(Gregory P. Mango)
Where there’s a will, there’s a way — to keep George Steinbrenner’s millions all in the family.
In his last will and testament, a copy of which was obtained by The Post yesterday, the legendary Yankee owner went to great lengths to keep the taxman at bay.
The Boss’ will stipulates that an undisclosed portion of his estimated $1.1 billion sports, shipping and racehorse-breeding fortune will go into a trust for his widow, Joan, 74.
And it assigns Steinbrenner’s lawyer, Robert Banker, to decide whether that trust pays federal estate tax for this year, or not until after Joan Steinbrenner dies.
Although there currently is no federal estate tax for 2010, that could change if Congress acts to close the loophole and enacts such a tax retroactively, putting Steinbrenner’s estate on the hook for $500 million or more.
But under the law, Banker would have nine months from Steinbrenner’s July 13 death to decide if the estate should pay estimated estate tax for a 2010 filing — or at the rate in effect whenever Joan dies. Banker can take another six months before deciding to make that move permanent.
“That would give him maximum flexibility to deal with the estate tax,” said Peter Valente, a top estate lawyer at the Blank Rome firm. “They have a lot of time to deal with this.”
Valente said that because Banker will not have to decide until after Congress acts — or fails to act — on the estate-tax question, he will have a clearer picture of what each scenario would cost The Boss’ estate.
If Congress never acts to close that loophole, then there would be no estate tax ever owed by Joan or any of the other beneficiaries.
Steinbrenner’s will also reveals that the bulk of his assets — including a controlling interest in the Yankees — goes into a trust.
The will states that Steinbrenner’s four grown children — Hal, Hank, Jessica and Jennifer — who will act as the estate’s executors, cannot sell the Yankees and the other holdings without a majority vote of the trustees. Those trustees are not identified in the will.
The will, signed by Steinbrenner on July 5, 2005, and filed last Thursday in Tampa probate court, does not identify what percentage of the estate that Joan, any other family member or any charity is receiving. It also is not clear if the marital trust set up for Joan contains the Yankees and other assets.
Valente said it’s possible that the marital trust will include the overwhelming bulk of his estate because it would give the estate the most flexibility for dealing with the estate-tax question.