Saturday, October 27, 2012
As I have previously discussed, the estate tax rate is projected to rise to its pre-Bush era tax cut rate if Congress chooses to not act before the end of the year. Some people, including sports stars and hall of famers, have decided to sell their old memorabilia, although not all are looking to take advantage of the favorable estate tax exemption. Among these stars are Don Larsen, Bob Knight, Evander Holyfield. Provided below is an excerpt from the National Review Online explaining their situation:
Rather than leave a 56-year-old uniform hanging in a closet at his Idaho home, Don Larsen decided it should be used for education.
He’s auctioning off the Yankee pinstripes he wore in 1956 when he pitched the only perfect game in World Series history, and will use the proceeds to pay college tuition for his grandchildren, one in college and the other a high school freshman. . . .
Similarly, Bob Knight is selling his NCAA championship rings and other mementos to fund education in his family. “I have two grandsons,” the Hall of Fame basketball coach said, “and my wife has a niece and nephew, who would get good use out of this.” . . .
[Evander] Holyfield, like Larsen, said he didn’t consider the tax implications of selling items now rather than after the first of the year.
“This is something new to me,” the former heavyweight champion said.
But the auction houses say the tax issues come up in the planning.
See Corey Dean Hall, Selling Memorabilia Before the Estate Tax Rises, Right Field, The National Review Online, Oct. 25, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.