estate and inheritance taxes

[ncbill]

Well, Bill is hypothetical, but in post 39 he owns a house.

For all this effort, it might just be easier to move to Ohio.

It's even easier than that...Mea culpa, I made the wrong assumption that the state charged the same rate on gifts as inheritance.

But PA has no gift tax, so long as he survives a year from the date of the gift.

So Bill just gifts his assets to an irrevocable trust, probably a Medicaid trust if he really is getting along in years.

Then files federal Form 709 with his tax return to use up part of his lifetime credit assuming he's worth less than ~$11.5 million.

And goes on with his life from there.

 

[jayanu]

Positive and negative, I think.

Yes. Thanks.
Jay Shah

 

[ERD50]

Yes. Thanks.
Jay Shah

?

So "+VE" = "Positive", "-VE" = "Negative"? OK, but that doesn't explain much. And it's confusing - is this +/- for the friend who is moving from IL to CA, or the heirs staying in CA? What about:

Illinois absolutely has a death tax...up to 16% depending.

https://smartasset.com/estate-planni...244 million.

+ means positive and - means negative, but in context VE should mean Illinois, but I've never seen that before and wonder about the weather in Illinois being better than California, which makes me suspect I don't know what VE stands for. So OP? What do you mean?

And IL does have sales tax on food/drugs, but it is lower (1%), and local taxes may be added.

-ERD50

 

[Out-to-Lunch]

And, given the forum rules, what about:

-VE
* it is a very liberal and heavily democratic state in big cities

 

[RetireeRobert]

The +VE and the -VE are the positives and negatives for the friend moving from IL to CA.

At least that is what I deduced from both lists.

 

[ERD50]

And, given the forum rules, what about:

Quote:
-VE
* it is a very liberal and heavily democratic state in big cities

No comment on whether that's positive or negative, that's a personal preference, but it is true of both CA and IL.

-ERD50

 

[MichaelB]

<mod note> Can we move past the politics, please?