Joe Paterno's Estate Paid Three Million by Penn State - New York Estate Planning News

New York Estate Planning News - Find a NY Estate Attorney

Joe Paterno's Estate Paid Three Million by Penn State

Joe Paterno, the legendary Penn State football coach who died recently under a cloud cast by Jerry Sandusky’s child sex abuse allegations, left behind a pretty big estate which has been the topic of conversation on this blog previously.

Joe Paterno’s estate is bigger now and back in the news as Penn State just paid three million to it to cover various obligations, reports The Associated Press.

The payments were due under Paterno’s employment contract and included bonuses and revenues. In receiving the moneys apparently owed, the Paterno estate did not give away its right to potentially bring a suit down the road.

One very helpful part of the payment is that Paterno’s widow, Sue Paterno, will receive $1,000 a month from the school, along with on-campus parking, and access to hydrotherapy. The university also waived $350,000 in debts that Paterno owed; though no explanation was given for what the debts were for.

One wrinkle in the payment was that Paterno was supposed to receive three million if he retired at the end of last year; but instead of retiring, due to the Sandusky situation, he was actually removed as coach. So, had the trustees of Penn State wanted, they could have made an issue of it there. Then again, Paterno was responsible for bringing in millions of dollars to the university through decades of successful football seasons, so maybe everyone is willing to call it a wash.

As for the fact that Joe Paterno’s estate has tried to retained the right to sue, that might simply be prudent estate administration. Whenever a person dies, his or her estate needs to be collected and managed. Estate administration involves gathering the assets of the estate, paying the decedent’s debts, and distributing the remaining assets.

For more information on estate administration please see below.

Related Resources: