Legal Commentary

If you are an heir to a fabulous fortune, particularly the heir to a $1-4 billion group of family businesses like that of the New York Yankees and its associated entities, it is preferable for the property to pass this year.  An AP Article summed it up:

"If Congress doesn't go retroactive, then [Yankees-owner George Steinbrenner] picked a great year to die," said Robert Steele, who heads of the trusts and estates department at the law firm of Wolf Haldenstein Adler Freeman & Herz in New York. "There will be possibly tremendous capital gains tax, but the capital gains rate is a lot lower than the estate tax rate would have been."

Had Mr. Steinbrenner passed away in 2009, the family would have been on the hook for $328 million in estate tax, not counting any state-level tax liability. (Source: Associated Press estimates.)  (The WSJ has it at up to $600 million.  Let's just say it's a lot.)Because he died this year, the tax is $0.  As far as capital gains are concerned, the family has strongly indicated that they do not plan to sell the team.

Branch Rickey, most famous for signing Jackie Robinson, always said, "Luck is the residue of design." I think that is true in many cases, but certainly not here.