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The high cost of dying just went down...
Old 01-01-2010, 02:05 PM   #1
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The high cost of dying just went down...

...at least for those of you with a net worth of several million.

Lack of Estate Tax in 2010: Now Cheaper to Die?


The article points out the law may be changed so if it applies to you it might be a good idea to take advantage of it as soon as possible.
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Old 01-01-2010, 02:06 PM   #2
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Yeah, I wouldn't expect this to last all year. Pull the plug now while you can!
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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Old 01-01-2010, 02:19 PM   #3
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I swim with a guy who this is a total concern for. Maybe he's planning to kill his mother...who knows? Anyway, after much discussion with others it was established that this should last about a year? Does that sound right (I know zip about this issue myself being in the let-the-chips-fall-where-they-may mentality on the subject of death.)
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Old 01-01-2010, 02:23 PM   #4
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Gosh REW...this article and your new avatar...you're freakin' me out a little bit...
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Old 01-01-2010, 02:45 PM   #5
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A few years ago, I heard this called the"Take Granpa Hunting Act"

It doesn't bother me, since I am nowhere near the limit and intend to spend what I have.

I will leave a catfood fund, if the cats are lucky!

ta,
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Old 01-01-2010, 02:46 PM   #6
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We actually just wrote an article about this earlier today. Here's what we wrote:

The 2009 exemption for calculation of the estate tax was $3,500,000. If a bypass trust had been incorporated into the planning process, the exemption was doubled to $7,000,000. Thus, the total value of the estate (given the assets and liabilities) would have had to exceed the $7,000,000 level before any estate tax would be levied.

Unfortunately, the $3,500,000 exemption expired at the end of the year (2009). While the current laws do not assign a tax in the year 2010 for transfer of assets in the estate upon the second death (husband and wife), the values assumed by the beneficiary (e.g., the children) will be assigned according to the cost basis of the property. Thus, if the cost basis of the property purchased by the parents was $100,000, and the children sold the property for $1,000,000, the children would be required to pay the tax on the excess over the cost basis ($900,000).

In the year 2011, the exemption returns to a $1,000,000, and a step-up in basis is then assigned after calculation of the estate tax to be paid (or $2,000,000 if a bypass trust has been part of the distribution process). If the cost basis of the property purchased by the parents was $100,000, and the children sold the property for $1,000,000, they would keep the entire $1,000,000 (since the higher step up in basis value was used to calculate an estate tax in 2011 – the estate tax calculation wasn’t required in 2010).

Congress is aware of the estate tax issues, and plans to address the changes in further detail. Other issues, of course, have become more pressing, and the estate tax legislation may be reviewed in 2010.
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Old 01-01-2010, 02:51 PM   #7
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I don't care. The way we spent it, my offsprings should be grateful there is anything left.
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Old 01-01-2010, 02:53 PM   #8
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Quote:
Originally Posted by mews View Post
A few years ago, I heard this called the"Take Granpa Hunting Act"

It doesn't bother me, since I am nowhere near the limit and intend to spend what I have.

I will leave a catfood fund, if the cats are lucky!

ta,
mew
You and I have GOT to be related!
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Old 01-01-2010, 04:07 PM   #9
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Quote:
Originally Posted by bbbamI View Post
Gosh REW...this article and your new avatar...you're freakin' me out a little bit...
Must be your hangover.
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Old 01-01-2010, 04:10 PM   #10
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I read a similar article the other day (might have been in the WSJ). Talked about some people who've been barely hanging on (one guy woke up every day and asked if it was January 1st yet), or families making decisions to keep grandpa plugged in a few more days. The weirdest was some dude wanting to know the implications if he went to a foreign land and opted for assisted suicide. Creepy city!

Me, I'm spending it and I don't even have a damn cat. If the wife is good I will leave her a little something, maybe.
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Old 01-01-2010, 04:13 PM   #11
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No mention of the kids, I see.
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Old 01-01-2010, 04:13 PM   #12
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Originally Posted by REWahoo View Post
Must be your hangover.
Nah...I'm a little long in the toof for that type of thing... However I do remember the daze....eh barely...

I be a sipper now.
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