max momo
Contributor
Today – There is No Federal Estate Tax
The Estate Tax Expired January 1st.
Previously, there had been a 3.5 Million (7) United States Dollar (USD) exemption, per person, per estate. So, if you and your wife have a 7 M estate (in a community property state), then you HAD 3.5M exempted from federal estate tax and she had 3.5M exempted so long as you had a properly drafted bypass (A=B) trust. What actually had been the best strategy is that upon your death 3.5 million goes into the Bypass (B) portion of the estate, left for the benefit of your children. Your wife then controls Part A of the trust, living on that 3.5 million (which, in turn, can be passed along to heirs). Money above and beyond was taxable up to a maximum rate of 45%.
As of TODAY there is NO USDollar exemption. You can die with 100M USD and not pay any tax. However, don’t put antifreeze in papa’s oatmeal just yet. There is very little likelihood that a US congress dedicated to lowering your standard of living will not provide some goofy ‘fix’ that reaches back retroactively. The reality is when Congress is in session they will concoct whatever is best for their lobbyist friends; anything is possible, and the worse case scenario is the most probable. That is why there is an entire industry devoted to ‘tax preparation. The regulations were designed such that YOU must pay money to an industry to ‘properly file’ your taxes. That industry, in turn, provides kickbacks to the same crooks who write the impossible regulations.
As currently stands in regulation for 2011, according to existing regulations, the exemption will go to 1 Million (closer to 1.3M with fine print [step up in basis adjustments]) with a top cap of 55%.
Even more troubling is the sunset of previous guidance regarding step up in estate basis. A complete mess brought to you by the same fools so actively working behind closed doors to ‘FIX’ health care for YOU!
In other words the rich get richer.
So:
- Do you have more than 1.3M USD in assets? Or, do your parents?
- Do you have an existing bypass trust
If so, time to fork over more ‘crooked congress tax’.
Bottom line: Do you have any money?
Good...
Give it to your masters (or don’t let them know you have any).
The Estate Tax Expired January 1st.
Previously, there had been a 3.5 Million (7) United States Dollar (USD) exemption, per person, per estate. So, if you and your wife have a 7 M estate (in a community property state), then you HAD 3.5M exempted from federal estate tax and she had 3.5M exempted so long as you had a properly drafted bypass (A=B) trust. What actually had been the best strategy is that upon your death 3.5 million goes into the Bypass (B) portion of the estate, left for the benefit of your children. Your wife then controls Part A of the trust, living on that 3.5 million (which, in turn, can be passed along to heirs). Money above and beyond was taxable up to a maximum rate of 45%.
As of TODAY there is NO USDollar exemption. You can die with 100M USD and not pay any tax. However, don’t put antifreeze in papa’s oatmeal just yet. There is very little likelihood that a US congress dedicated to lowering your standard of living will not provide some goofy ‘fix’ that reaches back retroactively. The reality is when Congress is in session they will concoct whatever is best for their lobbyist friends; anything is possible, and the worse case scenario is the most probable. That is why there is an entire industry devoted to ‘tax preparation. The regulations were designed such that YOU must pay money to an industry to ‘properly file’ your taxes. That industry, in turn, provides kickbacks to the same crooks who write the impossible regulations.
As currently stands in regulation for 2011, according to existing regulations, the exemption will go to 1 Million (closer to 1.3M with fine print [step up in basis adjustments]) with a top cap of 55%.
Even more troubling is the sunset of previous guidance regarding step up in estate basis. A complete mess brought to you by the same fools so actively working behind closed doors to ‘FIX’ health care for YOU!
In other words the rich get richer.
So:
- Do you have more than 1.3M USD in assets? Or, do your parents?
- Do you have an existing bypass trust
If so, time to fork over more ‘crooked congress tax’.
Bottom line: Do you have any money?
Good...
Give it to your masters (or don’t let them know you have any).
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