I hate when selfish narcissists refuse to give me $26M + 50% of the rest of their money. |
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. |
OP is a troll. |
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? |
Logic and math are not your strong suits I see. |
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. |
So your DH’s financially successful parents were able to give their children privileges throughout their life because of their financial success (likely with the hope their children would be successful) now that their kids are successful they are angry? I know that everyone isn’t rational so this is possible but…they are still leaving their children lots of money. Maybe they have mixed views about giving their successful adult children millions of dollars. Money can be corrupting at a point. Maybe they want their kids to work as hard as possible in their careers. I personally would pay for life insurance to cover estate taxes and then use those savings to fund a DAF or similar vehicle with the goal of teaching my grandkids to be philanthropic and donate to charitable causes or I might just donate to all those causes during my life. I wouldn’t worry about this, OP. You and your kids will be fine. If you want more money figure out how to make it yourself. |
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. |
There are much more affordable ways than round the clock care. Find a good CCRC, pay the $400K+ entry fee and then you are set. Pay $6-7K/month for independent living, including 8-10 meals per week for a couple. The only increases when you require more care (assisted, nursing, dementia care) is the extra food for 3 full meals per day. Otherwise your entry fee covers the anticipated costs. And with many, should you "run out of money" you still get to stay without paying more and they cannot touch your SS. So all you need to enter at age 70+ is 1.4M or so. |
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. |
I'm calling troll. |
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). |
Then why are gifts taxed over 17k annually? |
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. |
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. |