By Kent Berk on June 18th, 2025 in Fiduciary Misconduct, TRUST DISPUTES, Trustee Misconduct, Trusts
Jimmy Buffet Trust – Background
The estate of the late singer Jimmy Buffett (died 2023) has erupted into a high-profile trust dispute. Buffett’s widow, Jane Buffett, is clashing with co-trustee Richard Mozenter (his longtime financial adviser) over control of a trust reportedly worth $275 million. Each party claims the other is mishandling the trust and has petitioned courts (in different states) to remove the other as co-trustee. Jane Buffett’s lawsuit alleges serious trustee misconduct: she claims Mozenter has been “openly hostile” toward her, refused to share financial information, charged exorbitant fees (about $1.7 million per year), and mismanaged trust assets so badly that annual income is projected at “only” ~$2 million (far less than expected). Mozenter, in turn, portrays Jane as uncooperative and self-interested, but the crux of the battle illustrates core issues of trustee duties and grounds for removal.
Grounds for Trustee Removal Under Arizona Law
This Buffett dispute raises the question: When can a trustee be removed for wrongdoing or conflict? Every state’s trust laws provide mechanisms to remove a problem trustee.
In Arizona, the relevant rules are in the Arizona Trust Code (A.R.S. Title 14). Arizona Revised Statutes. In particular, ARS § 14-10706 lays out specific grounds on which a court may remove a trustee. Below are key statutory grounds – and how they relate to the Buffett case allegations:
- Material Breach of Trust: Arizona law permits removal if a trustee has “committed a material breach of trust.” In essence, a serious violation of fiduciary duty – such as misappropriating assets, imprudent investments, or other mismanagement that harms the trust – qualifies as a material breach. In Buffett’s case, Jane alleges Mozenter mismanaged trust assets and charged unreasonable fees. If true, such mismanagement and self-serving fees would constitute a material breach of trust, satisfying this ground for removal in Arizona.
- Lack of Cooperation Among Co-Trustees: Arizona also recognizes that when co-trustees cannot work together, it can undermine the trust. The statute allows removal if “lack of cooperation among cotrustees substantially impairs the administration of the trust”. The Buffett estate saga is a textbook example: Jane describes Mozenter as hostile and unwilling to share information, while he accuses her of interference. Such dysfunction means the court could find that the co-trustees are effectively at war rather than collaborating, which greatly impairs trust administration. Under Arizona law, a court could find this non-cooperation ample reason to remove one or both trustees so the trust can be administered smoothly.
- Unfitness, Unwillingness, or Persistent Failure to Administer: Arizona law further provides that a trustee may be ousted if, “because of unfitness, unwillingness or persistent failure…to administer the trust for the benefit of the beneficiaries,” the court finds that removal best serves the beneficiaries’ interests. In practice, this covers a trustee who is unable or unwilling to effectively do the job. Persistent failure might include neglecting duties, mismanaging assets over time, or prioritizing personal interests over beneficiaries. Jane Buffett’s alleges – for example, that Mozenter delivered subpar financial results (only $2 million income from a vast asset pool) and put his fees above the trust’s performance – suggest a failure to administer the trust in the beneficiaries’ best interest. If a trustee consistently underperforms or displays incompetence, an Arizona court could deem them “unfit” or “persistently failing” and remove them to protect the beneficiaries.
Arizona’s statute encompasses other removal grounds as well. For instance, a court may remove a trustee if all the beneficiaries unanimously request it or if there’s a substantial change in circumstances, as long as removal serves the beneficiaries and isn’t contrary to the trust’s purpose. These “no-fault” grounds ensure that even without misconduct, a trustee can be replaced when it’s in everyone’s best interests (though unanimous beneficiary consent can be hard to obtain). In the Buffett dispute, however, the focus is on alleged misconduct and conflict – the very scenarios Arizona’s material breach, co-trustee conflict, and persistent failure provisions are designed to address.
Conclusion: Safeguarding Trusts and Next Steps
Jimmy Buffett’s estate battle highlights the importance of choosing the right trustees and the legal remedies available when a trustee falters. Even well-crafted estate plans can run into trouble if a trustee neglects their duties or clashes with co-fiduciaries. Arizona law provides a safety valve by empowering beneficiaries (or co-trustees) to seek removal of a trustee who breaches trust, refuses to cooperate, or cannot effectively administer the trust. These statutes aim to protect beneficiaries and uphold the trust’s purpose when a trustee is doing more harm than good.
Contact Berk Law Group for Trustee Removal Actions
Berk Law Group is here to help! If you or your clients are dealing with a troubled trust – whether it’s mismanagement of assets, infighting between co-trustees, or a trustee’s persistent failure to carry out their duties – don’t wait for the situation to worsen. Contact Berk Law Group. We are a Scottsdale-based law firm concentrating in trust and estate litigation in Arizona. Our experienced attorneys can evaluate your case under Arizona’s Title 14 standards and aggressively pursue or defend trustee removal actions. We are here to help ensure your loved one’s trust is administered correctly and that your interests are protected under Arizona law.
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