Taxes Probably Contributed to Buffalo Bills Owner Decision to Keep Team While Still Living
While he was still living, Ralph C. Wilson Jr. was not only resolute about maintaining his sole ownership of the Buffalo Bills but he passionately wanted his team to stay in Buffalo.
There might have been some financial motives to keep the NFL team before he passed away in March 2014.
If he was still alive when he sold the team, his income taxes would have been based on the profits of his initial investment of $25,000 in 1959. The team is now worth $870 million.
If the team was sold today, the successors to his fortune would have to pay capital gain taxes which would be the difference between the team value when he died and whatever the eventual sale
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Before the 95-year old died, the taxes such as the estate, capital gains various other federal and state levies would have played a major role in his final decision.
According to David H. Alexander an estate attorney in Buffalo at Gross Shuman Brizdle & Gilfillan, those are the major problems that will come up with estate taxes irrespective of the final decision.
Wilson did not publicly air how his estate would be dealt with after his death. He did, however, commit to keeping the Bills at Orchard Park as long as he was alive. In 2013, he signed a 10-year stadium lease and only provided a single detail about how he perceived the team would be once he died.
In 2007 he said to the Buffalo News that the team will be sold. He had no plans of leaving it for his wife or children to operate.
Sources close to the team and NFL said to The News that the Bills would go into a trust after Wilson's death. Doing this will maintain the management of the team as his estate is being settled. Alexander also mentioned that a trust could keep his bequests from becoming
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Further complicating that tax scenario is what his heirs will owe in federal estate taxes. Attorneys said that estate taxes can be as high as 40% and will depend on Wilson's final arrangements.
Alexander stated that for assets that large a considerable amount of planning would have taken place, where different scenarios would be considered, overall costs and benefits and how they would ultimately impact Mr. Wilson now and into the future.
Selling the team would also have been one of the decisions of the estate taxes evaluation.
As Alexander stated, a team valued at $800 million would have to pay $320 million or 40% at some point.
Hoops mentioned that certain estate planners would advise a wealthy client like Wilson to take advantage of insurance policies to pay for some of the estate taxes.
Even with expert estate planning, Hoops went on to say that unforeseen problems tend to come up after death.
Even with the best estate plan ever devised, Hoops said it boils down to the family and heirs that are left to make the
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