26 Nov Richard Simmons’ Trust – Weighty Battle For Control Betweeen His Brother And Housekeeper
The late weight savant Richard Simmons once said, “I don’t talk about my personal life, and I don’t talk about death.” However, the recent lawsuit by Richard Simmons’s housekeeper/manager, Teresa Reveles, to be reinstated as co-trustee (after she had signed a document to decline such a role) of his trust estate is the juxtaposition of Simmons’ quote. One central issue of the suit is who is in control over the famed fitness guru’s name, image, and likeness. In other words, who is in control over the story of his life in addition to his death? It is all about the money.
Reveles claims she was in a “weakened emotional state after just viewing Richard’s dead body” when she was pressured by Richard’s brother, Leonard, into signing a document that removed her as a co-trustee with him. She claims no one read her the document (the declination to serve as trustee) that she signed or explained the meaning of it (English is her second language) and that she wouldn’t have input about the trust assets and how Richard would be known in the future (in other words, his name, image, and likeness). Reveles claims that Leonard told her that being a trustee would be difficult and that if there were mistakes, then she could lose some of what she would be entitled to as a beneficiary. Reveles was Richard’s housekeeper and friend for 36 years and was named as a significant beneficiary of the trust in addition to being a co-trustee of the trust.
Since Richard’s death, Reveles has stayed in Richard’s home and required the trust estate to pay for her living expenses (even though she has her own home) and allegedly contacted Netflix to do a documentary about Richard from her perspective (which Leonard thinks would be harmful to Richard’s legacy – the manner of using his name, image, and likeness). The value of a celebrity’s name, image, and likeness after death could be substantial (i.e., Marilyn Monroe).
So, does the fact that she may have been in a grieving state mean that she lacked capacity when she signed the declination to serve as trustee? Probably not. Does it mean she was more susceptible to fraud or being misled? Probably yes.
Is there a duty for someone else to read the document to her? Probably not. The fact that she failed to read the document or obtain her own counsel is only her fault. It was not Leonard’s duty to tell her to get her own attorney.
Was Leonard wrong to state that being a trustee could be difficult, and the decisions made could affect the amount the beneficiaries receive?
Although he may have exaggerated the role, a trustee’s decisions could have an impact on the amount received by beneficiaries and often a trustee has liability if the trustee makes decisions that beneficiaries do not think is in the best interest of the trust estate.
Finally, if Reveles did contract Netflix on her view of Richard during his life, then (although it may be accurate) that impacts Richard’s name, image, and likeness, which is the responsibility of the trustee of the trust – which is probably why she wants to be reinstated as a trustee.
The court will determine if Reveles was induced by fraud to decline to serve as trustee, but it begs the question – should someone who doesn’t understand what they are signing and fails to know to obtain a lawyer, if in doubt, be a trustee of a $20 million estate that is likely to be greater with the value of name, image, and likeness? It is unknown as to what the trust agreement says or the compensation of the trustee (trusts are private), but Reveles probably wants to be the co-trustee so she could get compensation in addition to control over Richard’s name, image, and likeness. Of course, any other beneficiary of the trust will now get less as a result of litigation. Richard once had a “Cruise to Lose”. In this case, the beneficiaries are the losers.
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