(Courtesy of Haas & Zaltz) Grammy Award-winner Tony Bennett died on July 21, 2023, at the age of 96. Bennett had a prolific career, releasing more than 70 albums and winning over 19 Grammys. He enjoyed a resurgence in popularity late in his career when he partnered with Lady Gaga to release two albums. He devoted his life to music, amassing an impressive music catalog, image rights and memorabilia, along with paintings and artwork. Rolling Stone reported that Bennett earned more than $100 million from live performances in the last 15 years of his life and sources estimate the value of his estate over $200 million.

From the facts that are available, it appears that Tony Bennett left more than enough money and assets to take care of all of his loved ones: his wife, Susan Crow, and his four children, D’Andrea Bennett (“Danny”), Daegal Bennett (“Dae”), Johanna Bennett, and Antonia Bennett. Yet, that hasn’t stopped litigation from ensuing. Two of Bennett’s four children, Johanna and Antonia, filed a lawsuit against their brother, Danny, in New York Supreme Court earlier this summer. In that lawsuit, Johanna and Antonia alleged that Danny failed to provide a full accounting for sales of Bennett’s music catalog and image rights proceeds, that he withheld information about their father’s assets and that he personally benefited from the estate and received a substantial commission from financial activities prior to Bennett’s death.

To the untrained observer, Tony Bennett did everything right. He created an estate plan, which included the Bennett Family Trust. A comprehensive estate plan consists of a revocable trust, pour-over will, property power of attorney, healthcare power of attorney, living will, and a Health Insurance Portability and Accountability Act (HIPAA) authorization.

During life, the plan acts as a set of instructions regarding who makes what decision, be it medical or financial, if the client is unable to make those decisions. At death, these documents dictate who controls distribution of the estate, to whom the estate will be distributed and when and how it will be distributed to those individuals. While one cannot know which documents Bennett signed, it is known that the Bennett Family Trust would have kept his plan private as trusts are used to prevent the public probate process. Now that his daughters have filed a lawsuit, that changes.

Unfortunately for Tony Bennett, he didn’t do everything right. According to sources, he named Danny to serve as co-trustee of the Bennett Family Trust along with him during the later years of his life. At Tony’s death, Danny became the sole trustee. Additionally, it seems that Danny managed property and assets for the Bennett Family Trust and the family’s Delaware-based company, Benedetto Arts, LLC (“LLC”), in which Bennett’s children and the LLC all hold membership interests.

According to the lawsuit, Danny oversaw the sale and consignment of Bennett’s memorabilia, personal property and an interest in Bennett’s name and likeness in July 2022. Danny founded an artist management and strategic marketing company, and the lawsuit alleges that in this capacity he received a “substantial commission” from the sale. Bennett’s will contained a provision distributing all of his tangible personal property equally among his children after debts, expenses and taxes. The daughters alleged that they were not aware which of Bennett’s assets were sold in the deal. They further alleged Danny prevented them from visiting their father’s apartment and that they were not allowed to view Bennett’s tangible personal property. The lawsuit alleged that these items had “significant sentimental value.” Finally, the lawsuit alleged Danny donated Bennett’s clothing to charity without notice to his sisters in contravention of the express terms of Bennett’s will. Further, Danny auctioned off Bennett’s remaining tangible personal property without consulting his sisters even though none of Bennett’s estate planning documents directed a sale.

Danny’s actions or inaction caused his sisters to file their lawsuit, undoubtedly damaging their relationship permanently. The sisters’ lawsuit contained allegations regarding allegedly improper $1.2 million loan and gifts totaling $4.2 million, which is “more than double the value of gifts to each of Bennett’s other three children.” It’s possible that the loan and gifts were legitimate. It’s possible that they weren’t. One may never know. What is known is that this family drama will play out in a public forum despite Bennett’s desire to keep his plan private.

This case highlights the importance of communicating one’s wishes to their beneficiaries. While many clients prefer to keep their plan private, letting the beneficiaries know the general scheme of the plan and any reasons for inequalities while they are alive will help prevent hurt feelings after their death. The case also serves as a reminder of the important role that a trustee plays after death. Whoever is named to serve as trustee has a fiduciary duty to act for the benefit of the beneficiaries, which includes providing them with information about the trust, maintaining transparency in the actions that they take on behalf of the trust, and communicating regularly about the trust.

Individuals serving as the trustee usually desire to abide by the decedent’s wishes but often fail to realize the immense responsibility that comes along with the office. Finally, this case demonstrates the discord that arises when one child serves as trustee. Naming any sibling to serve as trustee for another sibling causes strife. If the children have different mothers that will only exacerbate that friction. Clients often want to name the eldest or most responsible child as the trustee or co-trustee to take over after their death, but that causes issues and may result in irreparable damage.

If anything in this article sounds like something in your estate plan or if you have questions about your plan, reach out to one of our qualified trusts and estate practitioners today. It could prevent litigation after your death. To learn how to protect you and your family, visit www.haaszaltz.com, call (845) 425-3900 or email [email protected].