When Co-Trustees Clash: Lessons From Jimmy Buffett’s Estate

After a four year battle with a rare form of skin cancer, Merkel cell carcinoma, Jimmy Buffett - famed musician and businessman – passed away on September 1, 2023. At the time of his death, his estate was estimated to be worth $275 million.

Buffett is survived by his wife of 47 years, Jane, and their three children. Most of his assets were placed in what’s called a Marital Trust – set up primarily to take care of Jane, with the children to benefit after her passing.

Here’s where things got complicated. The trust named Jane and Buffett’s long-time accountant, Richard Mozenter, as co-trustees. Unfortunately, the two have clashed bitterly over how the trust should be managed, leading to expensive litigation with each trying to remove the other as co-trustee. They’re two years in, and just this month a judge has ordered them to attend mediation.

From what I’ve read, the documents weren’t necessarily the issue. The real problem seems to be communication and trust. Jane is angry because she can’t control the trust, and she claims Mozenter is being adversarial to her. Mozenter claims that Buffett never wanted Jane to have full control, and she isn’t cooperating with him.

I think it’s safe to assume Buffett never intended for the two to end up in this kind of fight when he put his estate plan together.

The takeaway? Most of us don’t have $275 million estates, but the same principles apply no matter the size of your estate. Who you choose to manage your trust matters just as much as the legal documents themselves. Family members may not always be the best fit, especially if their personalities are likely to clash. Whoever you name needs to be able to communicate, cooperate, and work together – because once trust breaks down, conflict and costly legal battles often follow.

This is a great example of how important it is to also have a discussion with your heirs ahead of time. Share your wishes and expectations now, so they aren’t left guessing later. Time and again, I hear stories about the family conflict that was endured after a loved one passed. Some families even being torn apart. Not because the documents weren’t in place, but because the communication was missing.

Clear communication is the best way to prevent misunderstandings – and protect both your family and your legacy.