The velvety-smooth voice and charm of Tony Bennett will long be remembered by several generations, since it spanned nearly eight decades. Hopefully, the estate battle now underway, reported in a recent Kiplinger article, “What We Can learn from Tony Bennett’s Estate Dispute” won’t take as long.
In 1994, Tony Bennett created a trust, naming himself and his son Danny as co-trustees. The trust was partially funded. His wife, Susan, and children, Antonia, Danny Dae, and Johanna, were all listed as beneficiaries. Upon his death in 2023, Danny became the sole trustee.
In June 2024, Johanna and Antonia filed a lawsuit saying Danny didn’t account for all trust assets and sales or other transactions about the trust assets. They also said he received personal benefits from these transactions.
Danny was more than a trustee—he was also his father’s manager. Benedetto Arts, LLC was formed to hold certain properties and estates. Danny was named manager of the LLC, and all of the children and the family trust held membership interests.
According to Tony Bennett’s will, any tangible property not transferred to the trust was to be distributed to his children equally. This included property, pictures and assets bearing his likeness.
The lawsuit alleges that before Tony Bennett died but after he was diagnosed with Alzheimer’s, Danny sold items of his father’s memorabilia as well as his name and likeness. He received large commissions through RPM Productions, a separate company Danny owned. The lawsuit further alleges that Danny received loans of $1.2 million from his father.
Transparency among siblings is critical. Especially when large amounts of money are at stake, siblings need to be able to communicate with each other openly and honestly. Once litigation begins, it has a way of growing, leading to expenses and family discord.
Professional or corporate trustees should be considered with large estates. A professional, non-family member with no personal stake in the estate would have been a better option to manage the complex structures involved in the Bennett estate. Having one child serve as personal manager, trustee, LLC manager and also being a beneficiary made it next to impossible to avoid any conflict of interest.
As Tony Bennett’s competency decreased, the potential for conflicts of interest increased. Even if Tony Bennett was competent for some transactions, he may have been susceptible to coercion or undue influence.
Even if you’re not a world-class singer and entertainer, working with an experienced estate planning attorney and other impartial professional advisors is necessary to prevent litigation and family fractures. Tony Bennett’s estate woes teach us that if our final wishes aren’t clear, there may be damage to our family that can’t be undone.
A solid estate plan can help alleviate that damage. Book a call with us today to get started putting together your estate plan. We can help you do a comprehensive inventory of your assets, determine what goes to whom, and who should help with the administrative role. In this way, you can avoid many of the struggles that plague Tony Bennett’s estate.
Reference: Kiplinger (Aug. 2, 2024) “What We Can learn from Tony Bennett’s Estate Dispute”
Tony Bennett Image Courtesy: John Mathew Smith & www.celebrity-photos.com from Laurel Maryland, USA – Tony Bennett 7, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=89533426
