Bloomberg has reported that Worldwide Wrestling Entertainment CEO and majority owner Vince McMahon has sold 1.55 million shares worth $32.5 million in its report “WWE CEO Vince McMahon Sells 1.55 Million Shares in Estate Move.”
According to regulatory filings, the stock sale was done as an estate planning move. As McMahon’s overall estate plan is not a matter of the public record, we can only speculate on the exact purpose of the move.
Quite often, these moves are done for a number of different reasons.
The cash might be used to pay an anticipated estate tax bill. This could also be done to equalize the inheritances for different heirs. It could also be done to have the cash available for a trust that is to be created for charitable or other purposes.
An important takeaway to keep in mind is that McMahon’s stock sale illustrates that when making estate plans you are not limited to what you can do with your assets. You can adjust them as necessary to make your plan more effective.
Reference: Bloomberg (Aug. 17, 2016) “WWE CEO Vince McMahon Sells 1.55 Million Shares in Estate Move.”