James Move to Miami, Steinbrenner Death, Raise Tax and Estate Planning Questions for Many Americans

The news of basketball superstar LeBron James' recent move to Miami and the death this week of iconic Yankees owner  (and Florida resident) George Steinbrenner, share more in common than just being two of the biggest sports stories of 2010. Their recent newsworthiness brings to light major tax planning issues that actually impact many Americans, regardless of their net worths, says Gary A. Phillips, a trusts and estates attorney and member of Cole, Schotz, Meisel, Forman & Leonard, P.A. (New York).

"Since Mr. Steinbrenner 's  death occurred in 2010, during an unplanned gap in the federal estate tax, his heirs could be saved upwards of $500 million in taxes, depending on how the estate is structured," says Phillips.  The fact that Mr. Steinbrenner probably died a resident of Florida only enhances the potential tax savings, as Florida has no estate tax.   "Further,  do not discount the non-basketball reasons for Lebron James' move.  His relocation to Florida  will save him millions of dollars in state  income  taxes, since Florida has no state income tax. While this was most certainly not the deciding factor in his signing with the Heat, it does factor in to the overall equation."

Mr. Phillips, who recently authored a book titled On the Road to Florida to assist clients in understanding the tax  savings  that come with relocating to Florida to retirement, says that many Americans face similar tax decisions, albeit on a smaller level than these billionaires.
 
"Whether preparing a will or considering a move to another state, there are tax consequences and implications that must be considered. A strong understanding of the laws impacting one's decisions is important to avoid major headaches when it comes to dealing with Uncle Sam."

Mr. Phillips is available to discuss either of the news items mentioned, as well as the issues facing clients relocating to Florida from highly taxed states. [07/15/2010]