Saturday, July 6, 2013
New York Daily News: James Gandolfini Will a Tax 'Disaster,' Says Top Estate Lawyer:
The taxman is coming after James Gandolfini's heirs. The late Sopranos star's will is "a disaster" that could see over $30 million of his estimated $70 million estate go to the government, a top estate lawyer told the Daily News.
"It's a nightmare from a tax standpoint," said William Zabel, who reviewed the document at The News' request. The 51-year-old's "big mistake" was leaving 80% of his estate to his sisters and his 9-month-old daughter, Zabel said. That made 80% of the estate subject to "death taxes" of about 55%, and the bill is due in nine months, Zabel said.
That means his family will have to start selling off his property and liquidating his assets soon in order to pay the tab, since it's unlikely the actor had tens of millions of dollars in cash on hand. ... The 20% of the estate that Gandolfini left to wife Deborah Lin isn't directly subject to the death tax, but even she'll take a big hit, Zabel said. The will calls for the shares to be divvied up after all the taxes are paid, which means Lin will get 20% of the $40 million left after taxes, instead of 20% of $70 million. "It's a catastrophe," Zabel said. ...
He said there are ways for the beloved actor's family to get out from under the enormous tax burden, but it would be tricky. One solution could be for the sisters and daughter to renounce their shares in the estate for payments later on down the road.
(Hat Tip: Bill Turnier.)
- ABA Journal, Gandolfini Will Is a Tax ‘Catastrophe,’ Estates Lawyer Says
- Iowa Planning and Probate, Was James Gandolfini's Will a Tax Disaster, or a Reasonable Plan For His Situation?
- Questionable Planning, Terrible Reporting