When Jimmy Buffett passed away in 2023, he left a legacy of a beach lifestyle where it’s always time for a margarita. But the same laid-back island vibes are in direct contrast to the battle now underway between his widow and a co-trustee.
Jane Buffett and co-trustee Richard Mozenter filed lawsuits against each other. She wants him to be removed, alleging Mozenter has been openly hostile and adversarial. She says he won’t give her any details about the trust and is collecting excessive fees, mismanaging assets, and projecting income with an annual return of less than 1%.
For his part, Mozenter filed a lawsuit of his own in Palm Beach County, alleging that she’s been uncooperative in allowing him to manage the trust, interfering with business decisions, refusing to meet with him breached her own fiduciary duties.
Jimmy Buffett’s empire includes hotels, retirement villages, cruise ships, casinos, his song catalog, planes, cars, homes, and merchandise. The estate includes $34.5 million in real property, $15 million in an airplane ownership company, $2 million in musical equipment, $5 million in vehicles and $12 million in other investments. His stake in Margaritaville is estimated at $85 million, owned through JB Beta.
Buffett believed in estate planning, as evidenced by his first will having been created more than 30 years ago, amended in 2017 and again in 2023. He directed most of his assets to be placed in a marital trust for Jane. The trust was for her benefit for her lifetime, with the couple’s three children as the remainder beneficiaries, meaning they will receive any remaining assets after Jane’s passing.
He also appointed a co-trustee to manage the trust. Mozenter is an accountant who had been Buffett’s business manager and financial advisor for thirty years. That’s a strong track record and on paper, it makes sense.
The relationship between the two trustees went south shortly after Buffett’s death, with Jane saying Mozenter refused to provide information and the projected income from the trust way below her expectations.
While the battle over the Margarita millions continues, we are preparing our clients and their family members for what’s being called the Great Wealth Transfer, expected to occur over the next 25 years. More wealth being passed down often leads to more litigation, unless families take steps to update estate plans, communicate with heirs and clarify their expectations.
Dueling trustees are not an unusual source of dispute, although having two trustees on a marital trust is good practice. If only one person is the trustee, there may be problems of a different sort.
The challenge for this lawsuit is simple: the trust owns 20% of Jimmy Buffett’s Margaritaville brand, and it paid out $14 million in 18 months. The drastic drop to $2 million is unusual and it’s hard to think a recipient wouldn’t challenge such a dramatic disparity.
But there was one thing that could have been done—which we do routinely for clients.
No one was appointed to serve as a Trust Protector. In simple English – a Trust Protector can be given some limited powers over a trust, including the ability to remove or replace a Trustee. This can be a third party and should be a trusted person who can oversee the trust and its management. Think of it as a referee or safety valve for the trust. In this situation, they could have replaced Mozenter even if there was no wrongdoing and would not need to prove wrongdoing in court to have him removed.
Even a massive estate like Jimmy Buffett’s can run into trouble if the planning isn’t solid. This fight might have been avoided with clearer documents, better trustee coordination, and a Trust Protector in place. It’s a reminder that estate planning isn’t just about dividing assets. It’s also about ensuring the people left behind aren’t left in the dark—or stuck in a courtroom.
When appropriate, our office appoints a Trust Protector. It can also be used for trusts created for children. The only requirement is the new trustee must be independent of the beneficiary, It means the trustee cannot be related to the beneficiary. Please call our office to learn more about adding a Trust Protector to your estate plan.
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