it, they’ll keep it. If they can’t, they’ll find a way to lose it to someone who’s smarter than they are.
On that happy note, have a great weekend.
We’re all going to get through this. Let’s get through it together.
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