Friday, March 29, 2013
The world lost Ed Koch on February 1st, 2013; however, Mr. Koch who left only a 2007 will* to direct the distribution of his estate ... has left much of his estate’s worth to the government in estate taxes and probate fees.
Mr. Koch desired in his will to bequeath his estimated estate of $10 to $11 million to his sister, Pat Thaler, her three sons whom he “adored,” his faithful serving secretary of almost 40 years, Mary Garrigan, and some to the LaGuardia and Wagner Educational Fund with the remainder to other family members.
Mr. Koch’s estate will have to pay a New York state tax of 16% on every dollar over $1 million and a 40% federal tax on every dollar over $5.25 million. If it is assumed that his estate is worth $10 million, this would equate to $1.44 million in NY state estate tax and $1.90 million in federal taxes....
“He was such an accomplished, well rounded bachelor and a man of great Jewish faith. But I find it so surprising, himself being an attorney, that Mr. Koch did not manage his estate plan with the same veracity. I believe he could have done a much better job of avoiding the massive amount of taxes his estate will eventually have to pay,” laments Rocco Beatrice, Managing Director of Estate Street Partners, LLC.
- Forbes, Ed Koch's Will: Taxes Take Big Bite Out Of Hizzoner's Nest Egg, by Deborah L. Jacobs
- Wall Street Journal, The Will Of Koch: Legacy, Family
- Wills, Trusts & Estates Prof Blog, Ed Koch's Will, by Gerry Beyer (Texas Tech)
- Wills, Trusts & Estates Prof Blog, Taxes Take a Large Portion of Koch's Estate, by Gerry Beyer (Texas Tech)