Celebrity Estates: Wills of the Rich and Famous Ep 20 – The Wrigley Family: Help Your Clients Avoiding Passing on an Estate Tax Bill — With Scott Steiner
Mar 16, 2020
Scott Steiner, a wealth planning consultant at Calamos Wealth Management, shares his insights on estate planning and tax strategies. He highlights the Wrigley family's costly mistakes in managing their estate tax, emphasizing the challenges of illiquid assets like closely held businesses. Steiner discusses using family LLCs to maintain control while planning for taxation. He stresses the importance of involving heirs early, utilizing exemptions wisely, and the critical role of buy-sell agreements in promoting liquidity.
AI Snips
Chapters
Transcript
Episode notes
Wrigley Family Liquidity Crisis
- William Wrigley Jr. pivoted from soap to baking powder to chewing gum, which made the family's fortune.
- In 1981 William Wrigley III sold the Cubs to pay a massive estate tax bill tied to illiquid assets.
Obliviousness To The Estate Tax
- Many wealthy people are simply oblivious to the estate tax and its impact.
- The estate tax is a government fee on transferring wealth above a threshold, not a second income tax.
Start By Asking If They Care
- Ask clients if they care about reducing estate taxes and gauge their tolerance for government taking a share.
- If they object, gather goals and beneficiaries to design tailored strategies like trusts or gifts.