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Trustee of Late Singer Tony Bennett’s Estate Sued

What Happened to Tony Bennett’s Estate?

For many, estate planning is a distant concern. However, life events can bring it suddenly into focus. A DailyMail headline involving the late singer Tony Bennett exemplifies this. He passed without a robust estate plan, leaving his children and widow embroiled in a legal battle over his estate. We must ask ourselves an important question: how can we avoid these estate disputes?

Why Do Families Fight Over Inheritances?

Family conflicts over inheritance are tragically common. According to The Conversation, there are several reasons why these disputes arise:

  • Lack of Clear Instructions: A vague will or estate plan leaves room for interpretation and disagreement.
  • Unresolved Family Issues: Long-standing family tensions can resurface during the emotionally charged period after a loved one’s death.
  • Perceived Fairness: Different family members might have varying opinions on what constitutes a fair distribution of assets.

In Tony Bennett’s case, the daughters are suing their brothers and his widow. The brother is the sole executor of the state, and he’s allegedly failed to be transparent with his sisters.

Trustee of Late Singer Tony Bennett’s Estate Sued

Tony Bennett’s daughters, Antonia and Johanna Bennett are the plaintiffs in the suit. The defendant, their brother D’Andrea “Danny” Bennett, has allegedly mishandled the estate. According to his sisters, he has failed to disclose their father’s assets and answer their questions.

The sisters estimate the value of their father’s estate to be much greater than what their brother has reported. They specifically claim that their brother did not account for proceeds from the sale of Tony Bennett’s music catalog and image rights when he worked as their father’s manager. They’ve also named their brother Daegal “Dae” Bennett and Tony’s widow, Susan Benedetto, as defendants.

What to Learn from the Battle over Tony Bennett’s Estate

Tony Bennett’s story is a cautionary tale. Whoever is right, a lack of clarity and ambiguity in their fathers’ finances has torn a family apart. While few of us have an estate the size of Tony Bennett’s, even a more modest estate can spark strife. Avoiding litigation and protecting your wishes requires a thorough, detailed estate plan and an impartial executor.

Can You Avoid Estate Litigation?

Creating a detailed will and trusts are the foundation of good estate planning. A few key principles include:

  • Plan Ahead: Don’t wait until it’s too late. Start planning your estate now.
  • Appoint a Trusted Executor: The battle over Tony Bennett’s estate began with the executor’s alleged mismanagement. Avoiding conflicts requires choosing a capable, impartial executor.
  • Seek Professional Help: An experienced estate planning attorney can help you navigate the complexities and ensure that your wishes are honored.
  • Review and Update Your Plan: Life changes, and so should your estate plan. Regularly update your documents to reflect your changing circumstances and wishes.

How can an Estate Planning Attorney Help?

An estate planning attorney can provide invaluable assistance in several ways. They can draft a detailed will that’s legally binding and reflects your wishes. They can also set up different trusts to manage your assets, protect your wealth, and provide for your loved ones in a structured manner. Intelligent estate structuring can minimize your tax liabilities to preserve wealth for your beneficiaries. At the bottom line, a good estate planning attorney can help you protect your legacy for when you’re gone.

Reliable Estate Planning Attorneys

Don’t leave your family’s future to chance. By taking proactive steps, you can avoid the kind of disputes that Tony Bennett’s family is facing.

Contact us today to protect your estate. Our team is here to help you create a comprehensive estate plan that honors your wishes and protects your loved ones.

Key Takeaways

  • Avoid Family Disputes: Proper estate planning can help prevent conflicts among heirs.
  • Clarity and Communication: Clear instructions and open communication reduce misunderstandings.
  • Select a Reliable Trustee: Choosing a trustworthy executor is crucial for smooth estate administration.
  • Regular Updates: Keep your estate plan current to reflect life changes.
  • Professional Guidance: An estate planning attorney can ensure that your wishes are legally sound and honored.

References: DailyMail (June 15, 2024) “Tony Bennett’s daughters break their silence after suing brothers and late singer’s widow amid bitter inheritance battle over their father’s estate” and TheConversation (May 17, 2022) “Why families fight over inheritances – and how to avoid it”

Can I Motivate My Heirs After I’m Gone?

When providing what should happen to your property upon your death, language in an estate plan should be clear, direct and unambiguous. Using unclear language can lead to confusion and disagreements between beneficiaries and a longer and more expensive probate process.

Kiplinger’s recent article entitled “I Wish I May, I Wish I Might: Estate Planning’s Gentle Nudge” says it would seem that using phrases such as “I wish,” “I hope” or “I desire” — known as precatory language — would never belong in a will or trust. However, there are three important cases where it can be helpful to include non-binding guidance for your loved ones and estate representatives.

  1. You want to encourage your beneficiaries to work with a professional. Baby Boomers will pass on more than $70 trillion in wealth to younger generations. Working with an adviser can help preserve and protect assets and set beneficiaries up for a positive working relationship with a trusted professional. If you have a great relationship with your financial adviser and estate planning attorney and want to encourage your beneficiaries to consider working with them, your will could be a great way to communicate this message. Consider the following wording:

“I desire that my children consult with our family adviser, Sally Brown, or another competent professional adviser of their choosing to manage their inheritance.”

Putting language in your will that encourages your loved ones to take action and meet with an adviser to help manage their inheritance could be just the reminder they need to set an appointment after you pass.

  1. You want to encourage your co-trustees to collaboratively make decisions, even if decision-making isn’t unanimous. For example, if you have named three or more co-trustees, you may have said they act by majority consent to streamline the decision-making process. You can express a desire to see your trustees work through decisions constructively and collaboratively — even if their final decisions aren’t made by unanimous agreement.
  2. You want to encourage your trustee to consider certain parameters when making decisions about trust distributions. A typical trust arrangement gives an independent trustee the power to make distribution decisions to beneficiaries at their sole discretion. This gives the trustee the most flexibility to ensure that the beneficiaries’ needs are met to the appropriate extent. You can add factors for the trustee to consider in exercising their discretion, such as if the beneficiary has ample funds apart from the trust funds or if the particular need at stake would likely have been supported were you still alive. Giving your trustee some guidance (“I encourage my trustee in the exercise of their discretion to consider requests related to educational pursuits”) can help them make decisions, while simultaneously not tying their hands if they ultimately decide a different route is in the beneficiaries’ best interest.

Your estate planning documents should be clear about where your property should go on your death and who should manage it. When appropriately used, precatory language can help communicate essential guidance to your family.

Reference: Kiplinger (March 21, 2023) “I Wish I May, I Wish I Might: Estate Planning’s Gentle Nudge”

Disney Grandson Loses Appeal of Probate Court’s Decision

Bradford Lund, Walt Disney’s adult grandson, lost an appeal in a battle with a Los Angeles probate judge who appointed a guardian ad litem without a hearing and rejected a proposed settlement that would have given Lund a $200 million inheritance, says this recent article “Walt Disney’s Grandson Loses Appeal in Fight for $200M Inheritance” from The Hollywood Reporter. Despite its decision, the appellate court described the probate court’s behavior as “troubling.”

In 2020, Lund filed a lawsuit in California federal court arguing that his due process was violated when a County Superior Court judge rejected a settlement reached by family members and trustees. The judge appointed a guardian ad litem, even though an Arizona judge had determined that Lund was not incapacitated and another judge in California stated that Lund had the capacity to choose new trustees.

The lawsuit was later amended to include a claim under the Americans With Disabilities Act because in the 2019 settlement, Judge Cowan had stated that he would not give 200 million dollars to someone who may suffer, at some level, from Down syndrome.

Six months later, a U.S. District judge dismissed the matter. During the appeals process, the Superior Court discharged the guardian ad litem and granted Lund’s request for a new judge.

The 9th Circuit Court of Appeals affirmed the dismissal, finding that most of Lund’s claims had become moot, as a result of the judge recusing himself and removing the guardian ad litem. The panel also held that, while the judge’s statements were inappropriate and without factual basis, they were protected by judicial immunity.

It may be small comfort to Lund, but the 9th Circuit judge criticized the probate court and acknowledged his frustration with the system. The district judge no longer serves in probate court, although no connection between his departure and the Lund matter was recognized by the 9th District.

Regarding the ADA claim, the panel of 9th Circuit judges says that judges must remain completely independent, and subjecting judges to liability for grievances of litigants would compromise that.

Reference: The Hollywood Reporter (July 16, 2021) “Walt Disney’s Grandson Loses Appeal in Fight for $200M Inheritance”

What Paperwork Is Needed after Someone Dies?

Tax return issues, family matters, business associates, partners, trustees, bankers, investment advisors and tax collectors from the IRS to state and local taxing authorities all require attention after someone has died. There is a lot of work, and often a grieving family member finds it helpful to enlist the aid of a professional to lighten the load. A recent article, “Checklist for Working With a Decedent’s Estate” from Accounting Web, contains a list of the tasks to be completed.

General administration and legal tasks. At the very earliest, the executor should create a timetable with the known tasks. If you’ve never done this before, there’s no shame in enlisting help from a qualified professional. Be realistic about your familiarity with tax and legal issues and your organizational skills.

Determine with your estate planning attorney whether probate is necessary. Is the estate small enough for your state’s laws to allow you to expedite the process? Some jurisdictions can do this, others do not.

If an estate plan was created and executed properly, many assets may not need to go through probate. Assets like IRAs, joint tenancies, accounts that are POD, or Payable on Death and any assets with named beneficiaries do not require probate.

Gather information about family owners or others who may have a claim to the estate and who may have useful information about the assets. You’ll need to locate and notify heirs of the decedent’s passing.

Others who need to be notified, include charities named in the will. You’ll need to identify prior transfers to charities that were partial transfers, such as Charitable Remainder Trusts. If there is a charitable remainder trust with a retained lifetime income interest, it will need to be in the estate tax return, albeit with an offsetting estate tax charitable deduction.

Locate the important documents, including the will, any correspondence relating to the will, any letters explaining the decedent’s wishes, deeds, trusts, bank and brokerage statements, partnership agreements, prior tax returns, federal and state tax forms and any gift tax returns.

An estate planning attorney will be able to help determine ownership issues, including identifying assets and liabilities. This includes deeds, vehicle titles, club memberships, personal possessions and business assets, including copyrights and patents.

Social Security will need to be notified, as will Medicare, pension administrators, Department of Veteran Affairs, the post office, trustees, and any service providers.

Filing taxes for the last year of the person’s life and their estate tax filing needs to happen on a timely basis. Even if an estate tax return may not be required, it is useful to file to establish date of death values for assets. It is important to resolve income tax statute of limitation issues and any IRS or state examination issues.

Estate administration is a big job, especially if you’ve never done it before. Having the help of an experienced estate lawyer can alleviate much of the worry that comes with settling an estate.

Reference: Accounting Web (March 19, 2021) “Checklist for Working With a Decedent’s Estate”

digital property protection

Does Your Estate Plan Include Digital Property Protection?

One of the challenges facing estate plans today is a new class of assets, known as digital property or digital assets. When a person dies, what happens to their digital lives? According to the article “Digital assets important part of modern estate planning” from the Cleveland Jewish News, digital assets need to be included in an estate plan, just like any other property.

What is a digital asset? There are many, but the basics include things like social media—Facebook, Instagram, SnapChat—as well as financial accounts, bank and investment accounts, blogs, photo sharing accounts, cloud storage, text messages, emails and more. If it has a username and a password and you access it on a digital device, consider it a digital asset.

Business and household files stored on a local computer or in the cloud should also be considered as digital assets. The same goes for any cryptocurrency; Bitcoin is the most well-known type, and there are many others.

The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) has been adopted by almost all states to provide legal guidance on rights to access digital assets for four (4) different types of fiduciaries: executors, trustees, agents under a financial power of attorney and guardians. The law allows people the right to grant not only their digital assets, but the contents of their communications. It establishes a three-tier system for the user, the most important part being if the person expresses permission in an online platform for a specific asset, directly with the custodian of a digital platform, that is the controlling law. If they have not done so, they can provide for permission to be granted in their estate planning documents. They can also allow or forbid people to gain access to their digital assets.

If a person does not take either of these steps, the terms of service they agreed to with the platform custodian governs the rights to access or deny access to their digital assets.

It’s important to discuss this new asset class with your estate planning attorney to ensure that your estate plan addresses your digital assets. Having a list of digital assets is a first step, but it’s just the start. Leaving the family to fight with a tech giant to gain access to digital accounts is a stressful legacy to leave behind.

Reference: Cleveland Jewish News (Sep. 24, 2020) “Digital assets important part of modern estate planning”

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