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

[Anonymous]

Anonymous wrote:Sometimes, successful old people have an identity crisis and wonder who or what really needs them or cares that they still exist anymore. When a grown child needs their money, the senior still has a pull on others. At a minimum, visits to the grandparents get made to generate favor. And, who knows, ma and pa might surprise everyone with a nice gift. Likewise, if the grandparents are paying for kids private education. There is a sense that they still matter and make a difference. However, when kids are doing great and don’t need the grandparents or their money, there can be a sense that the grandparents don’t really have a role to play anymore. Of course, the ideal role is that their children and grandchildren just enjoy their company and want them around, but that’s a small minority of situations. Basically, OPs situation is a power play by the grandparents, as they’re miffed that they’re not really needed or wanted, yet they know that the kids might get their money anyway someday.

This is a really good perspective, thank you (not OP).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wouldn't you feel strange and guilty taking these huge sums of money from them while they're still alive? Wouldn't it create a strained and weird dynamic? Wouldn't you feel inadequate?
LOL of course not....that's why you picked this guy. To cash in asap.
Everyone knows you have to wait until your 60s for the older generation to finally croak and then you can spend the money on cruises and restaurants. Not a moment before!

Are you new here? Tons of posters accept private school tuition, college tuition, down payments, lavish vacations, plus cash gifts up to the annual limit per person and don’t feel an ounce of guilt.

Why should they feel guilty?

[Anonymous]

Anonymous wrote:

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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.

You forgot about the lifetime exemption.

DIdn't forget---that's the "estate deduction". But the under $18K doesn't count for that. Hence why rich people gift their kids and grandkids and SIL/DIL the max yearly while alive---it's a great way to avoid going over the exemption

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wouldn't you feel strange and guilty taking these huge sums of money from them while they're still alive? Wouldn't it create a strained and weird dynamic? Wouldn't you feel inadequate?
LOL of course not....that's why you picked this guy. To cash in asap.
Everyone knows you have to wait until your 60s for the older generation to finally croak and then you can spend the money on cruises and restaurants. Not a moment before!

Are you new here? Tons of posters accept private school tuition, college tuition, down payments, lavish vacations, plus cash gifts up to the annual limit per person and don’t feel an ounce of guilt.

Nor should they feel guilt. If your family has the money, why wouldn't you use it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wouldn't you feel strange and guilty taking these huge sums of money from them while they're still alive? Wouldn't it create a strained and weird dynamic? Wouldn't you feel inadequate?
LOL of course not....that's why you picked this guy. To cash in asap.
Everyone knows you have to wait until your 60s for the older generation to finally croak and then you can spend the money on cruises and restaurants. Not a moment before!

Are you new here? Tons of posters accept private school tuition, college tuition, down payments, lavish vacations, plus cash gifts up to the annual limit per person and don’t feel an ounce of guilt.

Nor should they feel guilt. If your family has the money, why wouldn't you use it?

Correct. So why the attack on OP?

[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.

Sounds like he married a woman like his mom.