David Lynch Left a $15.5 Million Trust. His Family Reached a Deal a Judge Still Must Approve

Caption: David Lynch in 2016. Credit: Msubrizi, via Wikimedia Commons, CC BY-SA 4.0.

David Lynch left a family trust valued at about $15.5 million. His family has now reached a mediated agreement over how money in that trust should be divided, but the deal is not final until a Los Angeles judge approves it at a Nov. 12 hearing, according to court papers reported by MyNewsLA.

The Deal Sets Out Millions in Distributions

The settlement calls for $2.5 million to be distributed to each of Lynch’s three adult children within two days of court approval. A separate preliminary distribution for his minor child would be placed into a subtrust for safekeeping while she remains a minor.

The remaining cash and cash equivalents would stay in the Lynch family trust until debts and expenses are paid. That means the $15.5 million trust value is not the same as a final amount available for immediate distribution.

The Trustee Would Step Aside

The court filing also says Sabrina Sutherland, Lynch’s longtime business manager and the trust’s current trustee, would receive $210,000 and resign from the role. A wealth management firm would take over as successor trustee.

That change matters because the settlement is not just dividing money. It also changes who will control the trust after the agreement takes effect.

Why a Judge Still Has to Sign Off

The settlement involves a minor beneficiary, so a court-appointed guardian ad litem is asking the judge to approve the agreement as being in the child’s interests. The guardian’s filing says the parties resolved their differences through mediation.

A settlement reached in mediation can resolve a family dispute, but the requested distributions and trustee changes do not become the court-approved outcome until the judge acts.

Nov. 12 Is the Next Date That Matters

The approval hearing is scheduled for Nov. 12 in Los Angeles Superior Court. Until then, the family has an agreement, not a final order.

For Lynch’s estate, the largest unresolved question is no longer whether the parties can reach a deal. It is whether the court will approve the one now on the table.

References: Judge’s Approval Sought in Settlement Between Parties in David Lynch Trust