Lessons from Tony Bennett’s Estate Dispute

Tony Bennett, renowned for his unique, smooth, velvet voice, will be forever remembered in the world of music. He began his illustrious career in the 1950s, distinguishing himself among legends like Bill Haley & His Comets, Elvis Presley, and Bobby Darin. Unlike his contemporaries, Bennett chose a path focused on elegant vocals, and he was frequently grouped with icons like Frank Sinatra, Bing Crosby, and Nat King Cole. In a notable compliment, Sinatra once declared Bennett to be the best singer in the world.

In 2016, Bennett was diagnosed with Alzheimer’s disease, and he passed away in July 2023 at the age of 96. His career kickstarted in 1951 with the hit song “Because of You,” and he continuously reinvented himself throughout the decades.

A significant resurgence in his career came in 2002, when he won over a new generation of fans through collaborations with contemporary artists, most notably Lady Gaga. Lady Gaga, whose real name is Stefani Germanotta, credits Bennett with helping her regain her voice during her recovery from hip surgery and chronic pain from fibromyalgia. Together, they produced two albums, featuring duets of Bennett’s classic hits like “I’ve Got You Under My Skin” and “The Lady Is a Tramp.”

Bennett is believed to have amassed over $100 million during his career, yet at the time of his death, his estate was reported to be valued at only $7 million. He is survived by his wife, Susan Crow, and his children D’Andrea “Danny” Bennett, Daegal “Dae” Bennett, Johanna Bennett, and Antonia Bennett.

In 1994, Tony Bennett established a family trust, appointing himself and his son Danny as co-trustees. The trust, which included various assets, listed Susan, Antonia, Danny, Dae, and Johanna as beneficiaries. Upon Tony’s death in 2023, Danny became the sole trustee.

However, in June 2024, Johanna and Antonia filed a lawsuit against Danny. They claimed that he had failed to account for and disclose all trust assets and transactions, and alleged that he benefitted personally from these dealings. These accusations raise concerns about conflicts of interest and potential undue influence exerted by Danny.

Aside from being a co-trustee, Danny was also Tony Bennett’s manager and was involved in Benedetto Arts, LLC, a company formed by Bennett to hold certain property and assets. Danny managed the LLC, and both the family trust and Bennett’s children had membership interests in it.

According to Bennett’s will, any tangible personal property not transferred to the trust was to be equally distributed among his children. For celebrities like Tony Bennett, such items often hold significant value due to their “star power.” This situation brings to mind the disputes over Robin Williams’ estate, which also involved valuable personal property.

Before Tony’s death, in July 2022, Danny allegedly sold some of his father’s memorabilia and his name and likeness. Reports suggest that Danny received a substantial commission on this sale through his company, RPM Productions. Additionally, Danny is said to have auctioned off items of Tony’s personal property without proper notification to Johanna and Antonia, who may have had sentimental attachments to these items.

Moreover, Danny allegedly took loans totaling $1.2 million in 2020, four years after Tony’s Alzheimer’s diagnosis. While all of Tony’s children received gifts, Danny also earned a 25% commission for certain work done with his father.

Litigating trust or estate issues usually leads to losses for everyone involved. Legal and professional fees can consume a significant portion of the estate, and, more importantly, family relationships can become irreparably fractured.

There are important lessons to learn from Tony Bennett’s estate planning and administration to help prevent such disputes within our own families.

Transparency and open communication are crucial. Lack of communication is often the primary trigger for estate and trust litigation. Once litigation starts, it can escalate and significantly diminish the value of the assets meant for beneficiaries. In such cases, each beneficiary and the trustee usually need separate legal representation, leading to substantial costs.

Consider a professional or corporate trustee. Given the substantial value of Tony Bennett’s estate, possibly exceeding $7 million and up to $100 million, a corporate or professional trustee could have been a better choice. Danny had conflicts of interest as a trustee, LLC manager, and Tony’s manager, concerns exacerbated by Tony’s loss of competency due to Alzheimer’s. A professional trustee would have provided substantial protection for the beneficiaries and for Danny.

Professional trustees generally have extensive training and resources, offering the best possible guidance to achieve the family’s goals and objectives.