Originally Posted by bucksfan2
I believe it is rather simple. You take the value at the time of death and then apply the estate tax. The estate tax is permanently set at $5M adjusted for inflation. So for whatever the value of the franchise is at the time of death minus $5M and then you pay estate taxes on the difference.
@SeaRay the transfer would have to take place over a long period of time. There may be other ways of transferring money that I do not know if, but according to the IRS you are allowed to gift someone $14000 or $28000 if you are married free of tax. In August of 2012 Forbes valued the Bengals at $871M. That would take a long time in regards of gifting in order to get Pumpkin the controlling stake.
As I recall this was going on before Marvin got to town and was one of the reasons the Bengals were so cheap. They were pocketing a lot of that money and using it for Katie to buy shares from her Dad. Obviously the value of the shares were set lower than free market value. My point is, this franchise will not run into the problem that the estate of Jack Kent Cooke where they had to sell to Dan Snyder. MB knows how to play this game and he's already beaten the IRS once