Dispute Over Buffett’s Legacy Shows Two Trustees Are Not Always Better than One

Singer-songwriter Jimmy Buffett built a devoted following of “Parrotheads” through songs about living the easy life along the coastline and among the islands. Along the way, he also built a huge business empire centering on his Margaritaville brand. Some estimates say that Buffett’s fortune was approximately $1 billion when he died in 2023. Despite the devil-may-care attitude of his lyrics, Buffett was a shrewd businessman and he established multiple trusts to manage and distribute his assets upon his death. Unfortunately, he made one decision that has led to significant problems and litigation. 

When creating a marital trust, Jimmy Buffett named his wife, Jane, and his longtime financial adviser, Rick Mozenter, as co-trustees. Disagreements between Jane Buffett and Mozenter have led both to court in order to remove the other as trustee. For his part, Mozenter asserts that the marital trust gives him the right to move assets from the marital trust to a trust that he has created and has sole control over. This process is referred to as “decanting.” 

Many trusts, even those created by people without large fortunes, require joint decision-making, which can stall administration when two fiduciaries fundamentally disagree. Complex assets, such as business stakes, frequently demand quick decisions and active management. This can be extremely difficult if the people responsible for the trust cannot agree on who’s in charge. 

While revocable trusts can be revised or dissolved by the grantor during their lifetime, they become irrevocable trusts upon the grantor’s death. If you are considering appointing co-trustees, you should work with your attorney on drafting language that clarifies how a disagreement will be resolved. Alternatively, you might consider naming a professional, rather than a beneficiary or someone else close to you, as trustee or as the tie-breaker when the co-trustees reach an impasse. 

Another option is dividing assets into two trusts, with each person close to you having exclusive control over one. Removing a trustee can be a long, difficult process possibly requiring evidence that the trustee has breached their fiduciary duty or lacks the capacity to handle their responsibilities. This might be why Mozenter is seeking to take full control by shifting assets into a newly created trust. 

Donald R. Fuller, Jr., PLLC in Hickory offers comprehensive guidance to North Carolina clients on legal matters relating to trusts, including the designation of trustees. I enjoy working with individuals and families to create plans tailored to their specific situation. Please call 828-639-8188 or contact me online to schedule an appointment.