Keeping Assets in the Family
In 2011, the sporting community suffered a devastating blow when the news circulated about the death of longtime Oakland Raiders owner Al Davis. Davis, a member of the Professional Football Hall of Fame, distinguished himself as the epitome of a winner, and that was indeed his goal. Davis issued a single mandate to his coaches and players: “Just win, baby.”
Apparently they took his mantra to heart. Over the years the Raiders captured no less than four AFC crowns and they won the Super Bowl three times. Davis was a sometimes controversial figure, but there is no debating the fact that he truly loved the sport of football and the team that he owned for some four decades.
The question of the continuity of Raiders ownership arose after the shock of Davis’ death subsided. When people who have considerable wealth pass away their heirs are faced with the prospect of having to pay the federal estate tax, which right now carries a maximum rate of 40%. When you have one very huge asset such as a majority share in the Oakland Raiders, a team that is valued at $761 million by Forbes, it can become necessary to sell the interest in the team simply to be able to pay the tax bill.
In this case, Al Davis apparently recognized the threat of the estate tax and planned appropriately. NBC Sports reported that they have sources with inside information about the matter who have indicated that Carol, Al’s wife, and his son Mark will indeed hang onto the franchise and lead it going forward.
Few of us are faced with the prospect of losing a professional sports franchise. However, many Americans own small businesses that mean a lot to them. If you want to implement strategies that keep your business in the family, simply take a moment to contact an estate planning attorney who has a background handling small business succession matters.
The Zimmer Law Firm can help. 513.721.1513 or firstname.lastname@example.org