Multi-million dollar dynasties implode not from bad stock picks, but from sloppy estate planning. When late Los Angeles Lakers owner Jerry Buss split his controlling empire equally among his six children via the Buss Family Trust, he wanted harmony. He thought equal shares meant equal happiness. He was dead wrong. Today, a bitter legal war is raging over the team's remaining 17.8 percent stake, exposing the exact estate planning flaws that rich families routinely ignore until it is too late.
If you own a business, real estate, or significant wealth, look closely at what is happening in Los Angeles. Five siblings recently voted to cash out their trust shares to a group led by Bob Iger and Josh Kushner in a massive $12.5 billion valuation deal. Jeanie Buss, the team governor and a co-trustee, is fighting the sale tooth and nail. She claims a 2017 court order and specific trust mandates give her veto power to protect her lifetime control. Her siblings argue that tag-along rights and majority rules let them exit gracefully.
It is a messy bloodbath. And it offers hard lessons for anyone building an estate plan.
Equal Is Not Always Equitable
Parents love treating their kids the exact same way on paper. Splitting assets into clean percentages feels fair. In practice, dividing operating control of a high-stakes enterprise among multiple siblings who hate sharing sandbox toys is professional negligence.
Jerry Buss gave operational roles to some children and ownership shares to all. That split between voting authority and financial benefit created competing incentives immediately. When siblings have identical ownership weights but completely different visions for the asset, deadlock is inevitable.
You must separate financial beneficiaries from operational decision-makers. Give non-active heirs passive income streams or trusts with payout rights, but keep voting control in the hands of a single, qualified fiduciary or a structured governance board with tie-breaking mechanisms. Do not let sibling democracy run a commercial empire.
The Danger of Poison Pill Clauses
Jeanie's current legal crisis stems partly from earlier maneuvers. When the family sold a majority stake to Mark Walter, it triggered structural changes and tag-along rights that her brothers and sisters are using right now. Estate planners often fail to game out second- and third-order consequences.
A well-drafted trust needs clear guardrails for liquidity events. If you authorize a partial sale, what happens to the remaining equity? Who holds the veto? Relying on old court settlements or vague trust wording about maintaining control is a gamble. Courts interpret ambiguous clauses based on changing circumstances, and literal text can conflict with structural clauses.
Trust Co-Trustee Deadlocks Will Paralyze You
Putting multiple family members as co-trustees is an invitation for litigation. When you have three co-trustees—like the Buss family arrangement where siblings sit on both sides of the fence—every major decision becomes a hostage situation.
You need independent, professional corporate trustees or clear tie-breaking protocols when family members split down the middle. If a trust requires unanimous agreement or majority rule among warring relatives, expect the local probate court to become your de facto board of directors. Litigation drains millions in legal fees and destroys family relationships permanently.
Take a hard look at your own documents today. If your succession plan relies on your kids simply getting along after you are gone, tear it up and start over. Build structures that function even when family members despise each other.
Lakers change everything and shock the NBA — five family members vote, Jeanie Buss says NO
This video provides an in-depth look at the shocking family vote and the complex dynamics driving the current legal battle over Los Angeles Lakers ownership.
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