Jimmy Buffett died on September 1, 2023, at age 76 after a diagnosis of Merkel cell carcinoma (skin cancer) four years earlier. He was a renowned singer-songwriter, film producer, businessman, novelist, and philanthropist. Buffett released his first album, Down to Earth, in 1970. By 2023, his net worth was $1 billion. This blog discusses the Jimmy Buffet estate.
Who Stands to Inherit Buffett’s Estate?
Buffett had an early, three-year marriage to Margie Washichek before divorcing in 1972 and marrying Jane Slagsvol in 1977. He and Jane had three children: Savannah, Sarah, and Cameron. The children have all pursued careers in the music, film, and entertainment industries.
According to the New York Times, most of Buffett’s money and property, including intellectual property and music rights, are held in a trust. His wife, Jane, is the personal representative distributing the estate according to his will, with help from his business partner and Margaritaville Holdings LLC CEO, John L. Cohlan. Because the trust provides the family with privacy, there are no specifics regarding which belongings will be passed to his wife, three children, two grandchildren, and two siblings. His estate is estimated to include:
- Music royalties of $20 million annually
- Houses and cars
- 150 Margaritaville restaurants, casinos, cruises, and related business holdings
- A yacht and several planes
- Stock market investments, including shares in Berkshire Hathaway
- Watches and memorabilia
Buffett was still receiving close to $200 million annually for his shares in Margaritaville Holdings LLC, and it seems that issues with his health and medical expenses did not affect his business or family legacy. He was still growing his wealth when he died.
Jimmy Buffet Estate Charitable Remainder Trusts
Given his charitable actions during his lifetime, Jimmy Buffett may have had a charitable remainder trust (CRT) to incorporate charitable giving into his estate. This type of trust could serve to secure his family’s future by providing a consistent income source to his beneficiaries while ultimately honoring his charitable nature by leaving the remainder to the charity of his choice.
Grantor Retained Annuity Trusts in the Jimmy Buffet Estate
A grantor retained annuity trust (GRAT) may have been another trust structure that Buffett considered to pass down his business interests while retaining certain financial benefits during his lifetime. A GRAT is an irrevocable trust that would have allowed him to transfer his business interests or other assets with the potential for significant appreciation in value to the trust while still retaining an income stream for himself via annuity payments for a specified term.
Family Trusts
After years of ongoing use and enjoyment of the property he owned, Buffett could have also taken steps to ensure the smooth transfer of assets such as his airplanes to future generations for their own use and enjoyment by establishing a family trust. With a family trust, he could designate how to distribute and maintain assets after his death.
In a well-designed estate plan, the things that someone owns, such as Buffett’s planes, money, and other significant property, would avoid probate, thereby maintaining the family’s privacy. Additionally, the beneficiaries would not have to wait to wrap up lengthy or costly court proceedings before inheriting the things Buffett intended them to receive.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
