Peter Valente recently commented on the implications of the federal estate tax on George Steinbrenner's will in the New York Post.

Mr. Steinbrenner's will stipulates that an undisclosed portion of his estimated $1.1 billion sports, shipping and racehorse-breeding fortune will go into a trust for his widow.  It also states that the bulk of his assets goes into a trust.  Mr. Steinbrenner's four children will act as the estate's executors and cannot sell stakes in the Yankees or other assets without a majority vote of trustees.

The decision whether the trust pays federal estate tax for this year or not until after Mrs. Steinbrenner's death is left up to Robert Banker, Mr. Steinbrenner's attorney.

Although there is currently no federal estate tax for 2010, that could change in Congress acts to close the loophole and enacts such a tax retroactively.

Under the law, Mr. Banker would have nine months from Mr. Steinbrenner's death to decide if the estate should pay estimated estate tax for a 2010 filing - or at the rate in effect whenever Mrs. Steinbrenner dies.  Mr. Banker can take another six months before deciding to make that decision permanent.

"That would give him maximum flexibility to deal with the estate tax," said Mr. Valente.  "They have a lot of time to deal with this."

Mr. Valente said that because Mr. Banker will not have to decide until after Congress acts - or fails to act - on the estate-tax question, he will have a clearer picture of what each scenario would cost The Boss' estate.

If Congress never acts to close that loophole, then there would be no estate tax ever owed by the beneficiaries.

Mr. Valente said it's possible that the marital trust will include the overwhelming bulk of his estate because it would give the estate the most flexibility for dealing with the estate-tax question.

"The Boss' Will Power" appeared in the July 28, 2010 issue of the New York Post. For more information, visit http://www.nypost.com/