By John M. Goralka
Sacramento, CA
Tony Bennett will be forever remembered for his passionate performances in which he truly gave his all. Despite belonging to the rock ’n’ roll era, he chose instead to focus on elegant, classic vocals such as those by Frank Sinatra, Bing Crosby and Nat King Cole. Sinatra believed Bennett was the best singer in the world.
Bennett died in July 2023 at the age of 96. He was diagnosed with Alzheimer’s disease in 2016. Tony was survived by his wife, Susan Crow, and his children D’Andrea, Daegal, Johanna and Antonia.
The estate is currently in litigation between some of the beneficiaries and the trustee. This article was inspired by a recent conversation with Antonia and Johanna Bennett. Its purpose is not to address the specifics of the litigation, but rather, the effects of the litigation on the family and to offer steps that other families enduring the death of a parent can take to avoid litigation over the estate and the emotional anguish that it causes.
One of the main advantages of a trust-based estate plan is to avoid formal probate proceedings in court. Probate proceedings are typically much more expensive, take longer to complete and are public information (note that some Nevada court proceedings and trust jurisdiction can help maintain privacy and secrecy). However, without any court supervision, there is very little trustee oversight. Disagreements can easily become formal litigation or lawsuits.
Here are four recommendations that could help head off disagreements over an estate:
1. Transparent and timely communication by the successor trustee
Both Antonia and Johanna feel that transparent and timely communication is the most important factor in minimizing inheritance disputes. When beneficiaries receive little information in a piecemeal format, the information received may actually raise more questions than answers.
When a public figure is involved, beneficiaries may even learn about some issues or facts in the news rather than from the successor trustee. Beneficiaries not receiving information on a timely basis will often fear that improper actions are being taken or even that the required actions are not being performed.
2. Consider family dynamics in the estate plan
Tony Bennett is survived by a blended family. D’Andrea and Daegal are 15 to 20 years older than Antonia and Johanna. D’Andrea and Daegal grew up in New Jersey, while Antonia and Johanna grew up in California. Tony loved them all and treated them all equally as children. They shared family traditions, such as meeting after his performances, celebrating Thanksgiving at a restaurant as a family and, of course, sharing the Christmas holidays.
The age differences between the two groups meant that each sibling group would have milestone life events, hobbies and activities, such as sports, at different times. D’Andrea and Daegal started their independent lives as young adults while Antonia and Johanna were quite young. The siblings simply didn’t have much in common while growing up. Blended families like theirs face greater challenges to form a single, cohesive family unit.
Therefore, choosing a trustee from only one side of a blended family may not provide the best protection from disputes during the trust or estate administration. I have some clients who want both sides of a blended family to have equal participation in the administration. One member from each side of the family could be appointed as a co-trustee.
To minimize the effect of disputes between the co-trustees, my firm would utilize an independent “tie breaker” to resolve disputes. In the event of a disagreement, each co-trustee would explain his or her concern and issue to the tie breaker, who would make a King Solomon-type decision to resolve the dispute that the co-trustees were bound to follow.
3. Consider a professional trustee
As an attorney, I often discuss the use of a professional trustee for a blended family. This prevents a related-party trustee from letting family baggage influence his or her decisions as a trustee. I also discuss this even in the absence of a blended family when one sibling is overseeing or controlling the share received by a brother, sister or other relative. Will that sibling have the emotional strength to say “no,” if that is appropriate? Will their relationships be affected by the decisions made by the sibling? If the distribution of a share is withheld or delayed, could that share later be distributed by the trustee making that decision?
For example, a brother is the trustee for his sister’s share. That share would go to the brother if not distributed to the sister during her lifetime. This creates an immediate conflict of interest. I often ask the client what Thanksgiving or Christmas would be like if there is unhappiness due to a trustee’s action or inaction.
A professional trustee would never be a potential beneficiary and prevents a perceived conflict of interest in making decisions. Both Johanna and Antonia believe that having an impartial and knowledgeable professional acting as the trustee would help prevent future disagreements and disputes between family members. Tony Bennett certainly wanted his family to continue to be a family after his death, as virtually all of my clients who are parents do, to continue family traditions and for the future generations to know one another and celebrate their lives together.
A professional trustee is even more important for a public figure and for a high-net-worth individual. Tony Bennett fits both categories. He was one of the most famous artists in the world whose fans developed an almost personal relationship with him due to his passionate voice and performance.
Tony Bennett was both a high-net-worth individual and a “business” that continues to operate. Intellectual property including music and recordings will continue to be sold for decades or even generations to come. This creates a complexity that calls for a professional trustee to ensure fairness, transparency and confidence for the beneficiaries.
4. Consider a collaborative plan
Both Antonia and Johanna indicated that their father discussed his estate plan many times, along with his intent to treat his kids equally.
In a Thanksgiving letter to shareholders, Warren Buffett described how his children read his estate plan and were provided an opportunity to provide feedback and ask questions. Buffett indicated that he learned this collaborative and transparent process for estate planning from his father. Buffett’s father also permitted him to read his estate plan, ask questions and provide comments. This may be particularly beneficial for high-net-worth families whose estates can be exceedingly complicated because of the type, diversity and value of the assets owned.
When beneficiaries are allowed to see the plan and get answers to their questions, they do not end up asking “why” when there is no one to answer.
A collaborative plan may not be for everyone. Lawyers are often taught, or otherwise learn, to be aware that their client may be improperly influenced or manipulated by others. We are careful to always meet alone with the client at some point to be sure that is not happening and also to be able to testify or confirm that fact in the event of a dispute.
That said, for the right person, particularly a high-net-worth family or someone with an otherwise complex estate or needs, a collaborative plan may be the best way to identify that client’s or family’s true wishes and needs. A collaborative plan may also be the best way to avoid litigation and for the family relationships to remain intact.
Careful planning is needed along with transparent communication to keep families together after the parents pass. The emotional challenge of a loss is difficult in and of itself. Avoiding unexpected results or surprises is critical to keep the family together. While Tony Bennett left us an amazing musical legacy, I am sure that he would say his greatest legacy is his family.
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