IRS DEATH TAX GUTTING THE DEAD: SOPRANO’S JAMES GANDOLFINI’S $70 MILLION FORTUNE IN CATASTROPHE AS ALMOST HALF OF IT WILL GO TO IRS

Expert calls James Gandolfini’s will ‘a disaster’ because almost half of his $70 million fortune will go to taxes

  • The former ‘Sopranos‘ star is estimated to be worth about $70 million
  • Gandolfini left 80% of his estate to his nine-month-old daughter and sisters
  • The actor died of a heart attack in Rome last month

By Ryan Gorman DailyMail

PUBLISHED: 22:39 EST, 5 July 2013

James Gandolfini’s estate is about to be gutted by the federal government.

Gandolfini will calls for 80% of his estate to go to his sisters and his 9-month-old daughter, according to reports, which subjects them to death taxes – which are levied at a rate of about 55%. The remaining 20% goes to his widow.

As written, the will subjects everyone involved to significantly more taxation than is normally the case.

 
Acclaimed: James Gandolfini accepting one of three Emmy awards for outstanding lead actor in a drama series for his work on 'The Sopranos'Acclaimed: James Gandolfini accepting one of three Emmy awards for outstanding lead actor in a drama series for his work on ‘The Sopranos’

 ‘It’s a nightmare from a tax standpoint,’ estate lawyer William Zabel told the New York Daily News, calling the segregation of assets a ‘big mistake’ saying the will is ‘a disaster.’

The enormous tax bill – about $30 million – will be due in about nine months, according to Zabel.

 Gandolfini, like most high net worth people, probably didn’t keep his assets in cash, which will force his family to sell off his multiple properties and liquidate other holdings to cover the bill, explained Zabel, but they will have a little wiggle room.

‘They can get an extension of time to pay the entire amount, but they’re going to have pay a substantial amount in nine months,’ said Zabel.

 
Famous: Portraying mob boss Tony Soprano on 'The Sopranos' made James Gandolfini a household nameFamous: Portraying mob boss Tony Soprano on ‘The Sopranos’ made James Gandolfini a household name

 Though the exact amount of Gandolfini’s estate is not known since an inventory does not have to be filed until December, estimating it to be worth $70 million leaves heirs to divvy up $40 million after taxes instead of $70 million before taxes, since the will calls for shares to be divided after settling the tax bill, according to the Daily News.

This leaves Deborah Lin, the actor’s widow, with a significantly smaller share of the pie, according to Zabel.

“It’s a catastrophe,” the lawyer said.

 
Loved: Gandolfini with his wife Deborah Lin and son Michael at a 2011 movie premiereLoved: Gandolfini with his wife Deborah Lin and son Michael at a 2011 movie premiere

 Untouched by the taxation issues will be a $7 million life insurance payout to Michael, the actor’s devastated 13-year-old son. Separate trust funds had also been set up for Gandofini’s wife and son prior to his passing, according to the Daily News.

Gandolfini passed away last month in Rome after a massive heart attack. He was in Italy attending a film festival with his family.

Any royalties from his lengthy acting career in film and television going into the estate would also be subject to death taxes. It’s not yet clear whether they are set up to go into trusts or the estate, the Daily News reported.

Should the sisters and daughter renounce their shares in the estate, they would avoid taxes and be able to receive larger payments down the road, since they would default to Lin. Spouses are not subject to the same rates of inheritance taxes as others.

Read more: http://www.dailymail.co.uk/news/article-2357227/Expert-calls-James-Gandolfini-s-disaster.html#ixzz2YFx3NYSs
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5 thoughts on “IRS DEATH TAX GUTTING THE DEAD: SOPRANO’S JAMES GANDOLFINI’S $70 MILLION FORTUNE IN CATASTROPHE AS ALMOST HALF OF IT WILL GO TO IRS

  1. Give me a break, when you have 70 Million you owe it to your family to have a real tax plan in place in case you die, most of those taxes are so easy to avoid by setting up trusts and using insurance to pay out family members just to name a couple of things. Wingnuts are always talking about personal responsiblity, well the estate plan for Mr. Gandolphini (god rest his sole) was not even clsoe to being responsible, so stop trying to blame the Fed Gov’t for taking what is owed. The Fed Gov’t has left taxpayers plenty of loopholes to shield the money from taxes if you don’t take advantage of them whos fault is it really.

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