re: Should we take the Benson ownership appeal as a serious threat to stability?

What power do you think comes with ownership of the shares in the trust?

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What power do you think comes with ownership of the shares in the trust?

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Depends on the trust, right?

I'm not arguing your point on that, really.

I think you are saying that Gayle, even if Rita "gets" the trust, will still control the team?

Yeah, man, I hope you are right, but ID think so.

If you're Dad say that's the deal, I'll agree.

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Yeah, man, I hope you are right, but ID think so.

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I posted the actual law, have googled the hell out of it, and talked to my dad.

She won't owe an estate tax

Look at 26 US Code 2056 I posted earlier under A, allowance for marital deduction

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On the Raiders deal, at the time of his death, Al only owned about 35-40% of the team, so that helped. I couldn't read that article, you have to be a member.

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I googles Raiders and estate taxes and got around the membership block. Just like getting around the Wall Street Journal membership block.

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So Mr. Benson is trying to revoke the trust, by placing assets = to the value of the trusts. This is what Rita and the other heirs are fighting, correct?. (I think we all agree)

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It depends on how the trust is worded. IIRC the Texas judge that blocked the transfer did not object to taking the Saints and Pelicans shares out, but thatthe value of what he wanted to replace them with did not equal the value of shares.

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Robert A. “Bobby” Rosenthal — the trustee for Benson’s daughter, Renee Benson, and her children, Rita LeBlanc and Ryan LeBlanc — said he reached that conclusion because the Saints and Pelicans owner has yet to provide any “current valuations” of his assets, a letter dated Feb. 27 explained.

Rosenthal’s lawyer, Kevin P. Kennedy, addressed that letter to one of Benson’s attorneys in New Orleans, Paul Cordes Jr.

“Mr. Benson cannot effect an exchange until the valuations have been submitted to Bobby and approved by him,” Kennedy wrote. “Certainly, an exchange for an amount to be determined in the future cannot constitute the exchange of equivalent value.”

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LINK

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So, let's say he isn't successful and Rita et al. get the Saints/Pels when he passes.

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They wouldn't get the Saints and Pels. They would get 40% or whatever percentage of share of the Saints and Pels that is in the trust and Gayle would get the other 60%.

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The way I understand it, even with a trust, they will still be responsible for the taxes on trust at the time the assets were placed in the trust, but not the appreciation since that time.

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It depends on how good your lawyer and what the estate tax laws on the day that the person dies. If Tom lives long enough to see a republican get back in the white house, he would owe nothing since all the GOP candidates have getting rid of the estate tax in their tax plans, but if Clinton or Sanders get in he could owe more so it is hard to speculate. However with a trust, it can be set up that the assets are sold after Gayle dies and then there would be no tax liability. It can also be pre-approved with the IRS and the taxes be paid out over 10 years. There are alot of ways to get around it. I guess I should have said estate taxes wouldn't be a problem instead of no taxes, but the principle is the same.

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An irrevocable trust offers many tax advantages over a direct gift, especially on the subject of capital gains taxes. If the trust is structured as a grantor-type trust, all appreciated assets transferred into the trust, such as real estate or a stock portfolio, can still receive a step-up in basis upon the death of the grantor. If these same assets were gifted directly to the beneficiaries, they would retain the same basis as the donor had, and in most cases owe a great deal more in capital gains taxes.

This style of trust also provides a tax advantage for a grantor’s principal home. The trust retains the grantor’s capital gains tax exclusion under 26 U.S.C. § 121, which would not be available if the residence was gifted directly to the beneficiaries during the lifetime of the owner.

Settlors can even set up their trusts so all of the trust income is tax deferred until the trustee distributes the income to beneficiaries. This can provide some incredible tax advantages to the grantor’s family.

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LINK

So basically it all depends on how the trust is written for the tax liability, but since Benson was declared competent that is nothing the 3Rs can do to get the Saints and Pelicans. At best they would get 40%, but Gayle gets 60% and the NBA and NFL can force the 3Rs to sale their 40% if Gayle's 60% is ever sold. When the NBA bought the Hornets from Shinn they also bought Chouest shares even though he wanted to stay on. LINK The NFL can also force a sale if they wanted to, but have done so since the 49ers situation in the 90s.