Tony Bennett sang I Left My Heart in San Francisco – but he left his family’s trust assets in the hands of his oldest child, Danny Bennett. And that’s a melody his siblings are not happy to hear. His two half-sisters are suing him in New York for mishandling their father’s estate.
The Bennett family’s legal conflict is instructive for anyone who is thinking about appointing a trustee, considering serving as trustee, or who is a trustee and embarking on trust administration. A trustee has enormous responsibilities. Among the rules: one beneficiary cannot be favored over another; self-dealing is forbidden; and accountings must be provided regularly to beneficiaries. Mismanagement, intentional or not, can lead to personal liability, fractured family bonds, and lawsuits. This is what is unfolding now in the Bennett family.
Bennett’s Son Was Career Manager and Trustee
Diagnosed with Alzheimer’s Disease in 2016, Bennett died July 21, 2023 at age 96 in New York City. He left behind two sons, Danny and Dae, from his first marriage; and two daughters, Joanna and Antonia, from his second marriage. In 2007 he married for the third time, to Susan Crow, who became his primary caregiver as his Alzheimer’s Disease progressed.
In the 1970s, Bennett’s musical style had gone out of favor. He had no recording contracts, owed $2 million in back taxes, and the IRS was threatening to take his home. He had also developed a drug habit that nearly killed him. At his lowest point, he asked Danny to take over management of his career. Danny did so, encouraging his father to ignore more contemporary music and stick to his signature style. That turned out to be good advice. As the years wore on, new generations learned to love Bennett. In 2021, he performed alongside pop icon Lady Gaga to a packed house at Radio City Music Hall. His finances improved dramatically along with his resurgent popularity. A painter as well as a singer, he also sold his artwork, with one painting selling for $80,000.
Bennett always credited Danny for saving him, saying in 1999: “I realize how fortunate I am to have someone, in Danny, that is truly looking out for my best interests and not just in it for the money.”
The Lawsuit
Danny’s two half-sisters do not appear to agree with their father’s glowing evaluation. On June 12, Johanna and Antonia filed a lawsuit against Danny in the New York court, alleging he mishandled the trust assets.
According to the filing, the family trust requires all of the singer’s personal property to be distributed in equal shares to his four children. Johanna and Antonia allege Danny has not done that. They claim Danny “obtained personal benefits for himself and his company” from the sale and consignment of their father’s assets, and failed to account for the proceeds from the sale of the singer’s catalog and image rights to Iconoclast, a brand development firm. Danny has not responded to the sisters’ request that he report what assets were sold to the company.
There’s more. The sisters claim that their father earned more than $100,000,000 during the last 15 years of his life, but are now being told the gross value of the estate is in the $7 million range. They are requesting a full accounting to include an inventory of trust assets and how they have been distributed pursuant to their father’s trust, and documentation to include principal, interest, receipts, disbursements, expenditures and tax returns. The filing states: “Although Danny and his counsel have provided piecemeal information and produced some documents to Petitioners’ counsel, the information provided raises more questions than answers and fails to provide anything close to an accounting of Tony’s assets and financial affairs.”
Bennett had a close relationship with all his children. He likely would be appalled to see the family conflict currently unfolding.
Takeaway
It is essential that you select a trustee who understands the job and is up to the task when the time comes. If you are a successor trustee, you must be meticulous in handling trust assets, carrying out the terms of the trust, keeping all beneficiaries informed, and complying with all aspects of the law. It is always wise to hire a law firm that can guide you, ensuring you live up to your fiduciary obligations. The Karp Law Firm is experienced with trust administration and can provide you with the guidance you need to do the job properly and avoid the unfortunate circumstances now plaguing the Bennett family. Call us at 561-625-1100.
You can read more about the duties of a trustee here.
Read the Florida statute pertaining to a trustee’s duties here.
