Jacqueline Kent Cooke: Heiress Arrested

[GTripp0012]

Originally Posted by jgalecpa

I can tell you why he did that.

The US Estate Tax (Title 26 USC) taxes the Gross estate at about 55%.

55% of $800m is $440m.

The payment must be made in cash.

The problem is the gross estate consisted of (mostly) the Washington Redskins, a non-cash asset.

There simply was no cash to pay that kind of tax.

The estate tax does NOT apply to amounts left to a charity, hence the JKC Foundation was born.

It is a standard estate planning device.

Ask Warren Buffet, Bill Gates, Etc.

J-Dawg.

Good info.