If you’ve recently joined The Sopranos binge-watching craze, then Tony Soprano might be at the forefront of your mind regarding anything related to money and your family. Please, don’t do anything illegal. Television’s infamous Mob boss spent all his life hiding from the government with the purpose of providing for his family. James Gandolfini, the actor behind Tony Soprano, failed to avoid the clutches of the IRS over his estate when he passed, leading to millions of dollars that were taken from the hands of his loved ones. Furthermore, Gandolfini’s wishes to leave property to his children were unfulfilled due to Italy’s inheritance laws. Learn from Gandolfini’s massive failure and ensure your estate is securely passed on to your family as Tony Soprano would do, legally of course.
James Gandolfini is best known for his performance as Tony Soprano in HBO’s hit television series, The Sopranos. He previously played minor roles in blockbuster films such as Crimson Tide and True Romance. His portrayal of Tony Soprano, the head of a fictional crime family, landed him recognition and fame as Hollywood’s cold-blooded Mob boss.
Gandolfini unexpectedly passed due to a massive heart attack in 2013 while travelling in Rome. Much like Tony Soprano, he had a family of his own, and was survived by his second wife, son, and daughter. In planning for the end of his life, Gandolfini created a will, wherein he divided his estate between multiple beneficiaries. In total, 80 percent of his estate was unprotected against estate taxes, with more than $30 million claimed by the IRS.
In Gandolfini’s will, there was a provision providing for the distribution of his Italian property to his two kids. However, under Italian inheritance laws, children are automatically given half and his wife a quarter, meaning he only had the right to give away the last quarter. Because of this, Gandolfini’s wishes to pass down his Italian property to his children was not met.
Numerous estate planning options exist that Gandolfini could have sought out to avoid the enormous tax burdens. Any of the options below could have saved his beneficiaries time and money, without the headache of court proceedings and tax claims.
Consider Foreign Laws
Depending upon the country, the nature of estate planning differs, especially in relation to property. When leaving assets located in foreign countries, consult with attorneys there to ensure that your possessions are properly passed on to your beneficiaries. Gandolfini left his children property he owned in Italy but failed to consult with an Italian attorney. Italy’s inheritance overrode his will and essentially rendered it useless.
Unlimited Marital Deduction
Under the U.S. Federal Estate and Gift Tax Law, an individual can transfer a specified amount of their assets to their spouse at any time, including at their death. Unlimited marital deduction allows surviving spouses to receive assets without the payment of an estate or gift tax. If Gandolfini would have taken advantage of marital deduction, he could have transferred a large portion of his assets to his most recent spouse tax-free.
Revocable Trust
A revocable trust is an estate planning document that can be altered over time by an individual. Once set up, an individual can place their assets in the trust, appoint a trustee to manage its distributions, and name specific beneficiaries. A revocable trust allows you to retain control of your assets until your death, avoid probate, preserve the privacy of information regarding your assets, and establish provisions that may help to reduce estate taxes. Unfortunately for Gandolfini, he failed to create a revocable trust, meaning the distribution of his assets was subject to probate, alongside public scrutiny.
Lessons to Learn
Unfortunately for James Gandolfini, his estate planning was a disaster, and has since received continuous public condemnation. He made mistakes that most people would know to avoid through simple research. Like Tony Soprano, Gandolfini cared for his family and wanted the best for them, but he failed to follow rather simple steps. Learn from his mistakes and secure the safety of your estate.
