The distinct voice and charm of Tony Bennett will be remembered by several generations since his career 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” will not equate in years to Bennett’s timeless musical legacy.
In 1994, Tony Bennett created a trust for his assets, naming himself and his son, Danny, as co-trustees. The trust was partially funded and Tony’s wife and children were listed as beneficiaries. When Tony Bennett died in 2023, Danny became the sole trustee.
In June 2024, two of Tony’s children filed a lawsuit alleging that their brother, Danny, failed to account for all of the trust assets as well as significant sales pertaining to such assets. The allegations further stated that Danny received personal benefit from these transactions.
Serving as Tony Bennett’s personal and LLC manager, Danny served as more than a trustee for his father’s trust. Benedetto Arts, LLC was formed by Tony to hold certain assets and he appointed Danny as the manager of this LLC. Each of his children as well as the family trust held LLC ownership interests.
The lawsuit alleges that subsequent to Tony Bennett’s Alzheimer’s diagnosis in 1996, Danny sold items of his father’s memorabilia as well as his name and likeness. These transactions resulted in large commissions for RPM Productions, a separate company owned solely by Danny. The lawsuit further alleges that Danny received loans of $1.2 million from his father. According to Tony Bennett’s wishes in his will, any tangible property that was not transferred to the trust was to be distributed to his children equally. This included all property, pictures and assets bearing his likeness.
As in the Bennett case, where there is a complex estate or one with significant assets, family communications and transparency may be of utmost importance to avoid costly litigation and delays with the distribution of assets. The estate of Tony Bennett would have benefited from having a professional or a non-family member appointed as the trustee. Tony’s decision to have one child serve as personal manager, trustee, and LLC manager while also maintaining status as a beneficiary made it impossible to avoid the appearance of a conflict of interest.
As Tony Bennett’s competency decreased, the potential for conflicts of interest increased. Even if he was deemed competent for certain transactions, his children allege that he may have been susceptible to coercion or undue influence.
Even if you’re not a famous singer and entertainer, working with an experienced estate planning attorney is necessary to prevent costly litigation and irreparable family fractures. Call our office or click here to Request a Consultation.
Reference: Kiplinger (Aug. 2, 2024) “What We Can learn from Tony Bennett’s Estate Dispute”