Austin Estate Lawyer

Donation Sparks ‘Academics or Sports’ Controversy from Austin, Texas Estate Attorneys and Probate Attorneys

"A $4 million gift creates controversy of expenditures: academics or sports?”

The Independent reported recently on a controversy created by the $4 million charitable bequest to the University of New Hampshire from a former librarian at the school in "University to buy football scoreboard with thrifty librarian's money, outraging critics."

Robert Morin left instructions that earmarked $100,000 to the school library where he worked, but the remainder of the donation was given freely. The university quickly announced how it would spend it.

The plans include spending $1 million on a new football scoreboard, which has outraged some people who would rather the money be spent on academics.

For its part the university states that in the last years of his life Morin had grown to love football and that he would approve of the plan. The controversy is, of course, part of a much larger debate about athletics and academics at colleges.

It is unlikely to be resolved any time soon.

One lesson for donors to keep in mind is that if they do not wish for their donations to be used in specific ways, then that needs to be stated in the bequest. What Morin would have wanted cannot be definitively known.

By not leaving instructions, it has to be assumed he wanted the university to spend the money however it sees fit.

A qualified estate planning attorney and probate attorney can guide you on any plans for a charitable intent.

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area. For more information and to learn about our firm, visit Nickerson Law Group’s website. www.estateplanningaustintexas.com

Reference: Independent (Sept. 16, 2016) "University to buy football scoreboard with thrifty librarian's money, outraging critics."

 

Business Succession Dos & Don’ts from Austin, TX Estate and Probate Attorneys

“While some might think family-owned sports teams are more plagued than Boston was by the 86-year “Curse of the Bambino,” I encourage you to look past curses to investigate causes. Identify potential estate and financial planning challenges your business might face, and deal with them. You’ll have better odds your family ends up on the winning side.”

What can we learn from sports teams when it comes to passing on the family business? As it turns out, there are several good and bad examples of business succession in the sports world.

Recently, we have seen the forced sale of the Los Angeles Clippers because the owner's racist rant came to light. The Los Angeles Dodgers were recently sold in part because of the bitter and protracted divorce of its owners. Now, the owner of the New Orleans Saints is in a competency dispute with his family that could force the sale of the team.

In recent memory, both the Chicago Cubs and Miami Dolphins have been sold because the owner passed away without properly planning for how estate taxes would be paid.

Forbes has more on these situations in an article titled "Another Family Sports Team Failure, Another Lesson Learned."

The article also includes lessons to be learned from sports teams for other family businesses, which include:

• Poor planning outside of the business can cause the business to fail. This is especially true if the failure to plan for estate taxes causes the sale of the business.
• Family businesses can thrive with good planning. Both the New York Yankees and Pittsburgh Steelers have recently survived as family owned businesses after the owner passed away.
• No matter how much planning you do, bad things can still happen. The key thing is to plan well enough that the damage from any issues is contained.

Without question, one of the wisest moves you can make is to work with an experienced estate planning attorney in Austin, TX. He or she has “been there and done that,” when it comes to the successful transfer of the business and preservation of family relationships in the process.

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area.  For more information and to learn about our firm, visit Nickerson Law Group’s website.

Reference: Forbes (February 16, 2015) "Another Family Sports Team Failure, Another Lesson Learned."

The Uncertain Future of Pro New Orleans Teams from Austin, Texas Estate and Probate Attorneys

"An irrevocable trust is a trust generally created during someone's lifetime that is exactly what it says -- it can't be revoked."

Tom Benson and his grandchildren are in a fight over the ownership of the New Orleans Saints NFL football team and the New Orleans Pelicans NBA basketball team after his death.

The family has filed a petition to have the teams' owner declared incompetent and overturn his current plan to leave his sports empire to Gayle Benson, his wife of 10 years.

Benson is believed to control the largest fortune in the state of Louisiana. In 2009, he signed a succession plan that would leave the fortune in the hands of his daughter and grandchildren after 87-year-old Benson passes away. However, Benson has since become estranged from those relatives and recently announced he was changing his succession plan to leave everything to his wife.

WDSU has more details on this story in "Fight over Louisiana's largest fortune continues."

This case will turn on the exact wording of the original trust documents.

If the daughter and grandchildren are already vested beneficiaries of an irrevocable trust, then it will be extremely difficult to change the trust to exclude them. This is one of the reasons that many people prefer revocable trusts. However, there are tax trade-offs to be made with the different trusts.

Clearly these are complex matters and weighing the tax advantages against the benefit of flexibility (or lack thereof) requires close examination, a sharp pencil and good judgment. Irrevocable planning should only be undertaken with careful reflection and the advice of experts.

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area.  For more information and to learn about our firm, visit Nickerson Law Group’s website. - See more at: http://blog.estateplanningaustintexas.com/#sthash.dnZUoSt1.dpuf

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area.  For more information and to learn about our firm, visit Nickerson Law Group’s website. - See more at: http://blog.estateplanningaustintexas.com/#sthash.dnZUoSt1.dpuf

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area.  For more information and to learn about our firm, visit Nickerson Law Group’s website. - See more at: http://blog.estateplanningaustintexas.com/#sthash.dnZUoSt1.dpuf

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area.  For more information and to learn about our firm, visit Nickerson Law Group’s website. - See more at: http://blog.estateplanningaustintexas.com/#sthash.dnZUoSt1.dpuf

The attorneys and team at Nickerson Law Group help families with estate planning, probate, guardianship, and special needs trust planning in Austin, Cedar Park, Round Rock, Georgetown, Lakeway, Bee Cave, Dripping Springs and the central Texas area.  For more information and to learn about our firm, visit Nickerson Law Group’s website. - See more at: http://blog.estateplanningaustintexas.com/#sthash.dnZUoSt1.dpuf

Reference: WDSU News (January 23, 2015) "Fight over Louisiana's largest fortune continues"