The recent lawsuit filed by the wife of the late San Diego Padres owner, Peter Seidler, reinforces the importance of comprehensive estate planning, especially when substantial business assets are involved. Seidler, who passed away in November 2023, had been the owner of the Padres organization since 2013 and his widow, Sheel Seidler, is now seeking to be named the sole beneficiary of the Seidler Trust, which owns a significant share of the franchise.

At the heart of the lawsuit is a dispute over control and decision-making authority within the Padres’ ownership structure and the Seidler Trust. Mrs. Seidler claims that her husband’s wishes are not being honored, as she was allegedly meant to have a large role in the team’s operations according to a handwritten note from Peter. She feels that the brothers have ostracized her and her three children and are undermining Peter’s legacy. 

This situation could have been avoided with clear and legally enforceable succession planning, which would have outlined who would take over business operations and in what capacity.

For business owners, having a well-defined succession plan is crucial to ensure continuity and minimize disputes among heirs and business partners. 

A comprehensive plan should address:

• Ownership transition: Clearly specifying who will inherit business interests and under what conditions.
• Decision-making authority: Establishing roles and responsibilities for key stakeholders.
• Buy-sell agreements: These can dictate terms under which shares of a business can be transferred or sold to prevent internal conflicts.

Another lesson from the Seidler dispute is the importance of open communication between family members and business partners. Regular discussions about the plan could have helped clarify expectations and ensure that all parties were on the same page. Transparency can reduce the likelihood of conflicts and legal battles.

Life circumstances, business dynamics, and tax laws change over time and it’s essential to periodically review and update estate planning documents to reflect these changes. Failure to do so may lead to outdated provisions that do not align with current wishes or business realities. A well-structured estate plan, backed by clear legal documentation and open communication, is essential to ensure that one’s legacy is preserved and that family members are protected from unnecessary disputes. 

At The Estate Planning & Legacy Law Center, we specialize in helping business owners create comprehensive estate plans tailored to their unique needs. Contact us today to ensure your assets and business interests are secure for future generations.