Larry Marano \/ Shutterstock.com <\/p>\n
Check Out: Warren Buffett Offers One Piece of Estate Planning Advice to the Middle Class<\/a><\/p>\n Read Next: Warren Buffett: 10 Things Poor People Waste Money On<\/a><\/p>\n According to Slagsvol, the trust is estimated to receive less than a 1% return rate \u2014 not enough to cover her annual expenses. Along with this, Mozenter received $1.7 million in trustee fees in 2024.<\/p>\n In response to all this, Mozenter also seeks to remove Slagsvol as co-trustee.<\/p>\n If you\u2019re a millionaire, you could learn a few things from the way Jimmy Buffett handled his estate so you don\u2019t make the same mistake<\/a>.<\/p>\n When you have a massive estate, it\u2019s crucial that you choose your trustee<\/a> \u2014 or trustees \u2014 carefully. It\u2019s not always enough to pick someone you\u2019ve known for a long time or who you\u2019re married to.<\/p>\n \u201cChoose your trustee like you\u2019d choose a CEO; someone trustworthy, financially literate and emotionally neutral. If you don\u2019t have that person within the family, appoint a professional or corporate trustee,\u201d said Craig Parker, assistant general counsel at Trust & Will<\/a> and a California state bar-certified specialist in estate planning, trust and probate Law.<\/p>\n With larger, complex estates, having co-trustees can be a good strategy. But you\u2019ll want to make sure they trust one another and work well together. If all else fails, you could name a trust protector who will step in if either trustee can no longer perform their role.<\/p>\n Learn More: The Estate Planning Secret the IRS Doesn\u2019t Want You To Know, According To John Liang<\/a><\/p>\n The importance of being clear with how you want your assets managed and doled out can\u2019t be understated. While Buffett might have believed choosing his wife and business manager as co-trustees was enough, anything that\u2019s left unclear can lead to major legal battles down the road.<\/p>\n Story Continues <\/p>\n \u201cClear, detailed estate planning<\/a> is essential. That means establishing a comprehensive trust, updating it regularly and communicating intentions openly with beneficiaries,\u201d said Parker. \u201cClarity reduces conflict; vagueness invites it.\u201d<\/p>\n A couple of ways to prevent conflict is to include a \u201cno-contest\u201d clause or mediation provisions in your estate. That way, there\u2019s no question of what happens with your assets. And if anyone does argue the point, they risk ending up with nothing at all.<\/p>\n When you\u2019re setting up your trust, it might behoove you to choose someone who\u2019s impartial. This means picking somebody who isn\u2019t incentivized to use their role as co-trustee to benefit themselves or their business.<\/p>\n \u201cIt would be wise to use trust administrators who don\u2019t have a financial interest in the trust assets as well as those who aren\u2019t emotionally involved in the relationships so they can be more professional,\u201d said Travis Christiansen, attorney at Boyack Christiansen Legal Solutions<\/a>.<\/p>\n This could also mean choosing a professional fiduciary or a trust company instead of a personal relation. Even though it can be pricey, going this route can help ensure everything goes as planned.<\/p>\n Professional fiduciary fees generally range from 1% to 1.5% of your trust assets each year. Some will charge on an hourly, monthly or yearly basis instead.<\/p>\n Part of the issue is that Buffett had two co-trustees when, in fact, it might have been better to have a full team to administer his estate.<\/p>\n \u201cIf you have a massive estate, you need to build a team of professionals to create an estate, tax and financial plan<\/a> that ensures your wishes are followed. Lack of planning can cost you 40%-plus of your estate in taxes,\u201d said Jay Zigmont, PhD, CFP\u00ae, founder and visionary of Childfree Trust<\/a>.<\/p>\n Among other professionals, consider having a reputable attorney, trustee and financial advisor<\/a> involved in your estate planning.<\/p>\n More From GOBankingRates<\/p>\n This article originally appeared on GOBankingRates.com<\/a>: $275M Inheritance Fight: What Every Millionaire Can Learn From Jimmy Buffett\u2019s Mistake<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Renowned singer-songwriter Jimmy Buffett died in September 2023, leaving behind a $275 million estate. The bulk of Buffett\u2019s…\n","protected":false},"author":2,"featured_media":16437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,17759,8256,186,17756,17755,17758,184,185,17757,15101],"class_list":{"0":"post-16436","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-business-manager","12":"tag-estate-planning","13":"tag-finance","14":"tag-jane-slagsvol","15":"tag-jimmy-buffett","16":"tag-marital-trust","17":"tag-personal-finance","18":"tag-personalfinance","19":"tag-richard-mozenter","20":"tag-warren-buffett"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/16436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=16436"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/16436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/16437"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=16436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=16436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=16436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}