Celebrity Estates: Discord in Tony Bennett’s Family

Celebrity Estates: Discord in Tony Bennett’s Family Episode 296 – The death of Tony Bennett in 2023 seems to have created a family rift that is now playing out in court. Could it have been prevented? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 296 Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, as some may have predicted, Tony Bennett’s death has caused family discord over his wealth. Tony Bennett, born Anthony Dominick Benedetto in New York City, was an American jazz and traditional pop singer. Among his most famous hits were “I Left My Heart in San Francisco,” “Rags to Riches” and “Stranger in Paradise.” Over his career he also collaborated with a number of high-profile artists, including Paul McCartney, Stevie Wonder, George Michael, Amy Winehouse, and Lady Gaga.[1] He died in 2023 at the age of 96. Bennett had carefully planned his estate by using a family trust, but it is perhaps not surprising that in spite of his best efforts, his children are squabbling over his estate. This seems to happen frequently when a celebrity dies with a large estate with significant intellectual property rights, and a blended family. Bennett had four children: Two older sons named Danny and Daegal, who are from his first marriage, and two daughters, Antonia and Johanna, who are from his second marriage. Then there’s Bennett’s third wife and widow, Susan.[2] One of the biggest issues seems to be how much the estate is really worth. The value has been estimated at $7 million, a surprisingly low figure which doesn’t sit well with the two daughters.  They estimate that Bennett made over $100 million over the last 15 years of his career.[3]  Whatever the true value of the estate, it seems likely that it will be diminished by the cost of current and potential future litigation. The terms of the family trust indicate that all tangible personal property is to be split evenly between the four children.[4] The oldest son, Danny, is trustee of his father’s trust. The two sisters are now suing Danny, looking for “equitable relief and a full accounting of all property and assets of the estate and trust.” Bennett’s widow was also named in the lawsuit.[5] Another issue involves whether Danny had provided his sisters with all the information required with respect to Tony’s assets. Specifically, he is being accused of failing to fully account for some of the intellectual property involved, including the proceeds of Tony’s image rights and sales of his music catalog. The sisters have also accused Danny of personally benefitting from sales of some of the estate’s memorabilia.[6] Most families, particularly those with smaller estates, appoint an individual, usually a family member, as trustee and executor. That individual is customarily compensated by an amount dictated by state law. But could all of these issues in Bennett’s estate have been resolved by using an independent trustee? In a complicated case like this one, an independent third-party could have been a better option to avoid a public and expensive intra-family conflict. But beware: There could be additional expenses when dealing with a third party, even beyond the statutory fees. It can also be very difficult to remove a third-party trustee, even if both sides agree that it’s for the best. Careful planning is usually the best option for a large, complicated estate like Tony Bennett’s.  But it doesn’t guarantee success, even with the best intentions and competent representation. [1] Barman, Deep Das. “Tony Bennett Leaves Behind $200 Million Fortune; Who Will Inherit It?” marketrealist.com. https://marketrealist.com/what-is-tony-bennetts-net-worth-and-who-will-inherit-it/ (accessed July 29,2024). [2] Stern, Anna Sulkin. “Tony Bennett’s Children Embroiled in Lawsuit Over His Estate. His two daughters accuse their brother of mishandling their late father’s assets.” wealthmanagement.com. https://www.wealthmanagement.com/estate-planning/tony-bennett-s-children-embroiled-lawsuit-over-his-estate (accessed July 29,2024). [3] Perry, Kevin E G. “Tony Bennett’s daughters sue their brother over late singer’s ‘$7m’ estate.” independent.co.uk. https://www.independent.co.uk/arts-entertainment/music/news/tony-bennett-children-estate-lawsuit-danny-b2562935.html (accessed July 30,2024). [4] Stern, Anna Sulkin. “Tony Bennett’s Children Embroiled in Lawsuit Over His Estate. His two daughters accuse their brother of mishandling their late father’s assets.” wealthmanagement.com. https://www.wealthmanagement.com/estate-planning/tony-bennett-s-children-embroiled-lawsuit-over-his-estate (accessed July 29,2024). [5] Stern, Anna Sulkin. “Tony Bennett’s Children Embroiled in Lawsuit Over His Estate. His two daughters accuse their brother of mishandling their late father’s assets.” wealthmanagement.com. https://www.wealthmanagement.com/estate-planning/tony-bennett-s-children-embroiled-lawsuit-over-his-estate (accessed July 29,2024). [6] Stern, Anna Sulkin. “Tony Bennett’s Children Embroiled in Lawsuit Over His Estate. His two daughters accuse their brother of mishandling their late father’s assets.” wealthmanagement.com. https://www.wealthmanagement.com/estate-planning/tony-bennett-s-children-embroiled-lawsuit-over-his-estate (accessed July 29,2024). 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