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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think he's more the norm than people would like to admit in DC.  $300K income but house-poor with a $1.2 MM home in Chevy Chase and private school tuition.  His parents were typical white-collar in CC as well.  He likely had student loans that were paid off, so he didn't start saving for retirement until later (thus the $500K TSP).  He has wealthy friends and a slight desire to keep up with the Joneses (see said house and the expensive baseball tickets).  I think he's pretty typical.[/quote]

Are you kidding?  His father is a multi millionaire.

https://prabook.com/web/everett.kavanaugh/1365780[/quote]

He grew up in my neighborhood at around the same time I did (I did not know him). It was a normal neighborhood of small lots and small houses. Some have been renovated since then but relatively few compared to other parts of Bethesda because they lots are so small. In those days B-CC was not very highly regarded so it was not at all unusual for kids in the neighborhood to go to private school (I did too). Anyway, I'm sure his parents are comfortable, but someone who grew up where I did is NOT a trust fund kid, or likely to have parents paying credit card bills in his 50s.[/quote]

Kavanaugh's father was paid $13 million in 2004, the year he retired from his job as the head of the Cosmetics, Toiletry and Fragrance Association. His parents are loaded, he's an only child, and they can easily afford to help him out financially. My guess is that Mommy and Daddy bailed out little Brett.

https://www.nytimes.com/2018/07/14/us/politics/judge-brett-kavanaugh.html[/quote]

That may be the case [b]but there is a limit to how much you can accept as gifts tax free.[/b]

Either way do we want a judge who can't manage his own finances and needs to be bailed out in his 50's by his parents?[/quote]

This is incorrect.  Why do so many average Americans think this?!?!   The only limit is for estate taxes paid by the ESTATE - not the recipient of the gift.  There is NO limit as to how much money someone can receive tax free.   [/quote]

kinda.[b]  if you exceed the amt ($15k in 2018), it has to be deducted from the estate's exclusion amount.[/b]

eg. Bob is worth $50m.  he "gifts" his son $10m - which is obviously way over the $15k yearly limit.  that's allowed, yes, but must be subtracted from the total allowed exclusion amount from the "estate" Bob leaves behind.  (depends on the year, 2018 = $11.2m before estate pays fed tax)

*important to distinguish btw Bob's worth (i.e., while living) vs an "estate" (assets previously owned by now-dead-Bob)

yes, dead people have to file taxes for the year they die but that's just the usual "income/interest" regular accounting 1040 for that particular year.  one way to think about this is: when Bob dies, HE isn't worth anything (bc he's dead and dead people can't "own" things legally) BUT his "estate" has $40m.

So, say Bob dies in 2018 (right after he gifts $10m to his son) when he was worth $40m ($50m - $10m).

The exclusion amt in 2018 is $11.2m . BUT Bob's "estate" already used up $10m of that $11.2 ... so only $1.2m is allowed to be excluded.

Bob's estate would be liable for federal tax on $38.8m.

(note: this math isn't quite right - I left out the first $15k that would be excluded from the $10m substraction.  but that makes the math unnecessarily messy and is basically a rounding error.)

this all completely ignores trusts, btw.[/quote]

Right that’s consistent with what I said.  The only limit is for the estate.  Not the recipient.  Anything over the gift amount is subtracted from the estate’s exclusion.  [/quote]

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