Partner, Wealth Strategist
The ongoing marital trust dispute in Jimmy Buffett’s $275 million estate should serve as a cautionary tale not just to those with significant wealth but to anyone with a trust.
As a brief synopsis, Buffett’s widow, Jane Slagsvol, is seeking the removal of fellow co-trustee Richard Mozenter, Buffett’s business manager, after he received a $1.7 million trustee fee payout in 2024 while the marital trust earned less than 1% return on income. As the income beneficiary of the marital trust, Slagsvol has the right to require that assets are invested to produce income.
A recent Kiplinger article discussed “five things you can learn” from the dispute. To summarize the lessons:
- Suitability of co-trustees should be assessed upfront, and roles should be discussed when the trust is formally created to ensure everyone understands the responsibilities and rules.
- The document should be created to address any “what ifs” – including potential conflict. This could mean drafting provisions to allow flexibility for the removal of trustees or for naming a new corporate trustee. (These provisions can also detail payment specifics to avoid perceived overcompensation of a trustee.)
In this marital trust example, it may have been better to appoint Slagsvol as a co-trustee with a corporate trustee (rather than naming another individual trustee) given the size of the estate and the needs of this individual.
We frequently discuss these points with clients, and I have written about them in detail for Kiplinger. (These pieces are especially relevant to this example and a great resource for those wondering what questions to ask and what to consider when creating a trust.)
I encourage you to read the articles I am linking below if you need more information about how to set up a trust to provide flexibility in the future, or more information on the pros and cons of choosing a corporate trustee.
- How to Replace a Corporate Trustee (and Make Other Trust Changes): https://www.kiplinger.com/retirement/how-to-replace-a-corporate-trustee-and-make-other-trust-changes
- Choosing a Corporate Trustee: The Pros and Cons: https://www.kiplinger.com/retirement/choosing-a-corporate-trustee-pros-and-cons
As always, reach out to your Fidelis Capital team if you would like to discuss your specific needs or if you have any questions.