Parents/in-laws paying estate tax to avoid giving while alive

[Anonymous]

Anonymous wrote:

Anonymous wrote:They have over $14m and you’re complaining? Seriously?

Well over. And they have no plan to do anything about it if the law reverts back. And they hate taxes and big government! But god forbid they put $18k a year in a fund for their grandchildren.

We don’t need the money - we and DH’s two siblings are very successfully employed, a fact that seems to turn my MIL green with envy. She is constantly making snide remarks about it.

I'm calling troll.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What about a revocable trust? Does it confer tax benefits but the owner (ie, elderly parent) can still take out some money if they need it?

Why? To get under the estate tax cap that it could revert back to in a couple years, you only have to get assets under $13M (6.5 per person.) That doesn’t put anyone in danger of running out of money. Especially not people with a paid off home and long term care insurance.

If you are worried about estate taxes, you most likely are not paying for LTC insurance, unless you got in on one that will pay indefinitely (but those didn't exist for very long and many are out of business due to the costs and won't pay out when you need it).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought we wanted the rich to pay their fair share. What do you want OP? For the rich to not pay up? Are you that greedy?

The rich pay plenty. Leaving that aside, estate taxes are absurd because it’s money that was already taxed. People should be able to do what they want with it, tax free.

+1000

Someone called it a "transfer tax" and all money is taxed when it's transferred. I think that's ridiculous. We earned the money and paid massive taxes on it, why should it be taxed justbecause we give it to our kids or grandkids.

Smart people do find legal ways with trusts and gifting while still alive to avoid estate taxes.

Sick of this dumb argument. When you die, you’re not paying taxes on it. You’re dead. Your children are paying taxes on their new income, as they should.

Then why are gifts taxed over 17k annually?

[Anonymous]

So incredibly weird that you would be giving this a thought. I would absolutely not be your friend, as you seem like a horrible greedy person.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What about a revocable trust? Does it confer tax benefits but the owner (ie, elderly parent) can still take out some money if they need it?

Why? To get under the estate tax cap that it could revert back to in a couple years, you only have to get assets under $13M (6.5 per person.) That doesn’t put anyone in danger of running out of money. Especially not people with a paid off home and long term care insurance.

If you are worried about estate taxes, you most likely are not paying for LTC insurance, unless you got in on one that will pay indefinitely (but those didn't exist for very long and many are out of business due to the costs and won't pay out when you need it).

OP here. In-laws actually DO have one of these that also has a crazy high COLA. Also, not a troll at all. This is our real actual story.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Oh for heaven's sake OP. If you are so financially successful that your ILs, who you predict will end up owing estate tax, are jealous, then why do you even care? If you ae that rich, then an 18k per year gift to your kids isn't going to make a difference in the grand scheme of things. MYOB. You are obsessing and acting pretty disgusting.

It’s the waste of it! We are going to get the money when they die either way. Why pay multiple millions in estate tax if you don’t have to? I’m not saying they give us “all” the money early, just enough to avoid the tax. This is so out of character for them considering all the other things they do to minimize taxes. They are so resentful of paying the Medicare supplement, etc. But they are willing to give Uncle Sam all this money they don’t have to?

NP. Eh, I’d say it sounds like the government will do better things with it than you. Your attitude is awful.

I suspect you’d be furious if they took it all and routed it into a charity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought we wanted the rich to pay their fair share. What do you want OP? For the rich to not pay up? Are you that greedy?

The rich pay plenty. Leaving that aside, estate taxes are absurd because it’s money that was already taxed. People should be able to do what they want with it, tax free.

+1000

Someone called it a "transfer tax" and all money is taxed when it's transferred. I think that's ridiculous. We earned the money and paid massive taxes on it, why should it be taxed justbecause we give it to our kids or grandkids.

Smart people do find legal ways with trusts and gifting while still alive to avoid estate taxes.

Sick of this dumb argument. When you die, you’re not paying taxes on it. You’re dead. Your children are paying taxes on their new income, as they should.

Except there are tons is legal ways to circumvent paying any tax on your estate, which smart people avail themselves of. Don’t hate the player hate the game.

The fact that people can and do circumvent the policy does not mean that the policy is wrong. Obviously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought we wanted the rich to pay their fair share. What do you want OP? For the rich to not pay up? Are you that greedy?

The rich pay plenty. Leaving that aside, estate taxes are absurd because it’s money that was already taxed. People should be able to do what they want with it, tax free.

+1000

Someone called it a "transfer tax" and all money is taxed when it's transferred. I think that's ridiculous. We earned the money and paid massive taxes on it, why should it be taxed justbecause we give it to our kids or grandkids.

Smart people do find legal ways with trusts and gifting while still alive to avoid estate taxes.

Sick of this dumb argument. When you die, you’re not paying taxes on it. You’re dead. Your children are paying taxes on their new income, as they should.

Obviously, you don't have a High enough net worth for this to be an issue, so of course you would think "it's dumb argument". Firstly, it's taxed at a higher rate than income would be, so it's not actually being treated as income (my state has no income tax, so 20% tax is much higher than income tax and 40% is higher than any federal tax bracket).

Thankfully there are still plenty of legal methods of avoiding estate taxes, and most for whom it's an issue will take measures to protect the money from the goverment. Already paid 37% taxes on majority of our wealth as we made it, will certainly pass it onto our kids and grandkids without them having to pay 20-60% on a good portion of it.

You’re correct, I’m one of the non-elite poors of society who has to actually work for my money and pay taxes to contribute to our country. So forgive me that I don’t have a single sh!t to give about some whiny rich brat complaining that they’re expected to contribute a little to a society which disproportionately rewards them having wealthy parents, but otherwise being completely and utterly worthless.

[Anonymous]

Is OP complaining that their rich in-laws are not giving them money NOW instead of after they die?

WwWwWoOoOoOoWwWwWw that's a lot of nerve.

I mean, if you legitimately need or really want money for a downpayment or private school or something that you can't otherwise afford, by all means, ask your rich in-laws. But to complain about their estate decisions and gripe about their choices that you will inevitably benefit from? Christ!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought we wanted the rich to pay their fair share. What do you want OP? For the rich to not pay up? Are you that greedy?

The rich pay plenty. Leaving that aside, estate taxes are absurd because it’s money that was already taxed. People should be able to do what they want with it, tax free.

+1000

Someone called it a "transfer tax" and all money is taxed when it's transferred. I think that's ridiculous. We earned the money and paid massive taxes on it, why should it be taxed justbecause we give it to our kids or grandkids.

Smart people do find legal ways with trusts and gifting while still alive to avoid estate taxes.

Sick of this dumb argument. When you die, you’re not paying taxes on it. You’re dead. Your children are paying taxes on their new income, as they should.

Then why are gifts taxed over 17k annually?

They are NOT taxed until you die as part of your estate. You just have to record any gifts over the $18K per person/from person limit each year and it is ultimately deducted from your estate

Also, IMO I should be able to gift my kids and grandkids as much as I want. They are family. But there are ways around it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What about a revocable trust? Does it confer tax benefits but the owner (ie, elderly parent) can still take out some money if they need it?

Why? To get under the estate tax cap that it could revert back to in a couple years, you only have to get assets under $13M (6.5 per person.) That doesn’t put anyone in danger of running out of money. Especially not people with a paid off home and long term care insurance.

If you are worried about estate taxes, you most likely are not paying for LTC insurance, unless you got in on one that will pay indefinitely (but those didn't exist for very long and many are out of business due to the costs and won't pay out when you need it).

OP here. In-laws actually DO have one of these that also has a crazy high COLA. Also, not a troll at all. This is our real actual story.

Good for them. However, I wouldn't rely completely on the LTC policy being solvent when you need them to pay out. Many many of them have gone under. There's a reason nobody sells them anymore, it's not financially good plan for the company now that people live past 66/67

[Anonymous]

Have you seen the will? They might not be concerned about it because they are giving a big chunk of it to charity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought we wanted the rich to pay their fair share. What do you want OP? For the rich to not pay up? Are you that greedy?

The rich pay plenty. Leaving that aside, estate taxes are absurd because it’s money that was already taxed. People should be able to do what they want with it, tax free.

+1000

Someone called it a "transfer tax" and all money is taxed when it's transferred. I think that's ridiculous. We earned the money and paid massive taxes on it, why should it be taxed justbecause we give it to our kids or grandkids.

Smart people do find legal ways with trusts and gifting while still alive to avoid estate taxes.

Sick of this dumb argument. When you die, you’re not paying taxes on it. You’re dead. Your children are paying taxes on their new income, as they should.

Obviously, you don't have a High enough net worth for this to be an issue, so of course you would think "it's dumb argument". Firstly, it's taxed at a higher rate than income would be, so it's not actually being treated as income (my state has no income tax, so 20% tax is much higher than income tax and 40% is higher than any federal tax bracket).

Thankfully there are still plenty of legal methods of avoiding estate taxes, and most for whom it's an issue will take measures to protect the money from the goverment. Already paid 37% taxes on majority of our wealth as we made it, will certainly pass it onto our kids and grandkids without them having to pay 20-60% on a good portion of it.

You’re correct, I’m one of the non-elite poors of society who has to actually work for my money and pay taxes to contribute to our country. So forgive me that I don’t have a single sh!t to give about some whiny rich brat complaining that they’re expected to contribute a little to a society which disproportionately rewards them having wealthy parents, but otherwise being completely and utterly worthless.

I've paid more in State income taxes in a single year (multiple times) than you most likely will ever make in your lifetime. I actually had to work for my money and have paid millions in taxes to our country. And happily do so and vote Blue because I value our democracy and women's rights a bit more than I value having a few million more in my pocket.

My kids will inherit over $10M each, should we choose to give it to them, it will be done to legally avoid estate taxes (both at federal and state level). My kids also still work for the rest of their money and pay taxes fully on that, they contribute to society as much as anyone else. They hold a full time job and work 50+ hour weeks and work to build a career, budget and save. They don't have full access to that money now. They are not "completely and utterly worthless".

[Anonymous]

Anonymous wrote:So incredibly weird that you would be giving this a thought. I would absolutely not be your friend, as you seem like a horrible greedy person.

X100000. So gross.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought we wanted the rich to pay their fair share. What do you want OP? For the rich to not pay up? Are you that greedy?

The rich pay plenty. Leaving that aside, estate taxes are absurd because it’s money that was already taxed. People should be able to do what they want with it, tax free.

+1000

Someone called it a "transfer tax" and all money is taxed when it's transferred. I think that's ridiculous. We earned the money and paid massive taxes on it, why should it be taxed justbecause we give it to our kids or grandkids.

Smart people do find legal ways with trusts and gifting while still alive to avoid estate taxes.

Because in a democracy, the elected representatives get to make the rules and if you don’t like them you have to get other people elected to changes them.

You are free to give it to tax exempt organizations, spend it, or burn it. But if you give it to individuals, including family, it’s taxable.