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Inheritance Tax Should be Abolished
Old 12-14-2007, 02:31 PM   #1
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Inheritance Tax Should be Abolished

The inheritance tax is set to go to $-0- in 2010. For one year.

But then in 2011 it comes back, with rate of 55% on taxable estates, under current law.

Why should families who spent lifetimes earning, sweating, slaving, saving---and paying income taxes all along--have the government confiscate 55% of their wealth when the parents die?

I believe this tax should be permanently abolished. It is punative and serves no good purpose.
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Old 12-14-2007, 02:34 PM   #2
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Originally Posted by RetireeRobert View Post
The inheritance tax is set to go to $-0- in 2010. For one year.

But then in 2011 it comes back, with rate of 55% on taxable estates, under current law.

Why should families who spent lifetimes earning, sweating, slaving, saving---and paying income taxes all along--have the government confiscate 55% of their wealth when the parents die?

I believe this tax should be permanently abolished. It is punative and serves no good purpose.
The proper application of trusts and estate planning takes a lot of the burden out of it, but it does require action..........
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Old 12-14-2007, 03:22 PM   #3
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For anyone with $5 - $15 million in assets the current laws are the best possible situation, since you can avoid them with a little work ahead of time...it's the parents who refuse to talk to their kids about money (typical blue collar/middle class attitudes) who are hosed when they die. It's ironic if you think about it, because they are the people who hate the Government's hand in their pocket the most.
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Old 12-14-2007, 03:26 PM   #4
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For anyone with $5 - $15 million in assets the current laws are the best possible situation, since you can avoid them with a little work ahead of time...it's the parents who refuse to talk to their kids about money (typical blue collar/middle class attitudes) who are hosed when they die. It's ironic if you think about it, because they are the people who hate the Government's hand in their pocket the most.
Me: Dad, did you ever get that trust done?

Dad: Yeah, you nagged me to death about it.......

Me: Did the lawyer show you how it will help if something happens?

Dad: Yeah, and there's money in there for you and the kids, but I'm not telling you how much.......

Me: I'll just ask Mom...........

That little conversation came to fruition TEN YEARS after I started bugging him about it.........
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Old 12-14-2007, 03:32 PM   #5
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In my firm, we call it the only voluntary tax in the US. Really rich people don't need it abolished because they just plan around it and never have to pay it. One of the nice parts about working in estate planning law is that our clients usually like us. :P
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Old 12-14-2007, 03:34 PM   #6
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Originally Posted by RetireeRobert View Post
The inheritance tax is set to go to $-0- in 2010. For one year.

But then in 2011 it comes back, with rate of 55% on taxable estates, under current law.

Why should families who spent lifetimes earning, sweating, slaving, saving---and paying income taxes all along--have the government confiscate 55% of their wealth when the parents die?

I believe this tax should be permanently abolished. It is punative and serves no good purpose.
How will attorneys and estate planners gouge folks for doing legal work?
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Old 12-14-2007, 03:39 PM   #7
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Old 12-14-2007, 03:40 PM   #8
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Old 12-14-2007, 03:41 PM   #9
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The recent proposal I read is to increase the inheritance tax exemption to 15 or 17 million dollars. That should be more than enough to keep the average American tax free. As far as those with estates over 17 million I really don't care. They have all of the tax attorneys money can buy to keep them from paying their fair far of taxes like they do now. Where does the money go think Iraq! As the democrats have recently pointed out in their attempt to modify the AMT there are 5,000 of the richest Americans who have setup off shore corporations that help them to avoid paying their far share. What was it someone said "only the poor pay taxes." I always find it hard to understand how people do not want to pay taxes but want good roads, national defense, safe air travel with the help of the FAA, safe food and water, and many other things and than do not want to pay any taxes.
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Old 12-14-2007, 03:41 PM   #10
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There is no federal inheritance tax.
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Old 12-14-2007, 03:45 PM   #11
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Old 12-14-2007, 03:46 PM   #12
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Old 12-14-2007, 04:04 PM   #13
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There is no federal inheritance tax.
Exactly. I think they are talking about estate tax. It confused me too.
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Old 12-14-2007, 05:05 PM   #14
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This is one tax I don't have to worry about.

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Old 12-14-2007, 06:49 PM   #15
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Exactly. I think they are talking about estate tax. It confused me too.
Semantics. Net effect is the same thing. Reduction of what the beneficiary will receive due to taxes.
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Old 12-14-2007, 06:56 PM   #16
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Semantics. Net effect is the same thing. Reduction of what the beneficiary will receive due to taxes.
As I understand it, an estate tax is a tax on the estate that is paid by the executor before the estate is settled. An inheritance tax is a (second, different) tax on income that an individual has previously received from his/her portion of an inheritance. To me, these are two distinct types of tax.

(edited to add - - but I'm no lawyer! You get what you pay for. LOL)
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Old 12-14-2007, 06:58 PM   #17
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Semantics. Net effect is the same thing. Reduction of what the beneficiary will receive due to taxes.
Why do the rich always whine? Whenever there is a transfer of wealth the Government takes a part of it. Get over it and be thankful that you have enough to worry about this tax.
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Old 12-14-2007, 07:02 PM   #18
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Why do the rich always whine? Whenever there is a transfer of wealth the Government takes a part of it. Get over it and be thankful that you have enough to worry about this tax.
Say what? :confused:
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Old 12-14-2007, 07:04 PM   #19
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Say what? :confused:
I was thinking from what she posted, that maybe you are a wealthy heir? Gee, I should have been more friendly in my post to you! (j/k)
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Old 12-14-2007, 07:06 PM   #20
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I was thinking from what she posted, that maybe you are a wealthy heir?
I wish.
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