The Humiliating Bankruptcy of Famous Celebrities
Annie Leibovitz and the Financial Disasters of the Rich and Famous
Sep 8, 2009
Annie Leibovitz is arguably the most famous photographer in the world. Ask the average American to name their favorite photographer, and you will likely receive one of two answers: I don't know or Annie Leibovitz. She is the standard-bearer for her profession. In a career that has spanned four decades, her portraits have captured some of America's most famous personages in poses that have attained iconic status.
The Leibovitz Catalog Includes Photos of Celebrities and the Rich and Famous
She took the last professional photograph of John Lennon five hours before the late Beatle's brutal murder. Her controversial portraits of Demi Moore and Miley Cyrus, taken when the latter was only 15 years old, are still topics of heated conversation in certain circles. Her diverse clientele has included Willie Nelson, Angelina Jolie, Iggy Pop and Queen Elizabeth II. The collection she has amassed over the course of her professional life is valued in the tens of millions of dollars. Now, she is a court order away from losing control of it all.
The Disastrous Loan That Could Land the Famous Leibovitz in Bankruptcy Court
In the fall of 2008, Leibovitz borrowed $5 million from a company called Art Capital Group, and in December of the same year she borrowed another $10.5 million from the same company. Those close to the photographer said she used the hefty loan to pay off mortgages on a number of properties and deal with other financial difficulties that have plagued so many in the ongoing economic crisis. As collateral for these loans, she used a number of Greenwich Village townhouses she owns and the rights to all of her photographs.
In July of 2009, a breach of contract lawsuit against Leibovitz was filed in the amount of $24 million regarding the repayment of these loans. If Leibovitz cannot pay, Art Capital Group could end up owning her entire catalog. Some experts have stated that planned bankruptcy is Leibovitz's last and best option for maintaining control of her collection. The remaining acts of this drama will be played out in a series of state and federal courthouses over the next several months and possibly years.
The Estate Tax Could Result in the Bankruptcy of Annie Leibovitz
Over the past decade, Leibovitz has endured a series of personal tragedies, including the deaths of her parents and her longtime partner, famed writer Susan Sontag. One possible explanation for her dire financial situation is the exorbitant estate tax she was forced to pay on the numerous properties bequeathed to her by Sontag.
Federal estate tax laws assessed a penalty of nearly 50% of the value of these inherited assets. However, if this same situation were to arise in a heterosexual relationship, the taxes owed on those properties would have been zero. While it is emblematic of the current financial crisis, the plight of Annie Leibovitz is also one more example of the tragically inequitable state of legal safeguards for the protection of gay couples in America.
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