What it can teach the wealthy about trusts
CNBC • • sports
Key Points:
- The Buss family, heirs to the Los Angeles Lakers, are divided over selling their $12.5 billion stake, with five siblings favoring a sale and sister Jeanie Buss opposing it to maintain her role as team governor.
- The family trust includes a "last man standing" clause that transfers a deceased sibling's equity to surviving siblings, encouraging a sale during their lifetimes but causing internal conflict.
- Estate attorneys suggest using life insurance policies to compensate descendants who lose equity due to such clauses, helping to balance family interests without fragmenting ownership.
- Experts recommend limiting decision-making power to one or two children best suited to run the business, rather than equal voting among all siblings, to avoid detrimental disputes and ensure smoother management.
- Some attorneys advise keeping family members out of day-to-day business management altogether to prevent conflicts, though this strategy may not suit high-profile assets like the Lakers.
