Doctor dies from Covid-19 leaves family collection worth $20 mill

[rdwyer]

https://www.cnn.com/2021/05/20/us/ne...rnd/index.html

[ullmandds]

WOW!!! Theres maybe 7 mill right there!!!

[philliesphan]

Originally Posted by ullmandds

WOW!!! Theres maybe 7 mill right there!!!

Thickest borders I've ever seen on a '33 Goudey Ruth

/s

[mrreality68]

That is going to be a high flying Auction with some top dollars

[insidethewrapper]

What a collection ! This is what we talk about on here all the time. Again a tax discussion . Does the wife inherit the collection at current market value and therefore doesn't pay any taxes on the sales or does the estate pay taxes between the current market sale value (auction result) minus the initial price paid for the cards.

[rdwyer]

If everyone here puts me in their will, 20 milllion will be nothing. Hint. Hint.

[Papa Stephano]

Incredible...

I should have been a doctor.

[FrankWakefield]

Seems like he was a good fellow; someone who'll be missed by his wife, kids, and family. And co-workers and patients. Guys, it really isn't all about the cards. I hope the sale goes well for his family.

[BobC]

Originally Posted by insidethewrapper

What a collection ! This is what we talk about on here all the time. Again a tax discussion . Does the wife inherit the collection at current market value and therefore doesn't pay any taxes on the sales or does the estate pay taxes between the current market sale value (auction result) minus the initial price paid for the cards.

Under the current estate tax laws in place, there is still a basis step-up for inherited assets. To fully answer your question though we would need to know if he had a will, to whom were the cards left under the will, and if the cards were considered as owned solely by the doctor, or jointly by both him and his wife.

As it is now, all the assets he personally owned, and half of the assets he owned jointly with his wife, get valued at their current fair market value (FMV) on the date he dies, or an alternative date within six months after he passes if so elected by whoever is in charge of the estate. The total FMV of those is then used to determine if he has a taxable estate for federal estate tax purposes. If he leaves everything to his wife, there is no federal estate tax due as you are allowed an unlimited exemption from federal estate tax for everything left to a surviving spouse. Plus the spouse gets a step-up in the basis of all the assets she receives to their FMV.

So if the doctor was considered the sole owner of all the cards, and left them all to his wife, she gets the estimated $20MM FMV as her basis. So if she then sells them for $20MM, she has no gain to pay income tax on. Now if it was considered that she owned the cards equally with her husband, his half would be stepped-up to a $10MM basis and her half would be 50% of whatever her and her husband had originally paid for them. So in this case if she sold the cards for $20MM she would likely end up paying some capital gain tax, but we'd need to know their original basis in the cards to know how much gain would be taxable. (If they lived in a community property state the cards would be stepped-up 100% to the $20MM FMV regardless if originally acquired jointly or separately by the couple.)

And if some/all of the cards are left to people besides his wife, they get the stepped-up basis on whichever cards they inherit as well.

Now as for whether or not there is a federal estate tax on the value of the cards, as I already said, if he leaves them all to his wife, then no. But if he leaves some/all the cards to other people/relatives, there could end up being some federal estate tax due, but we'd have to at least know the FMV of all the other assets in his total estate, and how much went to his wife, and how much went to others, and so on.

And so you know, these estate tax laws are being looked at for significant changes in the very near future. So far just talk, discussions, and speculation. You can do online searches to see how some people think these federal estate tax laws may end up being changed. And also, this is just referring to federal estate taxes. There are a number of states that also impose an estate tax as well, which I'm not even going to try and get into.

[benjulmag]

Originally Posted by FrankWakefield

Seems like he was a good fellow; someone who'll be missed by his wife, kids, and family. And co-workers and patients. Guys, it really isn't all about the cards. I hope the sale goes well for his family.

+1

[rjackson44]

Covid sucks sad

[kaddyshack]

In the early 1990s, I was at the Anaheim National with another dealer from VA. I sold a Cy Young T3 to a doctor from FL. The Turkey Red was from the Southern Card find. It probably would have graded Ex-Mt or better. I am not 100% certain that he is the same guy that I sold the T3 to, but he does look some what familiar (looking at the Memory Lane website). I remember that he dragged Bill Hughes over to my table to examine the Cy Young. After getting the blessing from Bill, the doctor paid me in AMEX traveler checks ($50 checks). I think my asking price was around $1800 ?

[bobbyw8469]

I bet all the members here have enough value in our collections to pay off the National debt.

[chriskim]

Wow.. that Ruth!! I will pay it with trimmed dollar bills!

[benjulmag]

Originally Posted by kaddyshack

In the early 1990s, I was at the Anaheim National with another dealer from VA. I sold a Cy Young T3 to a doctor from FL. The Turkey Red was from the Southern Card find. It probably would have graded Ex-Mt or better. I am not 100% certain that he is the same guy that I sold the T3 to, but he does look some what familiar (looking at the Memory Lane website). I remember that he dragged Bill Hughes over to my table to examine the Cy Young. After getting the blessing from Bill, the doctor paid me in AMEX traveler checks ($50 checks). I think my asking price was around $1800 ?

Funny you say that Roy because I was at that same National and thinking the same thing about the Goudey Ruths. Some dealer had all four and they all looked stone mint, and I often thought back to that day and regret I did not buy them. It wouldn't surprise me if those are the Ruths the estate is selling.

[kaddyshack]

Corey, that Anaheim National was my 2nd one (first one was in AC). Anyhow, it was really packed with collectors. I believe this particular National started all the promo stuff. I could not believe the line for getting a free Shaq autograph ? He was sponsored by Classic or Upper Deck, and I think he only stayed for a couple of hours. I went to the shorter lines (Gayle Sayers, Oscar Robertson, and Kyle Petty). I'm sure you remember some of the hysteria at that show....

Funny you should mention all the mint Goudey Ruths, I walked by Mastro's booth and saw so much vintage Mint stuff that it seemed like I was in a museum.

[Robert_Lifson]

Originally Posted by kaddyshack

In the early 1990s, I was at the Anaheim National with another dealer from VA. I sold a Cy Young T3 to a doctor from FL. The Turkey Red was from the Southern Card find. It probably would have graded Ex-Mt or better. I am not 100% certain that he is the same guy that I sold the T3 to, but he does look some what familiar (looking at the Memory Lane website). I remember that he dragged Bill Hughes over to my table to examine the Cy Young. After getting the blessing from Bill, the doctor paid me in AMEX traveler checks ($50 checks). I think my asking price was around $1800 ?

Roy, this was definitely the same guy. “Doc Newman” (that’s what so many called him) did a lot of business with Bill Hughes in that era and often asked his advice buying cards.

[kaddyshack]

Wow Robert, that's really neat. I never met Bill Hughes before. I would see his ads in SCD. My perception was that he would have the same personality as Al Rosen. That was not the case. Thanks for the info Robert.

[marzoumanian]

I have found Rob to be a man of truly incredible hobby knowledge and, as evidenced here, he has an amazing memory. Not to mention great integrity. He should write a book about his many hobby experiences AND I have told him that. But I understand why he would prefer to enjoy his family and his current lifestyle. Thank you, Rob, for your many contributions.
P.S. I was NOT paid to say this!
Peace.

[Usc1]

Cool article. thanks for posting.

[jingram058]

When I saw this story break on CNN yesterday, I knew it would be only a matter of time before it would be talked about here. Sure enough, that is the case. But more importantly, there is enough big-time hobby expertise here, that, as Paul Harvey used to say, "Now, the rest of the story..."

[jbsports33]

Had to show my family this article, just in case I find a Million dollar card!

Wow! Covid-19 does still suck though

Jimmy

[jayshum]

The collection is listed in a new Memory Lane Auction that opens later this week. Some amazing looking cards.

[Arazi4442]

Preview is open now and it is mind blowing

[YazFenway08]

I once commented to another Net54er that, based on all the cards and collections I have seen on these Boards, my collection is in the "C/C- " range.

What I just perused of Dr. Newman's collection on the Memory Lane site just destroyed the grading curve...

just really fantastic...and by all accounts he really enjoyed collecting it and sharing it

[VintageBen]

omgggggg... the only thing that I saw that was an error was lot #89, a novelty cutlery PC805 Walter Johns(t)on being listed as a PC796.

i can't wait to see these prices.

[the 'stache]

I'm only on page two, and I'm floored. His Turkey Red collection was ridiculous.

I certainly feel for his family (and yes, Covid sucks. One of my best friends lost his father, and his fiancee lost her father, as well), and it's clear he was loved and respected.

A lot of people will see dollar signs with these cards. I see a man that pursued his passion, and pursued it with patience and great care. His was a life well-lived.

[chadeast]

The quality of his collection is astounding. The opening bids are even more astounding. I love how only $100k opening bids or higher are moved up to the top #'d lots. There are lots in the middle of the auction that would headline most other auctions, like...

N162 Anson PSA 8 - Opening bid $25k, ho hum
Cobb Green portrait SGC 7.5, also $25k
1914 CJ Jackson PSA 4, only $25k opening bid
1933 Goudey Ruth #149 PSA 7, another $25k
a beautiful 34 Goudey #37 Gehrig PSA 7, opening bid just $5k

& so many more. It's almost overwhelming just to go through the auction listings, I had to take a break! And I agree with 'stache, this auction stands as a virtual monument to Dr. Newman's passion.

[Peter_Spaeth]

I prefer my Green Ruths with more border.