Detroit Pistons Billionaire Estate

Tuesday, August 25, 2015

The IRS has finally reached an agreement in U.S. Tax Court with the estate and heirs of Bill Davidson, the billionaire former owner of the Detroit Pistons and other sport teams, as well as a leading industry business owner of glass, automotive and building products.  Davidson was a great entrepreneur and philanthropist who supported Jewish and Israeli initiatives.  His estate was estimated to be worth over $1 billion. As owner of the sports team, he was the first to own a private plane for his team. He also financed his own arena and changed the approach to marketing the NBA.

This week, Davidson’s estate won a major victory over the IRS. Originally, the IRS claimed the estate owed approximately $2.8 billion in gift, estate, and generation-skipping taxes.  The IRS claimed that Davidson’s accountants severely undervalued the stock that were placed in his families’ trusts. However, IRS will receive a grand total of over $385 million after the heirs disputed the original amount requested.

On Monday, July 6, 2015, the final decision was made by the U.S. Tax Court after two years of legal battle with the IRS to dispute the amount owed. The breakdown of the IRS payout is as follows: gift taxes total $186 million, estate taxes total $152 million and generation-skipping taxes total $48 million.

The Strategic Tax Lawyers are Estate Planning Attorneys and Will and Trust Attorneys who can help you coordinate a good estate plan to avoid probate and other unnecessary financial stress. The skilled team at the Strategic Tax Lawyers have provided estate planning services for their clients by helping them protect their assets.  Probate can be extremely stressful and time consuming.  The Strategic Tax Lawyers can help you avoid probate by creating a will and/or living trust. It is important to decide who you want to inherit your assets, who you want to make medical decisions for you and who you want handling your financial affairs when you no longer are able to.  This is important for estate planning attorneys to begin to draft a will for you. By having a will and other safeguards in place, you can reduce the amount of estate taxes that your heirs will acquire.  Not only that, once your estate plan is put in place legally, you can have the peace of mind to know that your assets will be properly allocated.  

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