Tuesday, December 3, 2013

Estate and Capital Gains Tax Issues Cloud Stan Musial's Estate

A recent post on Forbes.com highlights potential capital gains tax and estate tax issues pertaining to the estate of the late baseball Hall of Famer, Stan Musial.  Specifically, Musial's estate conducted a sale of some of Musial's baseball memorabilia, which brought in a total of $1.2 million to the estate.  The author speculates that while Musial's estate may avoid an estate tax should Musial's total assets be less than the $5.25 federal estate tax exemption in effect for 2013, the estate may nonetheless be subject to the payment of significant capital gains taxes in the event that the date of death value of the items sold at auction -- as determined by an appraisal -- was substantially lower than the actual sale price of those items.

This case highlights that, as fewer estates are subject to the payment of federal estate taxes, it is increasingly important to focus on managing capital gains tax issues when planning an estate during your lifetime -- and providing for flexibility within the plan to minimize capital gains taxes after death.

The Forbes article can be found here.

No comments:

Post a Comment