Attanasio: my kids can take this over some day

[HiAndTight]

Oh boy let's talk estate tax.

 

So Mark A is already employing an Estate tax strategy by not owning 100% of the Brewers. The value of the estate gets a fairly significant discount on the overall value of any businesses that are not 100% owned.

 

Given Mark A's wealth before he acquired the Brewers I'm certain he already has life insurance policies that will cover significant portions of any estate tax liabilities he has. Whole life insurance policies are great ways to transfer wealth for several reasons but mainly because the proceeds of a life insurance policy are not taxable to the heirs.

 

And finally I don't follow estate taxation that closely, but I have never heard of a business ever being sold due to the estate tax. For the simple reason that if a business is valuable enough to be subject to the estate tax it most certainly could qualify for a loan to cover any estate tax due on it. But good stuff. Hope we don't have to talk about this for 30 years. Maybe Tom H. can ask Mark A about his estate planning in the offseason.

 

You've never heard of anyone losing a business due to the estate tax? I'm certainly not saying it's the norm, but it is certainly not unheard of. Of course by "losing it," we're talking about having to sell in order to cover it in this context. With regard to gifting it, I know people with those types of means are far more adept at working around the tax laws, but I think you can only "gift" like 13K a year now to your kids tax free.

 

In any event, billionaires have plenty of resources and corporate lawyers to figure these things out. The main point is really that Mark is isn't planning on selling this team to make a billion dollars on his investment. He wants to keep it and it looks pretty obvious he losts what he's doing.

[AdvantageSchneider]

Oh boy let's talk estate tax.

 

So Mark A is already employing an Estate tax strategy by not owning 100% of the Brewers. The value of the estate gets a fairly significant discount on the overall value of any businesses that are not 100% owned.

 

Given Mark A's wealth before he acquired the Brewers I'm certain he already has life insurance policies that will cover significant portions of any estate tax liabilities he has. Whole life insurance policies are great ways to transfer wealth for several reasons but mainly because the proceeds of a life insurance policy are not taxable to the heirs.

 

And finally I don't follow estate taxation that closely, but I have never heard of a business ever being sold due to the estate tax. For the simple reason that if a business is valuable enough to be subject to the estate tax it most certainly could qualify for a loan to cover any estate tax due on it. But good stuff. Hope we don't have to talk about this for 30 years. Maybe Tom H. can ask Mark A about his estate planning in the offseason.

 

You've never heard of anyone losing a business due to the estate tax? I'm certainly not saying it's the norm, but it is certainly not unheard of. Of course by "losing it," we're talking about having to sell in order to cover it in this context. With regard to gifting it, I know people with those types of means are far more adept at working around the tax laws, but I think you can only "gift" like 13K a year now to your kids tax free.

 

 

If you can point me to a story of someone losing the business they inherited please do so.

[adambr2]

I remember seeing something about George Steinbrenner's heirs being able to avoid the estate tax completely when George died, but I don't remember how or why.

[nodakfan17]

I remember seeing something about George Steinbrenner's heirs being able to avoid the estate tax completely when George died, but I don't remember how or why.

This was touched on a little earlier in the thread, but the short answer is there was no estate tax in 2010. The Steinbrenner Family was very lucky.