When someone passes away, the individuals chosen to carry out their wishes hold a position of great power—and responsibility. It’s common to name a trusted family member, but some people turn to outside professionals, like financial advisors or accountants, to act as “coach” co‑trustees, thinking it will provide neutrality or expertise.
However, as the estate battle over Jimmy Buffett’s $275 million fortune reveals, this decision can backfire—sometimes with devastating consequences for the people you intended to protect.
Here’s why naming a coaching-style trustee might not be the best idea:
1. Misaligned Interests & Poor Accountability
- In the Buffett case, widow Jane Buffett accused co‑trustee Richard Mozenter of breaching fiduciary duty by withholding information and charging excessive fees, over $1.7 million in 2024 despite earning less than 1% return on trust assets.
- Mozenter allegedly delayed information and stonewalled Jane for 16 months, despite her being the primary beneficiary.
- When independent trustees have direct financial ties, such as advisor fees or future business, they may prioritize self‑interest over beneficiary needs.
2. Lack of Alignment on Expectations
- Buffett reportedly didn’t hold pre‑death alignment meetings between Jane and Mozenter, leaving expectations unclear and then unfulfilled.
- Without clear communication and mutual understanding, co‑trustees and beneficiaries can clash, often resulting in litigation.
3. No Built-In Conflict-Resolution Mechanisms
- Experts recommend including provisions to remove or replace a co‑trustee, or even a tie-breaking third party, to avoid stalemates.
- The Buffett estate lacked such safeguards, and both parties filed lawsuits in different jurisdictions trying to oust each other, driving up legal costs and draining trust assets.
4. Opaque Fee Structures and Excessive Compensation
- Jane claims Mozenter charged unreasonable fees relative to the performance and services rendered, overcompensating himself while delivering subpar returns.
- Ambiguous fee structures can create distrust and blow up into contested accusations.
Lessons from the Buffett Estate
Lesson | Explanation |
Trust burn when transparency fails | If the trustee stonewalls or refuses to disclose information, the beneficiary quickly loses confidence. |
Conflict when personal claims outweigh fiduciary focus | Fee‑heavy advisors can create adversarial “us vs them” dynamics. |
Structure matters | Without mechanisms for oversight or replacement, stuck trustee disputes can drag on for years. |
Alignment before death is crucial | Beneficiaries should meet trustees before death to clarify roles and expectations. |
Why Coaching‑Style (Non-Family) Co‑Trustees Often Backfire
- They’re not emotionally invested in family relationships and may underestimate the surviving spouse’s needs.
- Coaching mindset may not translate into real fiduciary responsibility, leading to confusion over who calls the shots.
- Absence of guardrails (e.g. removal provisions, fee caps) opens the door to disputes if trust breaks down.
Alternatives & Best Practices
If a non‑family advisor is considered, here’s how to reduce risk:
- Pre‑death orientation: ensure trustee and beneficiary meet and agree expectations.
- Third-negotiator or tie-breaker: include a neutral decision mechanism to resolve deadlocks.
- Removable trustee clauses: let the primary beneficiary replace the advisor if needed.
- Clear fee provisions: limit total compensation and itemize expenses.
- Regular reporting: mandate transparent, periodic financial statements and distributions.
The Buffett estate dispute is a cautionary tale: even well‑intentioned advisors can become adversarial trustees unless structures for oversight, transparency, and replacement are firmly in place.
Using a non‑family “coach” or advisor as co‑trustee often introduces friction, secrecy, and legal risk, turning what should be a protective strategy into a courtroom battle.
If you’re considering a similar setup, it pays to include legal safeguards and detailed clauses in your estate plan to prevent this kind of fallout.
Lori Vella is an Estate Planning and Business Attorney. She works virtually throughout Florida and New York, but has her home office in Tampa, Florida. She is mom to a little boy which ignited the passion for helping other families. She and her son enjoy car rides, playgrounds and taking mini-adventures. They also have an organic garden that surprisingly yields vegetables. Lori considers herself well-versed in Seinfeld and welcomes any trivia!
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