Wills, Trusts & Estates Prof Blog

Estate planning lessons from the $600M fight over Michael Jackson’s music catalog

Michael Jackson's estate has faced ongoing legal challenges and tax disputes since his death in 2009, despite the continued financial success of his music. A significant event occurred in August 2024 when a California court approved the $600 million sale of Jackson’s music catalog, despite objections from his mother, Katherine Jackson, who argued that Michael never wanted his assets sold.

Jackson’s will, signed in 2002, left most of his estate to his children through a trust and granted his executors the authority to sell assets. Katherine Jackson's challenge was dismissed because the court determined that Michael’s will allowed such sales, emphasizing the importance of formally documenting wishes in a will.

The situation underscores the importance of clearly defined wills and the broad powers often granted to executors. It also provides lessons for estate planning, advising that wills should be carefully drafted with an understanding of executor powers. Imposing restrictions on asset sales can create challenges and may not align with future circumstances, as shown in a similar case involving Joseph Pulitzer. Ultimately, estate plans must be formalized in writing and carefully considered to avoid posthumous disputes and unintended consequences.

For more information see The Conversation's "Estate planning lessons from the $600M fight over Michael Jackson’s music catalog" Theconversation.com, August 28, 2024. 

Special thanks to Naomi Cahn (University of Virginia School of Law) for bringing this article to my attention.

A Song Man and a Law Professor Walk Into the SEC—And Try to Take Down Its NFT Agenda

Brian Frye, a law professor, and Jonathan Mann, a singer-songwriter, have filed a federal lawsuit against the U.S. Securities and Exchange Commission (SEC) to challenge the agency's stance on NFTs. The SEC has previously sued select NFT projects, labeling them as unregistered securities, without clearly defining what types of NFT projects are legal. Frye, who had set up a trap in 2019 by minting an NFT of a letter declaring his art project as an unregistered security, aims to force the SEC to clarify its position on NFTs through this lawsuit.

The lawsuit follows the SEC's recent action against actress Mila Kunis' NFT-based cartoon series "Stoner Cats," which settled with the agency for $1 million. This case, and others like it, sparked outrage among artists who rely on NFTs for income, including Mann, who decided to take legal action. Teaming up with Frye, Mann hopes to challenge the SEC's authority to regulate their NFT-backed artworks as securities, and in doing so, protect the rights of artists who create and sell NFTs.

Frye and Mann's lawsuit seeks to expose what they see as a fundamental inconsistency in the SEC's approach to NFTs, questioning why certain NFT projects are targeted while others are not. They argue that the SEC's lack of clarity and selective enforcement creates uncertainty in the NFT market. The outcome of this legal battle could have significant implications for the future regulation of NFTs, though Frye and Mann acknowledge that a definitive resolution may require further legislation or a Supreme Court ruling. Nonetheless, both feel a sense of catharsis in confronting the SEC and seeking answers.

For more information see, Sander Lutz "A Song Man and a Law Professor Walk Into the SEC—And Try to Take Down Its NFT Agenda" Decrypt, July 31, 2024.

Special thanks to James Lamm (Minnesota Estate Planning and Tax Attorney) for bringing this article to my attention.

Michael Jackson Died With $500 Million in Debt

Michael Jackson's debts and creditors' claims at his death in 2009 amounted to over $500 million, as revealed in a recent court filing by his estate. Major debts included $40 million owed to tour promoter AEG. The estate, managed by John Branca and John McClain, has since resolved most of the creditors' claims and litigation.

Jackson's lavish spending on his Neverland Ranch, art, jewelry, and private jets contributed to his financial troubles. Despite his earnings from music and investments like the Beatles' song catalog, Jackson left behind complex financial entanglements, including a current dispute with the IRS over $700 million in alleged unpaid taxes and penalties.

For more information see Reggie Ugwu "Michael Jackson Died With $500 Million in Debt" The New York Times, June 28. 2024.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Tony Bennett's daughters sue their siblings, alleging they're mishandling the singer's family trust

Tony Bennett's family is entangled in a legal battle over control of his estate following the singer's death in July 2023. His widow, Susan Benedetto, who was married to Bennett for over 15 years, is facing a lawsuit from Bennett's two sons, Danny and Dae Bennett. The sons allege that Susan exerted undue influence over their father, particularly after he was diagnosed with Alzheimer's disease in 2016, to gain control over his affairs. They claim she manipulated him into making changes to his will and other estate planning documents, thereby securing a significant portion of his assets for herself.

The lawsuit filed by Danny and Dae Bennett asserts that Susan's influence intensified as their father's health deteriorated. They argue that Susan isolated Tony from his family and friends, restricting their access to him, and undermining his mental competence to manage his own affairs. The sons are seeking to have the changes made to the estate plan revoked, arguing that Tony was not in a sound state of mind when these decisions were made. They are also requesting an accounting of the assets and income generated from Tony's music and business ventures.

Susan Benedetto, on the other hand, has denied these allegations, stating that she acted in accordance with Tony's wishes and always prioritized his well-being. She emphasized that Tony's love for music remained strong until the end, as evidenced by his final performances and recordings. The dispute has highlighted the complexities and emotional turmoil often associated with estate management, particularly when it involves a high-profile figure like Tony Bennett, whose legacy and significant assets are at stake​

For more information see Edward Segarra "Tony Bennett's daughters sue their siblings, alleging they're mishandling the singer's family trust," USA Today, June 13, 2024.

Special thanks to Deborah Matthews (Virginia Estate Planning Attorney) for bringing this article to my attention.

Preparing for Heaven’s Door: Why Selling Song Catalogs Is Savvy Estate Planning for Bob Dylan, Neil Young and More

Almost 60 years ago, Bob Dylan enraged the folk music world—specifically, the purists—when he took a step into the rock scene with an electric guitar strapped over his shoulder.

Those same purists may have some words about Bob Dylan's decision to sell his "precious" song catalog to a multinational conglomerate for nearly $400 million. 

One might argue that selling one's music catalog is analogous to selling one's soul. However, when taking a closer look at the structure and purpose of such deals, it actually makes sense. 

As we get older, we often consider what we will leave behind and to whom we will leave it behind. Although most of us do not have music catalogs to consider, we do consider valuable things like property, vehicles, stocks, bonds, and other miscellaneous items. 

In the case of a famous musician, they have music royalties and other things to consider, as was the case for Bob Dylan, Neil Young, and others. 

Over the past few years, with music streaming market booming, musicians have a lot to consider regarding the rights to their music as the value of such assets has grown significantly. We saw a huge spike in the selling and purchasing of music catalogs during the pandemic when artists were not allowed to tour. 

Due to the evolving market, it makes sense why Bob Dylan decided to sell his catalog, master recordings, and his personal archive for nearly $650 million.

See Jem Aswad, Preparing for Heaven’s Door: Why Selling Song Catalogs Is Savvy Estate Planning for Bob Dylan, Neil Young and More, Variety, April 21, 2022. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Britney Spears leaving LA home post-conservatorship, in ‘process of buying’ new digs: ‘Time for change!‘

Britney Spears has decided to move from her Thousand Oaks mansion, just three months after the princess of pop was "freed from the confines of a 13-year conservatorship. . ." 

Brittney Spears recently took to Instagram with a beautiful picture of the view from her room. Spears captioned the picture, "[s]o this is the view from my room. . .It's pretty spectacular." And also stating, "I've lived in this house for seven years and I'm in the process of buying a new home. . . It's time for change." 

Spears also teased her followers by stating that she would "maybe" give us a tour of her beautiful home, that she has apparently been pretty modest about in the past. 

Britney Spears purchased the five-bedroom, eight-bathroom home for $7.4 million in 2015. The home sits on 20 acres and includes a separate pool house with a full kitchen, a tennis court, infinity pool, a spa and an orchard, and even a golf course. 

See Julius Young, Britney Spears leaving LA home post-conservatorship, in ‘process of buying’ new digs: ‘Time for change!‘, Fox Business, February 24, 2022. 

 

Hank Williams Jr.'s son claims he's trapped in a conservatorship and 'wants out'

Hank Williams Jr.'s youngest son, Sam Williams, has claimed that he is trapped in a conservatorship that he wants out of. Sam Williams posted a video this week, in which he alleged that his dad and half-sister placed him in the conservatorship. 

In a silent video posted on YouTube, Sam could be seen holding a white piece of paper with the words "I WANT OUT." However, the video is no longer viewable, as it has been made private. 

Williams claimed that his father Hank Williams Jr. and half-sister Holly Williams placed him in a conservatorship in August 2020, "55 days after his sister Katie Williams Dunning died in a car accident. 

On February 2, Sam shared the video to his twitter account writing "Please watch..conservatorship." Sam went on to write: 

I've been quiet a long time now. I want out of this, and I don't mind people knowing. They took my grief process, my spirit, my money, my car, my home, and everything possible in order to 'protect me.' Well, I need protection from them. . .I have worked my broken heart to quits since my dear Katie left for Home. I do not deserve this. This is a scary step but I don't see what else to do here. I am ashamed for my family and embarrassed. I am beyond done. I have my spirit back. Get. Me. Out. Please. 

See Melissa Roberto, Hank Williams Jr.'s son claims he's trapped in a conservatorship and 'wants out', Fox News, February 6, 2022. 

Prince estate value set at $156.4M years after his death

After a six-year long legal fight over the value of Prince's estate, the parties have agreed on its final value at $156.4 million. Originally, the administrator of Prince's estate, Comerica Bank & Trust appraised it for $82.3 million, while the IRS put the value at $163.2 million. 

Prince died at the age of 57 of a fentanyl overdose in April 2016. The artist died intestate, without a will. Prince's heirs consisted of six siblings, two of which have died since Prince's passing, and two others are in their 80s. 

Prince's estate will be administered evenly between Primary Wave, a New York music company, and the three oldest of the music icon's six heirs or their families. If the parties agree, estate administration could begin as early as February. 

See Ken Martin, Prince estate value set at $156.4M years after his death, Fox Business, January 15, 2021.

 

Bunny Wailer’s 13 Children Asked To Do DNA Paternity Test ‘To Benefit From Father’s Will’

The sister of late Bunny Wailer, Donna Livingston-Carridice, is asking the Regga legend's 14 children to get themselves DNA tested to establish paternity and "access the benefits set out in their father's will." 

According to Livingston-Carridice, Wailer's children have been "harassing the family of the eldest co-executor of Wailer's estate, Carlton Livingston." 

Livingston-Carridice stated, 

“The kids have launched a full-fledged attack on Carl’s wife and we, the elder members of the Livingston family, cannot allow this to continue. That is why we’re making an appeal to all of Jah B’s kids to do a DNA test so that they can establish paternity and gain the benefits of their father’s estate. There is no need to harass Carl or his wife. . ." 

According to a copy of the Will acquired by DancehallMag, each of the 13 children are listed by name as beneficiaries and also includes a provision for any other child to come forward to establish "paternal descent by DNA evidence." 

Livingston-Carridice has alleged that Wailer's estate will provide for the children, but that Bunny wanted the DNA to be done first. Livingston-Carridice has directed all children who wish to take the DNA test to DNA Carigen Lab in New Kingston. The test will cost $43,000. 

See Claude Mills, Bunny Wailer’s 13 Children Asked To Do DNA Paternity Test ‘To Benefit From Father’s Will’, DancehallMag, December 2, 2021. 

Special thanks to Laura Galvan (Attorney, San Antonio, Texas) for bringing this article to my attention.  

Cher Sues Sonny Bono's Widow, Mary, for Withholding Royalties

Cher has filed suit against Sonny Bono's widow, Mary Bono, alleging that Sonny's widow has "been withholding royalties from Sonny and Cher's 1960s hits. . .such as 'I Got You Babe' and 'The Beat Goes On." 

According to the legal documents filed in Federal Court, Cher claims that she and Sonny agreed to an equal split of their music royalties when they divorced in 1975. Cher claims that she and Sonny executed a deal when the couple settled the divorce in 1978. 

Cher alleges that Mary has been trying to "undo her ownership of those rights and royalties in recent years." 

Cher and Sonny married in 1964 and were very successful as a couple in the early '70s before they divorced. Cher went on to have a successful solo career, while Sonny became a California politician. Sonny was married to Mary when he died in a skiing accident in 1998. 

According to reports, Cher and Mary got along well after Sonny's death, but their friendship has clearly ended as Cher is now suing for at least $1 million in damages and is asking a judge to declare the 1978 divorce settlement enforceable. 

See Cher Sues Sonny Bono's Widow, Mary, for Withholding Royalties, TMZ, October 14, 2021. 

Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.