Sumner Redstone might not be a household name, but he is one of the most important media moguls in the United States. Redstone controls approximately 80 percent of the voting stock in CBS and Viacom. Because of that many people are interested in the details of his estate plan and what will happen to the companies after he passes away.
Recently it was reported that after 91-year-old Sumner Redstone passes away his daughter will take over as chairwoman of CBS and Viacom. The report appears to have been in error as Redstone’s publicist claims that who will take over leadership of the companies has not been decided and will be determined by the directors of the companies.
Additionally, Redstone’s estate will be placed into the hands of a seven member trust and plans are in place to ensure that no stock in the companies will need to be sold to pay estate taxes.
How the latter is to be accomplished is being kept private.
Bloomberg Business reported the story in an article titled “Redstone Says Trustees to Oversee Estate After Death.”
The normal advice is that succession plans for businesses should be clearer about exactly who will take over the business when the current person passes away.
This makes it possible for the successor to be known and to begin taking on responsibility while the current CEO is around to assist. That helps to ensure a smooth succession.
However, that advice normally applies to small and family businesses. In the case of major corporations with third party directors, it is not as necessary.
Family business owners should not structure their estate and succession plans as Redstone has done without the advice of an attorney. However, in this case, it appears Mr. Redstone has not necessarily made a mistake.
Reference: Bloomberg Business (May 7, 2015) “Redstone Says Trustees to Oversee Estate After Death.”
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.
Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!
I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!