Tbone Posted December 17, 2009 Share Posted December 17, 2009 Actually, I was pointing out that estate taxes are not levied until after the individual has, in fact, died. Thanks for clearing that up. Fastest turnaround ever. I certainly wasn't claiming "no escape". Some time ago I suggested there is a very simple way to avoid any taxes upon Ralph's passing---and it's free and legal: leave it all to the missus. She doesn't have to "run the team", she can just count the money. When she sells it (to "Jim Kelly's Group", if you like), she will get half of its value after taxes. Not a bad haul for nothing, don't you think? She can then set up a legal trust to dole out her booty upon her joining Ralph in the after life. WEO- you are not a lawyer either... you DO NOT UNDERSTAND TAX LAW. The last time we had this conversation you didnt realize Wilson's wife would have to pay a capital gains tax on the team... I am glad to see at least you now realize that is the case. But, you still should not be making up "ideas" and spreading them as fact when you dont have the knowledge to back them up. Do you realize that setting up a "legal trust" (what ever that is), to dole out her "booty" she would trigger another layer of tax? I am begging all of those who want to comment about legal matters they dont understand to refrain from doing so- all you are accomplishing is spreading mis-information that makes a serious conversation on the topic impossible. :lol: :wallbash: Link to comment Share on other sites More sharing options...
RyanC882 Posted December 17, 2009 Share Posted December 17, 2009 My point is that you dont understand what you are talking about. It is not easy to avoid the estate tax AND pass significant assets to heirs that are not your spouse, the fact that you think it is shows that you have absolutely NO knowledge about estates, gifts and trusts. If it were as easy as you suggest there would be no estate tax, and certainly the government wouldnt be making hundreds of billions each year from the estate tax (and remember, the people that pay the estate tax are usually pretty sophisticated businessmen, because an estate has to be worth more than 3.5 million to have tax imposed). That is not to say that planning cant be done to minimize estate tax exposure, but I should also note that in the instances where you can avoid the estate tax many times other taxes apply (for example the gift tax). Estate planning is not simple, much of it deals with structuring transfers due to the needs of heirs, most of the time a secondary concern is the tax that will be applied. There is a world of possibilities with regard to the disposition of Mr. Wilson's assets, but they are not of the range that you think. Finally, an intelligent comment from someone who knows what he or she is talking about. Link to comment Share on other sites More sharing options...
Mr. WEO Posted December 17, 2009 Share Posted December 17, 2009 WEO- you are not a lawyer either... you DO NOT UNDERSTAND TAX LAW. The last time we had this conversation you didnt realize Wilson's wife would have to pay a capital gains tax on the team... I am glad to see at least you now realize that is the case. But, you still should not be making up "ideas" and spreading them as fact when you dont have the knowledge to back them up. Do you realize that setting up a "legal trust" (what ever that is), to dole out her "booty" she would trigger another layer of tax? I am begging all of those who want to comment about legal matters they dont understand to refrain from doing so- all you are accomplishing is spreading mis-information that makes a serious conversation on the topic impossible. :wallbash: :wallbash: The estate tax and the capital gains tax are not the same. The latter is lower. I say that she ould not be on the hook for the former in 2010. I am simply mentioning the only way his beneficiary can avoid the death tax. What's so crazy about that? A legal trust, as opposed to an illegal one (as the previous poster was suggesting)--as a way to limit the hier(s)'s tax liability. Stop begging.....and stop taking yourself and this site so seriously. Such drama. Link to comment Share on other sites More sharing options...
Tbone Posted December 17, 2009 Share Posted December 17, 2009 The estate tax and the capital gains tax are not the same. The latter is lower. I say that she ould not be on the hook for the former in 2010. I am simply mentioning the only way his beneficiary can avoid the death tax. What's so crazy about that? A legal trust, as opposed to an illegal one (as the previous poster was suggesting)--as a way to limit the hier(s)'s tax liability. Stop begging.....and stop taking yourself and this site so seriously. Such drama. WEO... dont be sore that I am calling you on the BS that you continue to put out there. I dont take me self too seriously, but what drives me nuts is when someone makes statements of "fact" that couldnt be farther from the truth. FYI, under your suggestion Wilson's estate still gets double taxed... once for capital gains, and once as a gift. The gift tax is higher than the estate tax. Your plan would cause a greater de-valuation of the estate then if Wilson sold it now and then was taxed again at his death. Link to comment Share on other sites More sharing options...
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