“Tax ramifications of Irsay’s death remain unknown”, read the headline of a piece in the Indianapolis Star, alluding to the recent death of Colts owner Jim Irsay. “Irsay leaves behind an NFL franchise valued at $4.4 billion, “Dana Hunsinger Benbow reported. ,”But what are the tax ramifications of that?” Hunsinger Benbow asks. “The Irsay daughters… most likely don’t have the $1.7 billion in liquid cash they would need to pay the massive 40% estate tax the Internal Revenue Service would assess on a property valued at what the Colts franchise is worth, according to Forbes.com “.
“I’m not his attorney,” founder of our Indiana estate planning firm, Rebecca Geyer responded. “My guess is this planning has been done long before now…” The whole concept of estate planning is to ensure control over your assets and document your wishes in case of unexpected death or incapacitation.
“The critical importance of privacy and confidentiality in the estate planning process cannot be overstated,” Boston-based attorney Richard P. Breed III emphasizes. “These principles not only protect a client’s sensitive information but also ensure the integrity of their wishes.” If made public, the author stresses, that information could lead to:
- family disputes
- unwanted attention
- attempts to influence the estate
- exploitation
“Each of us has an amount that the federal government provides to us that we’re allowed to either gift away during our lifetimes or give to people at our death without paying gift or estate tax. The 2025 gift and estate tax exemption amount is $13.99 million per person,” Rebecca Geyer commented to the reporter, which would represent just .3% of the Colts’ estimated value, which, absent proper planning, would present a tax issue.
Noting planning tactics that might, in fact, have been part of Irsay’s estate planning, Rebecca Geyer mentioned:
- annual gifts which can be made without requiring the filing of a gift tax return
- the purchase of life insurance to cover at least a portion of estate taxes
- lifetime transfers to heirs
“I can’t even venture to guess how he set this up,” Rebecca Geyer told the reported. “I don’t know.”
Whether a sports franchise is involved or not, when it comes to proper estate planning, keeping information private is the name of the game.
– by Cara Chittenden, Attorney with Rebecca W. Geyer & Associates
