What Can We Learn from Richard Simmons? Lessons from a Celebrity Estate Dispute

The beloved fitness star (ahead of his time, if you ask me), Richard Simmons, passed away in July 2024 with an estimated $30M estate. Simmons established a trust where he named his house manager and friend of 35 years, Teresa Revels, as one of his co-trustees (and one of his beneficiaries) along with his brother. It turns out that very shortly after Simmons’ passing, Revels declined her co-trustee position, giving Leonard sole control of the estate. Revels is now suing the estate in an attempt to get reinstated as the co-trustee. Revels argues that:

1. She was coerced into signing the document
2. She signed the document while in a vulnerable emotional state
3. She did not understand the consequences
4. She had no legal representation at that time
5. English was not her first language

So, what can we learn from this fitness guru’s estate power play?

Understanding Trusteeship and Estate Power Plays

Ways a Trustee Can Refuse to Act

There are several ways a named trustee can stop acting as a trustee:

• Non-Acceptance: If the named trustee has not accepted the role of trustee, they can sign a declination of trusteeship. This is a document where one can refuse to take on the role of trustee.
• Resignation: If the trustee has already taken on the role of trustee by signing the trustee acceptance or acting in furtherance of the trust, the named trustee can resign their trusteeship without court order.
• Non-Action: A named trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have declined the trusteeship, per the statute F.S. 736.0701 (2).

Formalities of Declination and Resignation

The trustee declination or resignation are both in writing and served on the qualified beneficiaries, the co-trustees, and the grantor (if still alive). The trustee resignation needs to provide 30-days notice. A typical declination and resignation may have “irrevocable” language included that may prevent the named trustee from changing their minds and wanting to act as trustee later, but it’s not typical. A trustee may petition the Court to be removed, but it’s not necessary to involve the Court when one is quitting the role of trustee.

Conclusion

So, there you have it. We will have to wait and see if Revels’ arguments regarding her declination are sufficient to get her re-instated, and we learned that there are ways of getting out of the trustee role once in, that don’t involve the judge.