Minnesota Twins Ownership Tangled in IRS Estate Tax Debate

In early 2009, Carl Pohlad, investor and principle owner of the Minnesota Twins, passed away, leaving controlling ownership of the team to his sons.  In settling the estate, the new owners now find themselves embroiled in a tax tangle with the IRS.  The primary point of contention exists with what Pohlad’s share in the team was actually worth at the time of death.  According to the IRS, Pohlad’s ownership is valued at $293 million and is demanding $121 million in additional estate taxes.  The estate contests that upon Pohlad’s death, which was shortly after the economic crisis of 2008, the value was much closer to $24 million.  Many lessons in estate planning can be gleaned, as the plot continues to unfold.  You can learn more about it in Lee Schafer’s column with Minnesota’s Star Tribune.

In a limited liability company like Minnesota Twins LLC, the managing member is in charge, and usually has authority to borrow money, hire and fire employees and take other actions that the non-managing members have no right to do. But Carl Pohlad owned only 10 percent of Twins Sports’ voting shares, with the rest equally split between Jim and his two brothers.