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Joe Paterno Turned Home Over last July to Wife for $1

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edbermac Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 09:27 PM
Original message
Joe Paterno Turned Home Over last July to Wife for $1
STATE COLLEGE, Pa. Joe Paterno transferred full ownership of his house to his wife, Sue, for $1 in July, less than four months before a sexual abuse scandal engulfed his Penn State football program and the university.

Documents filed in Centre County, Pa., show that on July 21, Paternos house near campus was turned over to Suzanne P. Paterno, trustee for a dollar plus love and affection. The couple had previously held joint ownership of the house, which they bought in 1969 for $58,000.

According to documents filed with the county, the houses fair-market value was listed at $594,484.40. Wick Sollers, a lawyer for Paterno, said in an e-mail that the Paternos had been engaged in a multiyear estate planning program, and the transfer was simply one element of that plan. He said it had nothing to do with the scandal.

http://www.nytimes.com/2011/11/16/sports/ncaafootball/in-july-paterno-transferred-ownership-of-home-to-his-wife-for-1.html

Hmmm...now why would he do that 4 months ago?:shrug:
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maddezmom Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 09:29 PM
Response to Original message
1. this is very common for people with trusts, it's a way to divide assets
to lower tax liability.
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godai Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 09:41 PM
Response to Reply #1
3. According to the article, this is unusual. n/t
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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 11:27 PM
Response to Reply #3
6. Per one lawyer consulted, not others who were also cited
To me the key items were his personal attorney saying it was part of a multiyear estate planning program, and the transfer was simply one element of that plan.

The other part was "It appears the family house had been the subject of years of complex and confusing transactions. "

It seems the most probable given his age.
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godai Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 07:46 AM
Response to Reply #6
12. House would go to spouse without any transfer.
The transfer is likely one of many from Joe Paterno to various family members. He will be sued, not the family members.

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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 09:25 AM
Response to Reply #12
16. That which works for estate planning also works for asset protection
The goal is to minimize the estate
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hifiguy Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 10:23 AM
Response to Reply #16
19. Correct
There's nothing particularly unusual about an 84-year-old man doing this.
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godai Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 11:08 AM
Response to Reply #19
21. What happens if his wife dies first? n/t
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TBF Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-17-11 06:11 PM
Response to Reply #21
24. The trust will usually spell that out.
In the case of my in-laws they are alive but having health problems. My husband has taken over the trust, if he is unable or unwilling to oversee it his sister takes over. Provisions are very clear on how remaining assets are to be divided.

Estate planning is common for elderly couples with assets, but the $1 transfer to his wife seems odd. Looks like he's sheltering assets there.
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rurallib Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 10:47 PM
Response to Reply #1
4. timing is quite interesting.
they have had years to do this. If it were for taxes I would bet Joe was getting all sorts of advice to do this long ago.
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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 11:29 PM
Response to Reply #4
9. From the article:
"Experts in estate planning and tax law, in interviews, cautioned that it would be hard to determine the Paternos motivation simply from the available documents. It appears the family house had been the subject of years of complex and confusing transactions. "

I take that to mean there have been tax moves going on for some time now.
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Gormy Cuss Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 11:17 AM
Response to Reply #1
22. Exactly, especially with people who are as wealthy as the Paternos.
Anything and everything that can be done to move assets to the next generation without paying estate taxes will be done. For most people, the estate tax is irrelevant or affects only a modest portion of the estate. For the wealthy there is a lot of value at stake.

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Spazito Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 09:33 PM
Response to Original message
2. The timing is....interesting....
He had better have proof this had been in the works and part of a "multiyear estate planning program" and not something else.
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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 11:27 PM
Response to Reply #2
7. It won't take much to do that.
Edited on Tue Nov-15-11 11:30 PM by ProgressiveProfessor
From the article:

Experts in estate planning and tax law, in interviews, cautioned that it would be hard to determine the Paternos motivation simply from the available documents. It appears the family house had been the subject of years of complex and confusing transactions.

This could also be year one and it was the first move. To "prove" that all it would take is the attorney saying so under oath.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 11:21 PM
Response to Original message
5. $58K in '69 in State College? Must be quite a nice house!
But retitling property into a trust is a common estate tax planning move. Notice that she is no longer a joint owner, but is now a trustee, probably with the right to live in and enjoy the property that passes automatically in the trust to someone else upon her death.
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alcibiades_mystery Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 07:56 AM
Response to Reply #5
14. It's a modest ranch house
It just happens to be close to campus on the residential side.

I think you'd be shocked to see it.
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deaniac21 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 09:56 AM
Response to Reply #14
17. Fair market value $594,484.40

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alcibiades_mystery Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 10:15 AM
Response to Reply #17
18. Right
Check the neighborhood comps.

;-)
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deaniac21 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-17-11 06:06 PM
Response to Reply #18
23. That is what the New York Times reported in the article.
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Ruby the Liberal Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 11:00 AM
Response to Reply #17
20. Whoa. Thats what $600k gets next to campus?
Mind boggling.
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nessa Donating Member (141 posts) Send PM | Profile | Ignore Tue Nov-15-11 11:28 PM
Response to Original message
8. If the house was jointly held before, it's not likely it could be ...
seized to satisfy any judgment that may be brought against Joe Paterno alone.

Actually, I think in most cases a home that the person is living in is generally exempt under state homestead laws.

It seems unlikely that this move was related to the scandal.
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jberryhill Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 12:32 AM
Response to Reply #8
11. Plus the headline is misleading

The house was sold to a trust, not to her personally.
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rufus dog Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-15-11 11:32 PM
Response to Original message
10. The normal way to do it would be to place it in a Joint trust
That way the surviving Spouse is covered. In this case he took himself off of ownership, transferring title to his wife, so if she dies first then he would be subject to taxes.
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Kingofalldems Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 07:51 AM
Response to Original message
13. Joe Paterno and Sandusky are both republicans
Edited on Wed Nov-16-11 07:52 AM by Kingofalldems
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Bunny Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-11 08:01 AM
Response to Reply #13
15. So is my mother.
What's your point?
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