When iconic singer-songwriter Jimmy Buffett passed away in 2023, few expected that his carefully crafted estate plan would become the subject of controversy. But in a recent petition filed in Florida, Buffett’s wife, Jane Buffett, alleges that a co-trustee of her late husband’s estate slashed her income from the trust to less than 1%, acted with hostility, and failed to be transparent. Now she’s asking the court to have that co-trustee removed.

This case is a cautionary tale for anyone creating or managing a trust. Trustees wield tremendous power and discretion. A poor choice can jeopardize a family’s financial well-being and emotional peace.

What Is a Trustee—and Why Does It Matter?

A trustee is the individual or institution legally appointed to manage and administer the assets held in a trust. A trustee’s duties may include everything from investing assets to distributing income and principal to beneficiaries. A trustee is bound by fiduciary obligations—duties of loyalty, care, impartiality, and full disclosure. But within those boundaries, trustees often have wide latitude in making decisions.

In Jimmy Buffett’s case, that discretion may have allowed the co-trustee to make drastic changes to how assets were distributed to the widow, even if it conflicted with her expectations or the family’s overall intent.

Jimmy Buffett’s Estate Dispute: A Real-World Example

According to the petition filed in Florida, Jane Buffett accuses a co-trustee of the Jimmy Buffett estate of reducing her share of income to below 1% and creating an atmosphere of hostility and secrecy. While the full details of the trust terms are not public, this level of conflict highlights a common estate planning pitfall: selecting a trustee who may not be aligned with your intentions or who is unwilling to communicate transparently with beneficiaries.

Trust disputes like these are not reserved for celebrity estates. They happen when trustees operate unchecked or when families don’t anticipate the potential for conflict no matter the value of the estate/trust.

How to Choose the Right Trustee

Choosing the right trustee is arguably one of the most important decisions in the estate planning process. Consider the following:

• Trustworthiness: This is non-negotiable. The person or institution you select must be someone you would trust with your finances, your privacy, and your family’s well-being.
• Financial Competency: Trustees must manage investments, handle tax matters, and make distribution decisions. Basic financial literacy is essential.
• Transparency and Communication: A good trustee keeps beneficiaries informed and avoids secrecy. Lack of communication breeds mistrust—and lawsuits.
• Relationship Dynamics: If you’re considering a family member, think carefully about whether they can manage the role without bias or conflict.
• Professional Trustees: In some cases, hiring a bank or corporate trustee is a safer option. Professionals can bring neutrality, experience, and structure, especially in high-value or complex estates.

When considering whether to name a sibling, friend, or professional trustee, remember to take into account the trust’s complexity, the family dynamics, and the trustee’s capabilities.

Can a Trustee Be Removed?

Yes, but it’s not easy, and it’s rarely quick. In Maryland, Virginia and D.C., a beneficiary can petition the court to remove a trustee for reasons such as:

• Breach of fiduciary duty
• Hostile or uncooperative behavior
• Mismanagement of trust assets
• Failure to provide information or accountings

However, this process can be expensive and emotionally taxing. It’s much easier to prevent a conflict through sound planning than to resolve one through litigation.

Drafting Trusts to Prevent Disputes

To reduce the risk of future litigation or trustee abuse, your estate plan should include safeguards such as:

• Clear language around distribution standards (e.g., specifying what qualifies as “income” or “support”)
• Requirements for co-trustee consent on major decisions
• Periodic accountings or third-party audits
• A trust protector clause—naming someone with the power to remove or replace the trustee if issues arise

Working with an experienced estate planning attorney can help ensure these provisions are tailored to your goals and your family’s needs.

Conclusion

The Jimmy Buffett estate dispute is a reminder that even a well-funded, professionally prepared trust can go awry if the wrong person is in charge. Trustee selection is more than an afterthought—it’s central to the success of your estate plan.

If you’re creating a trust, administering one, or concerned about a trustee’s conduct, please contact Jennifer Schiffer at 703.526.5590 or jschiffer@beankinney.com.

This article is for informational purposes only and does not contain or convey legal advice. Consult an attorney. Any views or opinions expressed herein are those of the author and are not necessarily the views of the firm or any client of the firm.