Estate planning is not just about death and taxes, and it's not just for people on their way out. They can be simple or complex, for individuals or multi-generational families. In the case of the New York Yankees, the Steinbrenner estate plan could be so sophisticated that it could affect the youngest of hischildren and grandchildren… and even Yankee fans across the country.
The What: It appears George Steinbrenner, the late owner of the New YorkYankees, crafted his estate plan in a manner that may limit the rest of his family's ability to sell the team.
The How: It is believed that Steinbrenner turned the Yankees, the team his family has owned since 1973, into the family's primary asset. Specifically, it is believed Steinbrenner "set up myriad trusts throughout the Yankees empire for his children and grandchildren."
The Why: There's no doubt Steinbrenner was an icon in sports ownership. Steinbrenner's goal in creating the "myriad of trusts" may have been to protect the family's ownership interest in the team. After all, he was an icon. He was a character on Seinfeld, and he never even appeared on the show!
Impact:
With the current restrictions in place, the Steinbrenners will likely remain the captains of the Yankee ship for decades to come.  Unless all of the heirs agree to sell and present a plan to outside trustees to show that a sale that "benefits the family," nothing will change for decades to come.  Nevertheless, competing interests remain … Stability for MLB ownership … Cashing out at the height of the market … Competion, innovation and growth … Other family members' financial interests … Diversification of assets… and dynastic legacies.
The What: It appears George Steinbrenner, the late owner of the New YorkYankees, crafted his estate plan in a manner that may limit the rest of his family's ability to sell the team.
The How: It is believed that Steinbrenner turned the Yankees, the team his family has owned since 1973, into the family's primary asset. Specifically, it is believed Steinbrenner "set up myriad trusts throughout the Yankees empire for his children and grandchildren."
The Why: There's no doubt Steinbrenner was an icon in sports ownership. Steinbrenner's goal in creating the "myriad of trusts" may have been to protect the family's ownership interest in the team. After all, he was an icon. He was a character on Seinfeld, and he never even appeared on the show!
Impact:
- The good: By putting assets in a trust, a few benefits exist. The assets remain under the management of a private trustee and do not become public record upon his death. The trust may also enable the family to postpone,reduce or even eliminate some estate taxes, depending on the applicable law.
- The bad: The problem is, the trusts are believed to contain restrictions that would make selling the team difficult, if not impossible. Even with an iconic father, perhaps the rest of the family has other desires for their future fortune. In the wake of the $2.15 billion sale of the Dodgers, perhaps the remaining Steinbrenner crew would look favorably on a $4 billion Yankeepayday.
With the current restrictions in place, the Steinbrenners will likely remain the captains of the Yankee ship for decades to come.  Unless all of the heirs agree to sell and present a plan to outside trustees to show that a sale that "benefits the family," nothing will change for decades to come.  Nevertheless, competing interests remain … Stability for MLB ownership … Cashing out at the height of the market … Competion, innovation and growth … Other family members' financial interests … Diversification of assets… and dynastic legacies.