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re: A question about this Benson family issue.
Posted on 1/24/15 at 6:14 pm to MrLSU
Posted on 1/24/15 at 6:14 pm to MrLSU
quote:
Correct and Benson doesn't have an additional 2 billion to pledge as replacement equal value.
I talked to one of the top trust experts in the country about this today.
From what he told me, there is no possible way to state that you're correct and usually can be adjusted for just reasoning.
He said he would need the documentation, yet you're apparently an expert without it...
1
Posted on 1/24/15 at 9:13 pm to TigerBait1127
quote:
I talked to one of the top trust experts in the country about this today.
Who?
Just wondering.
Posted on 1/25/15 at 5:50 pm to MMauler
While it has been reported this is an irrevocable trust, not sure that has been confirmed. If so, the heirs/beneficiaries have to approve any asset modifications. What are the chance of that happening ? If it is an irrevocable trust, why would a legal staff think they could change the rules ? Makes no sense.
Who knows what caused the issues, but I feel for Mr. Benson. He executed a trust in the best interest of the family & created the trust to avoid the outrageous estate taxes for someone with this level of wealth.
Unfortunately, the tabloid type stories are where what most want to know. Difficult to understand what causes a rift of this magnitude in a family.
Guessing there is pressure from both leagues to get the issues resolved & out of the media, quickly. Unfortunately, when family is the issue, doubt it will happen anytime soon. Fraid the saga will continue for some time.
The ramifications for we mere fans cannot be underestimated. Stability of management & even franchise location could be at stake. Stay tuned sports fans!
Who knows what caused the issues, but I feel for Mr. Benson. He executed a trust in the best interest of the family & created the trust to avoid the outrageous estate taxes for someone with this level of wealth.
Unfortunately, the tabloid type stories are where what most want to know. Difficult to understand what causes a rift of this magnitude in a family.
Guessing there is pressure from both leagues to get the issues resolved & out of the media, quickly. Unfortunately, when family is the issue, doubt it will happen anytime soon. Fraid the saga will continue for some time.
The ramifications for we mere fans cannot be underestimated. Stability of management & even franchise location could be at stake. Stay tuned sports fans!
Posted on 1/25/15 at 6:24 pm to Tigerntx
quote:
If it is an irrevocable trust, why would a legal staff think they could change the rules ? Makes no sense.
Who knows what caused the issues, but I feel for Mr. Benson. He executed a trust in the best interest of the family & created the trust to avoid the outrageous estate taxes for someone with this level of wealth.
A couple of points.
First, you can draft a trust to say almost anything. But, what drives most trusts of this nature is the estate/gift tax. And, the IRS limits what you can do and still keep the tax advantages wealthy people desire. One of the provisions the IRS has somewhat blessed is the ability to "substitute" assets in an irrevocable trust. And, in some cases, you can even substitute a nonrecourse note. However, you better have more than enough assets to satisfy that note otherwise a trustee would be committing breach of fiduciary duty in allowing the substitution. Here, there was no way in the world that any trustee would do what Benson asked him to do.
Second, there's always a tug-of-war for wealthy people to get as much as possible out of their estates while still maintaining control of their assets. In this case, Benson couldn't "avoid" estate taxes. That would be impossible given his wealth. The reason why he put the Saints/Pels/Other assets in trust is so that any further/future appreciation would stay out of his estate. So, if he put the teams in when their fair market value was $1 billion and the teams are worth $1.5 billion when he dies, he would avoid a flat 40% tax on the extra $500 million. BUT, the billion would still be taxable.
He did this to "help" his family to avoid potentially hundreds of millions in estate taxes, but it's come back to bite him in the a$$. Then again, what Rita, et. al., have alleged about Gayle just might be true -- we don't know.
Posted on 1/25/15 at 9:27 pm to SaintlyTiger
quote:
irrevocable trust
Posted on 1/25/15 at 9:39 pm to Tigerntx
quote:
Difficult to understand what causes a rift of this magnitude in a family.
Money
Posted on 1/25/15 at 9:50 pm to MMauler
quote:
Then again, what Rita, et. al., have alleged about Gayle just might be true -- we don't know.
I don't hang out inside the Benson household, but I would be willing to bet my household that Randy Smith's petition contains more than one . . . shall we say . . . stretching of the truth. The people I know who have worked with and for Gayle and Tom Benson on various projects have never suggested anything that would give credence to the allegations in the petition.
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