I am very grateful for my life and do not envy many. That said, Jimmy Buffett lived his life like a song and, that's captured my imagination for decades. And I know I'm not the only one.
The WSJ recently published the article Lost in Margaritaville: The Messy Drama Over Jimmy Buffett’s $275 Million Trust which explores the issues his estate continues to have. I'm not a fan of calling out specific families, as no one really knows the intricacies and subtleties of the circumstances. Who am I to judge?
But, we all need to learn lessons from others and trust that the stove is hot without needing to touch it ourselves. (Un)fortunately, people who live in the camera eye trade much of their privacy, (too) much is known, and celebrities tend to capture the attention. So, I am using this example to highlight a broader point.
Preamble aside, how did we get here? How can we set aside the dollar amounts and learn the real lessons of how to protect our family, legacies, and wealth? The opening of the article depicts how Jimmy Buffett’s second wife, Jane, is estranged from her step children and own daughter over the proceeds of the estate. Ugh. One of my undying hopes is that we all stop suing each other over money we didn’t earn. This reality just makes me sad.
In my experience, when the plan is opaque and unclear, people will fill in the details themselves. These invented stories and futures can create expectations and disappointments within the family and ruin relationships. However, regular family communications, akin to a Board Meeting in the corporate world, will help ensure the plan is robust and known. Increased transparency and accountability, akin to Quarterly Reporting in the corporate world, will help ensure the plan is equitable and reasonable.
Case in point: For the Jimmy Buffett empire, the “conflict includes accusations from both sides about mismanaging trust funds and assets. Jane Buffett and Mozenter are each seeking to remove each other as co-trustees in the trust, which includes a stake in the Margaritaville business empire. Meanwhile, executives, longtime family assistants and Jimmy’s family members have been pulled into the litigation. The messy affair is headed for a January trial.”
There are many other details. And frankly, the more I learn, the more depressed I get looking at how the fortune built on good vibes has been dragged down by anything but good communication, good planning, and good processes. Is it about the money? Of course. But the money is simply the outcome, not the goal. The goal is family legacy, family wealth, and family help. The real family fortune is ensuring that we are all helping the family thrive. Let’s choose to move our families forward…