Jimmy Buffet and Jeff Bezos’s estate plans have been in the news this month and each offers a valuable lesson. Also in the news this month, long term care planning, interpreting emojis in estate plans and David Lynch’s estate sale.
Trouble in Margaritaville
There’s a legal battle brewing in Margaritaville. Earlier this month, Jane Buffett filed a petition in Los Angeles court to remove her co-trustee from the marital trust created for her benefit. According to court filings, Jimmy Buffet’s set up a marital trust for the benefit for his wife, Jane, following his death in 2023. The trust names Jane and Jimmy’s business manager, Richard Mozenter, as co-trustees of the marital trust. The estate is estimated to be worth $275 million. Now, Jane alleges that Mr. Montezer charges excessive fees, mismanaged trust assets and that he has been hostile and adversarial towards her.
This story isn’t as uncommon as you might think. It’s fairly common for clients to want to name two co-trustees in their estate plan. They think that they will get along and make decisions together. Some clients think the business-minded co-trustee will take the financially-non-savvy trustee under their wing, and protect them from making any financial mishaps. They think they’ll help each other. Instead, what often happens is they get in each others way, fail to make decisions, and hurt each others feelings. This is only exacerbated when one of the co-trustees is the beneficiary of the trust as well.
There is a lesson here. Think carefully before you name co-trustees. Ask yourself if they will actually get along when you aren’t there to keep the peace.
Jeff Bezos’s Pre-Nup
Jeff Bezos married former news anchor Lauren Sanchez in Venice this month. Like with most celebrity weddings, news outlets were reporting on the dress, the location and the attendees. But, reporters also focused on a less common topic- their pre-nuptial agreement. Which is funny, because we actually know next to nothing about the pre-nup. That hasn’t stopped media outlets from speculating as to what might be contained in the agreement though.
Part of the intrigue around Bezos’s pre-nup stems from the fact that he didn’t have one with his ex-wife Mackenzie Scott, who he married in 1993 before he started Amazon. Scott is reported to have received about $36 billion in Amazon stock in their divorce settlement. It has also opened the door for articles about why you might want a pre-nup even if you don’t have Bezos-level bucks.
Now, you might be thinking, why are you talking about pre-nups? This is an elder law newsletter, not a family law newsletter! Clients often don’t realize that their pre-nuptial agreement (or post-nuptial agreement) can also dictate what happens if a spouse dies while they are still married or limit their ability to alter their estate plan. Pre-nuptial and post-nuptial agreements can have a huge impact on estate planning documents. The lesson- if you have one, share it with your estate planning attorney and read it carefully.
Long Term Care
The Center for Retirement Research at Boston College has found that only one-fifth of retirees will require no long term care support. Meanwhile they fund that another one-fifth will likely experience a severe need and the other three-fifths will have low or moderate needs. But, this New York Times article explores how long term care costs are rising and labor shortages are prevalent. Also, an estate plan can help.
Other Stuff
- Legendary writer and director David Lynch died in January of this year. His estate sale turned heads. The amount of movie memorabilia impressed fans. So did the sheer quantity of coffee gadgets.
- Does a text from grandma saying “I want you to have it all 💸💰☠️😇” count as testamentary intent? Courts are now being tasked with interpreting emojis in estate planning cases.
- A bankruptcy court decision out of California might surprise estate planning attorneys.
- The Earl of Yarmouth lost his £85 million estate legal battle. One lesson from the case- a claimant’s belief that the trustees have failed in their duties or should have acted differently is not a sufficient basis for finding that they have failed in their duties.
- Trump is trying to drum up support for his tax bill and is pushing to have it on his desk by July 4. Recent drafts of the bill seem to be in favor of keeping the estate tax exemption high. Of course, nothing is set in stone yet though.
