I’ve read much of the coverage of yesterday’s hearing in San Antonio about the Benson family squabble and I’m still not certain the salient legal issues were properly analyzed. Based on what I’ve read to this point, it appears the property in the Benson Trust today is a note valued at over $400,000,000. Is the job of the new court appointed receivers to value that note in relation to the assets that were taken in the substitution or dictate specific assets that must be held in the Benson Trust? Seems to me if the value is equal or equalized, the Judge in San Antonio would be steppin’ out dictating to a legally competent Tom Benson what assets he must leave to his seemingly ungrateful daughter and grandchildren.
I have an appreciation for the issues even if I do not consider myself an expert in this area of taxation and applicable state and federal law. There are many very valid reasons to substitute assets in an irrevocable trust that financially benefit both the grantor and beneficiaries. Here is an example:
Swapping Trust Assets to Achieve a Step-Up in Tax Basis at Death ~ Morris Law Group
Hey, Doug! I’m with you. I don’t think “the salient legal issues” have been explained to the PUBLIC at all. But, hell! What do I know? Just a disgraced, embarrassed, humiliated and disbarred lawyer by education, only. And maybe the lawyers who are handling the case on behalf of the litigants know what is going on. But I sure don’t know, and neither does anyone else who has access ONLY to the media reports about the case, with no reference to the pleadings, or what actually was said by the Judge in open Court, or those with knowledge of “foreign”, ie. TEXASS, law. But here’s what I would be concerned about: (1) Why, just why, did this Probate Judge have to bring in “third parties”? (2) And why, just why, did he have to bring in former Mayor of San Antonio Phil Hardberger, who is no stranger to the Benson Family and the Saints NFL team? (3) What, just what, was Hardberger’s role in trying to “woo” the Saints to San Antonio, post-KATRINA, and precisely whose interests did he represent? (4) Wouldn’t that “history” disqualify him from serving in a “quasi-judicial” role in the pending litigation? (5) Has Hardberger severed all ties to his former clients, or might, just might, they (and he) still have designs on an NFL team for San Antonio? (6) Hardberger has been appointed “jointly” with local (San Antonio) attorney, Art Bayern, to do what, just what, exactly? If Hardberger is so “good”, then why does the Judge (who “punted”) also need Bayern? (7) What are Bayern’s “connections” to the Judge, to Hardberger, and to Hardberger’s former clients, and those who coveted an NFL team for San Antonio? (7) Just precisely what, just what, is the BRIEF handed to Hardberger and Bayern by the Judge (who has “punted”)? The MSM has variously reported it as: (a) “assist in resolution of the Benson case”; (b) “assigned…as an assistant in the matter”; (c) “appoint a former mayor and a local attorney…to jointly take over a trust”; and “would take over the decision-making for the trust”. WHY, PRECISELY? Doesn’t “decision-making” include a decision to sell assets? (8) And what really piqued my curiosity (aside from the fact that TEXASS State Court can be as much as a “viper’s pit” as Louisiana) were the following inherently “conflicting” statements as reported by the MSM: “Tom Benson is the steward of that trust, but a temporary restraining order is now in place that will keep him from making any decisions about the assets. Hardberger will have no role in deciding the future ownership of the Saints. His role will be limited to managing the assets in the Texas trust…”. GODDAMN! A “Philadelphia lawyer” couldn’t figure out what these statements (as reported by the MSM) mean! The lawyers may know what is “going on” in TEXASS, but the Louisiana PUBLIC doesn’t. Ashton O’Dwyer.
Me tinks there bees possibly a future road kill stinker in all dis’ greedy Texas fuedin’.
Like Arod I find the ex- Mayor of the empty NFL stadium in San Antonio appointed to anything tied to the Benson Empire feud a conflict of interest especially after the ‘ little cheaper dealer’ double crossed Louisianans and tried to move da’ Saints to become da’ San Antonio Tacos in dere empty Taco shell of a stadium.
Saints’ fans better wake up and think about what this stinking Texas cow paddy environment may lead to.
We better spur da’ San Antonio conspiracy group in da’ balls and demand the Louisiana media investigate all this secret BS, how it may effect Louisiana’s contract wit’ da’ ‘ little cheaper car dealer’ and cross dat road of ignorance before we Saints’ fans become a massive Texas road kill.
As a taxpaying Louisiana citizen I want apiece of the double dealin’, ‘little cheaper’ dealer’s ass too.
My limited understanding is: yes, as a general matter you can substitute another asset of equal value into the trust. But the key words are “another asset of equal value.” Did he really do that? There seem to be 2 problems the claimants are raising with Benson’s action. First, is 400 million really the value of what was in the trust? If the trust included ownership in both teams the true value is likely much more than that. Second, even if the correct value of the assets he removed is 400m, is this IOU sufficiently liquid and secure to actually constitute an asset with that value? He may not have that much cash readily available; or, he might not be expected to have that much cash in the foreseeable future when the trust might need to be funded.
If the answer to either of those 2 questions is no, the claimants would seem to have a pretty good argument that Mr. Benson cannot substitute the IOU for what’s currently in the trust. (If not, I suspect the court in Texas would have thrown their case out as a matter of law, shortly after it was filed, and without a hearing.)
My instincts tell me this is a matter of valuation more than anything else.
LOOK: I wasn’t a “trusts and estates” lawyer, either (even BEFORE my unwarranted disbarment). But the PUBLIC’s access to information is quite limited, and the situation really isn’t being reported accurately. This is understandable, given the fact that even well-intentioned Journalists are not lawyers, much less “trust and estates” lawyers, and the fact that critical documents probably remain undisclosed to all but the “players” and their lawyers. Two examples of the current “confusion”: (1) The Times Picayune has reported that the Texas Trust assets include “Lone Star Capital Bank, car dealerships, a Central Texas ranch and cash.” (2) However, other news accounts say that “the 3R’s as beneficiaries [of the Trust] own 60% of the stock” of the New Orleans Saints, which the Times Picayune did not (to my knowledge) identify as an asset of the Trust. Bottom line: The concerns I outlined, supra, remain valid until the PUBLIC has a clearer picture. Ashton O’Dwyer.
Doug, given there is a bit of Louisiana public interest involved, directly through state involvement and indirectly through public good by way of economic development, the Red Stick kleptos would have a sound, constitutional right to cause public hearings to at least get a straight story in order to formulate legislative action (and thereby avoid Article III/Article V conflict under the state constititution.) But given the abject failure to do so with respect to direct interest issues in the past such as private interests in public revenue sources, good luck with that.
I would love La. State Treasurer Kennedy, a true Rhodes scholar who does not want to be President and who has done a superlative job saving /solving La’s. budget woes , to investigate this weird family feud as per da’ Empire’s post above .
Despite what has been written in the media any I.O.U involving the ‘ little cheaper dealer ‘ has a potential to affect the Saints’ contract with the State. Especially with the daughter and grand daughter wanting a piece of the Saints to control.
This is not Christmas.. The Saints is not a toy to play with, tinker with cuz it is a Cinderella team recued by a humanitarian QB and his coach andpassionately supported by the La. taxpayers and millions of other fans worldwide.
To all the spoiled, ingrate plaintiffs I say go play with all your other Texas, materialistic toys but better
LEAVE THE SAINTS ALONE !!!!!
Issue in Texas is Trust of Benson’s previous wife Shirley and value of substituted assets. Benson has offered additional substituted assets in the use of Saints, Pelicans, etc as collateral for the note used as the substituted asset. The question of Saints/Pelicans ownership will reside in New Orleans where heirs will have to demonstrate Benson is incapable of managing his affairs; this will be much more difficult than the appointment of the “assistant managers” in San Antonio because the trust in San Antonio is by his deceased previous spouse. It is not up to Benson to prove he is capable but up to heirs to prove he is not. Obviously, if they fail he will likely gut their inheritance to the maximum extent he can.
Reply to chmba:
You stated ‘ Benson wants to issue a Note as a substituted asset and use the Saint/Pelicans teams as collateral on Note’
That’s what is so troubling is the use in any way by Benson of the Saints team to provide for a Trust inheritance. Trusts can be liquidated and converted to equivalent cash asset. Meaning the Saints could be forced into a sale state for cash to be divided between heirs.
And If the ‘little cheaper car dealer’ slips on the eternal banana peel and goes to the junk yard in heaven the drama intensifies greatly without the heirs having to prove mental incompetency.
The La. State contract I’m sure has a penalty for Benson/ Benson heirs to pay for his/his heirs selling the Saints which penalty is a drop in the bucket when Los Angeles and San Antonio will pay out the wazoo of a BILLION or more for a NFL team. The NFL and owners would have to approve the sale but would they object to the Saints sale to the giant capitalistic market as Los Angeles would provide?
Judge Kern Reese of NOLA Civil District Court has ordered the’ little cheaper dealer’ to undergo a series of mental evaluations by a panel of three physicians for mental competency.
Who cares dat he doesn’t know who bees da’ President of da’ U.S. ( its best dat he doesn’t) just dat he knows who #9 and #80 of da’ Saints bees and bees strong enough to be able to squeeze the politicians for mo’ and mo’ CONcessions so da’ Saints stay in NOLA.
Tommie boy lets getts da’ coconut oil melted to grow some brain cells, hire some elementary teachers and burn da’ midnite oil so yo’ can pass some tests. And Saints fans just in case get ready to prepare some mini-micro, cheat sheets for Tommie boy.