Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

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.

Anonymous wrote:I think they are probably being smart. Yes it will cost in estate taxes but they are probably worried they might need it. Now that i’m watching my dad and aunt aging, I see that unless you are really wealthy there is no guarantee you will have enough money in late life. If you give it to your kids or grandkids and then realize you need it, do you ask for it back? My aunt spends $300k a year for her round the clock care. She never imagined her money would run out in her lifetime but that’s exactly what is likely to happen in a few years. At minimum she will have to sell her home in the next year and I don’t know where she will wind up. She had plenty of money saved. It’s sad and terrifies me.

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.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

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.

Anonymous wrote:

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.

Yes, it's well-known that parents hate when their kids succeed.

I 100% agree with the other poster that she's waiting for your husband to divorce you before she starts giving out the money.

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.

Anonymous wrote: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?

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.

Anonymous wrote:I hate when selfish narcissists refuse to give me $26M + 50% of the rest of their money.

Logic and math are not your strong suits I see.

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?

OP is a troll.

Anonymous wrote:

Anonymous wrote:

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.

I hate when selfish narcissists refuse to give me $26M + 50% of the rest of their money.

No one has ever complained about the money their estate paid in taxes. So I don't see the problem.
You don't get a vote after you are dead.

I think they are probably being smart. Yes it will cost in estate taxes but they are probably worried they might need it. Now that i’m watching my dad and aunt aging, I see that unless you are really wealthy there is no guarantee you will have enough money in late life. If you give it to your kids or grandkids and then realize you need it, do you ask for it back? My aunt spends $300k a year for her round the clock care. She never imagined her money would run out in her lifetime but that’s exactly what is likely to happen in a few years. At minimum she will have to sell her home in the next year and I don’t know where she will wind up. She had plenty of money saved. It’s sad and terrifies me.

Anonymous wrote:The federal estate limit is 13.1 million per individual, so 26.2 million is excluded from federal estate taxes. Do they have an estate worth more than that?

That will sunset by end of 2025 to about $5.6M per person.

DP: either way, the current or the new will still impact our family. Hence why we have trusts in place to avoid the estate tax.
Also, many states have estate taxes that start as low as $2M (it's a way to make money if you have low or no state income taxes). So these trusts are even more important. Ours starts at 10% and goes up to 20%. So you could be paying out 60% to the govt if not fiscally smart. Not sure why anyone would want to do that when you can legally avoid it

Anonymous wrote:

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.

This makes no sense. My in laws left money to my DH and our children. My name isn't on anything as the spouse. It is all in trust. I am fine with this. I actually want my DHs portion go have a provision that if something happens to him, the money goes in trust to the kids with the condition that they can't touch it until they are 40. Life insurance would cover all expenses and more of anything happened tp him. It sounds like OP doesn't understand how these things work. If they have that much money it is most likely on trusts that doesn't have her name on it, so she isn't privy to it.

Ironically, my niece who is about to inherent just got married to a basically unemployed and uneducated man. I regret she didn't wait to get married until after the inheritance came through. These are real concerns.