Elsewhere online
January 26, 2015

Tax Issues Cloud Future of Huguette Clark Arts Charity

The arts foundation established by the 2013 settlement of reclusive mining heiress Huguette Clark's $300-million estate might have to sell Bellosguardo, her Southern California mansion, if the Internal Revenue Service decides to collect millions of dollars in delinquent taxes, according to the Santa Barbara Independent.

People with knowledge of the situation tell the newspaper the future of the Santa Barbara mansion hinges on whether the IRS is willing to waive $16-million to $18-million in penalties on unpaid gift taxes because of the significant role of charities in the Clark settlement, including her prime beneficiary, the Bellosguardo Foundation. The foundation received the $85-million home as part of the September 2013 deal but got only $4.7-million in cash, as lawyer' fees and awards to distant relatives ate up much of the estate. Ms. Clark died in 2011 at the age of 104.