Fishkind quoted on best practices for managing celebrity estate taxes
Russell Fishkind, a partner in Saul Ewing’s Private Client Practice is quoted in this article in Bloomberg BNA Daily Tax Report which uses Michael Jackson’s debated estate to provide an example of how estate tax attorneys can better serve celebrity clients. The article offers suggestions such as making a charitable bequest, adding a time ban and using valuation discounts.
“A celebrity can also suppress the value of his or her postmortem image and likeness by placing that asset into some kind of business entity and gifting it to beneficiaries,” said Russell with respect to using valuations discounts. “What he (Jackson) didn’t do, but he could have done, was have his IP rights valued and assigned into an entity like a family limited partnership. Then, his attorneys could have had the partnership interests appraised, taken discounts on the value of those shares as permitted under the Internal Revenue Code, and sold the interests to an intentionally defective grantor trust.”
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