Money and messy headlines: what can we learn when it comes to our own estate plans?
In September of 2023, Jimmy Buffett died of a rare skin cancer. For some people, it was a headline about a famous person that felt far removed from their day-to-day life. But for his fans, which included many of my family members, his death left a chasm. And I understand why. If you read Buffett as a lyricist, he reveals himself as someone who feels deeply, someone who could tell a story with captivation.
Buffett was also a darn good businessman. He made Margaritaville more than just a song; he built a bona fide brand, including everything from hotels and cruises to restaurants and even blenders. In the process, he amassed a $275 million estate.
So, why am I writing about Buffett more than three years after his death? Because his estate is currently entangled in a very public legal battle. And I think it deserves our attention. Not as gossip, but as a cautionary tale for how we each approach our own estate planning and family needs.
In his trust, Buffett named his long-time advisor and manager, Richard Mozenter, and his wife, Jane, as co-trustees, with Jane as the primary beneficiary. After Jimmy’s death, Richard projected a safe withdrawal rate from the trust assets that Jane strongly felt was far too conservative. This and other differences of opinion related to communication and brand assets created significant friction between these trustees. And the ripple effect within the family has been powerful. One of Jane and Jimmy's daughters even publicly took a stance against Jane.
Most of us are not navigating a $275 million estate. But it doesn't take numbers that large to disrupt a family when we fail to prepare properly. And here's the part that often is forgotten in estate planning: proper estate preparation is not simply about having the right documents in place, though that is a non-negotiable foundation. It also means having the important conversations while you still can.
A well-prepared estate plan often begins with a family meeting, ideally held while everyone is healthy, present, and of sound mind, to explain why the estate is structured the way it is.
Using the Buffett situation as a lens, this means having open, candid conversations about what serving as co-trustees will actually look like in practice, if that is in your plan. Do trustees make decisions independently of one another? Or must both sign off on every decision in concert? It’s important to understand that now.
It also means honestly evaluating whether a co-trustee structure is the right fit at all. In some cases, a cleaner arrangement involves a sole trustee paired with a third-party trust protector, which is an independent party who holds the authority to remove a trustee who fails their fiduciary duty. This approach can be fairer and significantly less conflict-prone than splitting decision-making authority between two co-trustees.
A family meeting also calls for intentionality when special dynamics like blended families are involved. If a couple brings children from prior relationships into a marriage, having the right documents and structure in place is essential and so is making sure every adult child understands what happens at the first and second spouse's death, and why. That clarity helps convey that the estate plan reflects what their parents define as fair, rather than leaving that determination to a court.
And many cases, it also means talking about stewardship. What do you want the next generation to do with what you leave behind? How are you preparing them both emotionally and financially, to receive it?
As observed by the late Buffet, life is a journey best traveled with an open heart and a curious mind. I think that is the perfect sentiment to bring into the realm of our estate conversations.
Now, onto a bit of fun.
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On the page: As a fun read, I’ve just finished Maggie O’Farrell’s newest novel, Land. It is a sweeping historical novel set in Ireland in 1865, following a father and his son as they map the country for the British after the Great Hunger. It has everything from folklores, and survival, to the enduring memory of places and family roots.
In planning insights: For those that are Medicare age, don’t forget to review your options during this open enrollment period. Earlier this month, I wrote up a run down on what Medicare covers, and how to choose the right plan before enrollment ends on December 7th.
On repeat: If you’re stuck on Buffett as the guy who sang “Cheeseburger in Paradise,” may I introduce you to the Buffett who wrote “He Went to Paris”? It tells the story of a young man who goes abroad in search of answers, living an extraordinary yet tragic life along the way. He sings, some of it’s magic, and some of its tragic, but I had a good life all the way…
Until next time,
Claire
This material is intended for educational purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Advisory Services offered through Avise Financial Cooperative Inc, a Registered Investment Adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.
