Kansas Estate Planning Attorney Talks About Sports Team Ownership and Estate Planning
Many people own businesses. When these individuals make their estate plans, they work with their estate planning attorney to create the documents that enable their family or business associates to carry out any ideas they have for the continued operation of their businesses, or for the business’s winding up and sale. Some business owners are in the business of owning one or more sports teams. For example, Dan Gilbert owns the Cleveland Cavaliers.
Gilbert is not only the owner of an NBA team, but he also has many other business interests. Some of those other interests involve real estate; others involve other sports teams, including several minor-league franchises. Unfortunately, he recently had a stroke, and it is currently unclear whether he is likely to make a full recovery that could enable him to attend to all of his businesses as usual.
Owners of sports teams like Gilbert face unique challenges when it comes to estate planning. The value of sports teams has increased dramatically in recent years, which can have enormous tax implications to the individuals or entities who are slated to take over ownership of a team when the current owner passes away. Sometimes, owners of sports teams want to convey ownership of their teams in ways that just don’t fit with the provisions of the applicable estate planning laws. It is critical that team owners work closely with their estate planning attorneys to develop estate planning goals and create the documents that will accomplish them.
Major league sports like basketball and baseball require team owners to notify them of their plans for their teams if they pass away or become incapacitated. Whether an owner is dealing with organizations in the big leagues or the minors, it is critical that they consider all of the potential implications that their desired plan will have for everyone involved. Estate planning attorneys for sports team owners often work closely with financial advisors and tax professionals to address the complexities of federal estate taxation, sports team valuation, and other things.
Trusts are often part of the estate planning strategy for sports team owners, in part because they help to address the issue of taxation. The value of sports teams can skyrocket, leaving potential future owners in a position where they are unable to pay the estate tax bill for the team they are supposed to inherit. Recently, insurance policies have become available to sports team owners that provide funds for paying estate tax bills. Payment of estate taxes must be a significant part of any team owner’s estate planning strategy because a failure to do so could force the people or entity who are in the position to take over ownership of the team to sell it if they cannot come up with the resources to pay the tax bill.
In addition to trusts, estate planning attorneys have a variety of tools that anyone can use to meet their estate planning goals. Whether you own a sports team, a business, or both, a comprehensive estate plan can protect the people and the things that are important to you. Call Wichita attorney J. Joseph Weber today to arrange a no-obligation consultation. We can be reached by telephone at (316) 265-7802, or you may contact us online.