The Poojer Posted December 3, 2009 Share Posted December 3, 2009 BreakingNews U.S. House of Representatives votes to permanently extend 45% inheritance tax on estates larger than $3.5 million - AP Link to comment Share on other sites More sharing options...
Captain Caveman Posted December 3, 2009 Share Posted December 3, 2009 It's not good. Link to comment Share on other sites More sharing options...
tomdayfan Posted December 3, 2009 Share Posted December 3, 2009 Regardless of the ramifications on the Bills, that is just a ridiculous, ridiculous tax. You work your entire life to create a substantial reserve to retire with, and leave to your family, and the Gov gets 45% fanfriggentastic Link to comment Share on other sites More sharing options...
tonyd19 Posted December 3, 2009 Share Posted December 3, 2009 I am the owner of an investment firm in Nevada. I am not shocked by this law extending, as there has been some form of the death tax in plac since 1871. It's a big money maker for the government, as well as the insurance and legal industries. But I will say, with proper estate planning techniques, most if not all of the loss to the government from a persons estate can be mitigated. We have a saying in the financial planning industry. When you die, your money can go to three places. 1) The Government. 2) Charity. 3) Your Family. We would like you to pick two. You can take a guess as to which two are primarily chosen! Bottom line is.... if Ralph's advisors and attorneys have done their job, this should not affect the Bills very much. Link to comment Share on other sites More sharing options...
loyal2dagame Posted December 3, 2009 Share Posted December 3, 2009 Regardless of the ramifications on the Bills, that is just a ridiculous, ridiculous tax. You work your entire life to create a substantial reserve to retire with, and leave to your family, and the Gov gets 45% fanfriggentastic agreed......time for a REVOLUTION......... Link to comment Share on other sites More sharing options...
benderbender Posted December 3, 2009 Share Posted December 3, 2009 bad news Link to comment Share on other sites More sharing options...
PromoTheRobot Posted December 3, 2009 Share Posted December 3, 2009 I am the owner of an investment firm in Nevada. I am not shocked by this law extending, as there has been some form of the death tax in plac since 1871. It's a big money maker for the government, as well as the insurance and legal industries. But I will say, with proper estate planning techniques, most if not all of the loss to the government from a persons estate can be mitigated. We have a saying in the financial planning industry. When you die, your money can go to three places. 1) The Government. 2) Charity. 3) Your Family. We would like you to pick two. You can take a guess as to which two are primarily chosen! Bottom line is.... if Ralph's advisors and attorneys have done their job, this should not affect the Bills very much. Here's another way...borrow against your assets...taxes = zero. PTR Link to comment Share on other sites More sharing options...
Malazan Posted December 3, 2009 Share Posted December 3, 2009 I like that so many people get upset about a law that doesn't affect them or most people...at all.. Link to comment Share on other sites More sharing options...
PromoTheRobot Posted December 3, 2009 Share Posted December 3, 2009 I like that so many people get upset about a law that doesn't affect them or most people...at all.. Other than how it affects Ralph Wilson and the Bills, you're right. PTR Link to comment Share on other sites More sharing options...
tonyd19 Posted December 3, 2009 Share Posted December 3, 2009 Here's another way...borrow against your assets...taxes = zero PTR Not a bad idea in theory, but a few things wrong with it. 1) You can't leverage 100% of the value of your assets. 2) You still own the asset and on your death the money you took out (at least the unspent part) wll still be part of your estate. So now you will owe death taxes on the money you took out, plus you will owe the creditors for the assets you took loans against. Your family will end up with even less than if the government got their hands on it. Link to comment Share on other sites More sharing options...
Dante Posted December 3, 2009 Share Posted December 3, 2009 Socialism has to be funded. Painful truth Link to comment Share on other sites More sharing options...
tonyd19 Posted December 3, 2009 Share Posted December 3, 2009 I like that so many people get upset about a law that doesn't affect them or most people...at all.. Yea..... nobody should be pissed about a law that robs people of half of the money they have spent a lifetime earning and have already paid taxes on.....I guess that's because the people affected are "rich" and deserve to be swindled by the government. I bet if they dropped the death tax down to people with estates of $10,000 or more.....than it would be wrong... Link to comment Share on other sites More sharing options...
Typical TBD Guy Posted December 3, 2009 Share Posted December 3, 2009 I like that so many people get upset about a law that doesn't affect them or most people...at all.. Hurray for tyranny of the majority! Link to comment Share on other sites More sharing options...
justnzane Posted December 3, 2009 Share Posted December 3, 2009 Socialism has to be funded. Painful truth painful truth... if our gov't cut all programs today, it would still require you to pay out the ass for tax considering our current debt built up by the previous administration. So, it isn't just "socialism" as you put it That said a death tax is bull **** on the basis of double taxing money (assuming that the person got the money legally) Link to comment Share on other sites More sharing options...
PromoTheRobot Posted December 3, 2009 Share Posted December 3, 2009 Not a bad idea in theory, but a few things wrong with it. 1) You can't leverage 100% of the value of your assets. 2) You still own the asset and on your death the money you took out (at least the unspent part) wll still be part of your estate. So now you will owe death taxes on the money you took out, plus you will owe the creditors for the assets you took loans against. Your family will end up with even less than if the government got their hands on it. Are you sure? If the asset is sold for debt there is nothing left to tax. PTR Link to comment Share on other sites More sharing options...
PromoTheRobot Posted December 3, 2009 Share Posted December 3, 2009 Socialism has to be funded. Painful truth If by "socialism" you mean wars, tax cuts for the wealthy, and pork projects...then yes, it does. PTR Link to comment Share on other sites More sharing options...
dave mcbride Posted December 3, 2009 Share Posted December 3, 2009 I like that so many people get upset about a law that doesn't affect them or most people...at all.. Exactly. Talk about false consciousness ... Link to comment Share on other sites More sharing options...
tonyd19 Posted December 3, 2009 Share Posted December 3, 2009 Are you sure? If the asset is sold for debt there is nothing left to tax. PTR That brings us back to the fact that you can't leverage 100% of the asset. So you take a loan out for say 80% of the value. You spend half of the money before you die. Now you estate is left with half the money you did not spend (which will be taxed) and the assets you hold with 20% equity. The assets are sold, and your estate is taxed on the 20% you still owe. You would be giving your assets to your creditors and still paying estate taxes on the portions you have retained. This would not make sense becuase if you wanted to not pay death taxes and did not care about leaving the assets to your family. you could just spend the assets prior to death or use some other estate planning techniques For example, you could put your assets in a Charitable Remainder Trust. You get paments every month on the value of the assets in the trust and when you die, the remaining assets go to a charity of your choice. Link to comment Share on other sites More sharing options...
Poeticlaw Posted December 3, 2009 Share Posted December 3, 2009 Regardless of the ramifications on the Bills, that is just a ridiculous, ridiculous tax. You work your entire life to create a substantial reserve to retire with, and leave to your family, and the Gov gets 45% fanfriggentastic 45% + the taxes alredy taxed on the original money probaly around 30-40% so really the rich is getting taxed 70-85% of the money over the lifetime of it. Link to comment Share on other sites More sharing options...
SDS Posted December 3, 2009 Share Posted December 3, 2009 I like that so many people get upset about a law that doesn't affect them or most people...at all.. Except when you used to work for that dead guy and his family now has to sell the assets to pay the tax bill. So, instead of a business continuing to function normally - it is sold off and perhaps you lose your job because of it... I'm a white male, so I guess I shouldn't care what happens to black people or women - right? Link to comment Share on other sites More sharing options...
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