bills_fan Posted December 15, 2006 Share Posted December 15, 2006 Check this out. It seems Lamar Hunt has, once again, shown the proper way to deal with your team, even in death. Man I really respect him as an owner. Chiefs Team in Trust Link to comment Share on other sites More sharing options...
5 Wide Posted December 15, 2006 Share Posted December 15, 2006 Check this out. It seems Lamar Hunt has, once again, shown the proper way to deal with your team, even in death. Man I really respect him as an owner. Chiefs Team in Trust 867673[/snapback] I thought Ralphs family said they didn't want the team? I could be wrong, but if they do want the team, why isn't Ralph following this model put in place? Link to comment Share on other sites More sharing options...
Hammered a Lot Posted December 15, 2006 Share Posted December 15, 2006 Check this out. It seems Lamar Hunt has, once again, shown the proper way to deal with your team, even in death. Man I really respect him as an owner. Chiefs Team in Trust 867673[/snapback] A couple of years ago R.W. had a horse running in the Derby and the owners were listed as Wilson Family TRUST Link to comment Share on other sites More sharing options...
plenzmd1 Posted December 15, 2006 Share Posted December 15, 2006 A couple of years ago R.W. had a horse running in the Derby and the owners were listed as Wilson Family TRUST 867900[/snapback] we need an estate and tax lawyer here, but I think if he puts it in a trust there is no way to monetize the asset and and also prevent it from the death taxes associated with it. I don't know why, but I was always under the impression that while certainly not worrying about where his next meal is coming from, Ralph and his family are not uber wealthy like the Hunt family. So, the ability to get money out of the franchise upon his death may be important to Ralph, and how he views his legacy to the family. BTW, can't remember all the exact details, but when Jack Kent Cooke died, he left the team in a charitable trust, expected his son to be able to buy the team. Then ole Danny and Al Lerner stepped in and starting bidding so much that John Cooke could not afford it anymore. Most said it was Jacks intention to be able to deliver a bunch of money to charity, have the kid have a vested interest in the team, but one that he paid for, and aviod a ton of death tax. He delivered on two of three, but his kid got screwed out of the franchise. Link to comment Share on other sites More sharing options...
Smerlas 'stache Posted December 15, 2006 Share Posted December 15, 2006 we need an estate and tax lawyer here, but I think if he puts it in a trust there is no way to monetize the asset and and also prevent it from the death taxes associated with it. I don't know why, but I was always under the impression that while certainly not worrying about where his next meal is coming from, Ralph and his family are not uber wealthy like the Hunt family. So, the ability to get money out of the franchise upon his death may be important to Ralph, and how he views his legacy to the family. 867915[/snapback] i'm no estates or tax attorney, but i know that the issue of the death tax is a big issue for the wilson family. they have wealth, but insufficient liquidity to cover the hit that would come from the transfer of the franchise. i do know that in 2010 there is no death tax - and then in 2011 it comes back strong (i think it's lighter now than it has been in past years). the gallows humorist in me prays that if ralps passes away in the next few years, he does so in 2010. Link to comment Share on other sites More sharing options...
Chef Jim Posted December 15, 2006 Share Posted December 15, 2006 i'm no estates or tax attorney, but i know that the issue of the death tax is a big issue for the wilson family. they have wealth, but insufficient liquidity to cover the hit that would come from the transfer of the franchise. i do know that in 2010 there is no death tax - and then in 2011 it comes back strong (i think it's lighter now than it has been in past years). the gallows humorist in me prays that if ralps passes away in the next few years, he does so in 2010. 867937[/snapback] For estate tax puposes yes it would be idea for Ralph to die in 2010. However there will be no step up in cost basis for cap gains taxes. Therefore his children (is his wife still alive?) would inherit his basis (what he paid for the team) and be hit with a huge tax liability when/if they sell. You're all making some major assumptions that Ralph has not made arrangements for his family to have the liquidity to pay the estate tax. There are companies that will insure people for serveral million dollars to provide the liquidity and allow you to finance the premiums. Putting the team in a trust would eliminate the estate tax to the family however also limit their control. What could happen is that the trust would then sell the team and the trust would in turn provide an income stream to the family. Don't worry, extremely rich people die every day and it doesn't mess up their companies/families too much. That's why estate attorneys make tons of money. Link to comment Share on other sites More sharing options...
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