What happens when an inheritance becomes the source of a family feud?
The latest Los Angeles Lakers drama is about more than basketball. After nearly five decades of Buss family ownership, the family’s remaining 17.8% stake has become the center of a legal dispute.
Jerry Buss structured his estate so that his six children would share in ownership of the Lakers and continue the family involvement in the franchise. His controlling ownership was placed in a trust for the benefit of his children. Now, with the majority of the family’s stake already sold, five Buss siblings want to sell the remaining interest. Team governor Jeanie Buss has challenged the proposed sale, and the dispute has moved to court. The legal effect of the trust and prior court orders is now being contested in court.
The recent Buss family drama over control of the Lakers is a reminder that succession planning isn’t just for sports franchises or billionaires. You might not have billions in assets to pass down, but you might have a family business to continue. Passing assets to your family is only part of the plan. Your estate plan should also answer questions like:
- Who will manage the assets?
- Who will have decision-making authority?
- What happens if family members disagree?
Even close-knit families can disagree when significant money or property is involved, especially when it is about who will take responsibility for the family business or the cabin up north.
Hoping that everyone will “work it out” is not the best strategy. A thoughtful estate plan can establish clear roles, rules, and dispute-resolution procedures before a disagreement becomes a family feud.
The takeaway? You could draft a highly detailed estate plan, but if you don’t prepare for family disagreements, your estate administration may not go according to plan. Discuss your wishes regarding authority and expectations with your family during your lifetime. These important and sometimes difficult conversations could save your loved ones trouble in the future.