Inheritance Tax Should be Abolished

[RetireeRobert]

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.

 

[FinanceDude]

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..........

 

[macdaddy]

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.

 

[FinanceDude]

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.........

 

[Caoineag]

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.

 

[youbet]

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?

 

[Martha]

Must. Not. Post.

 

[REWahoo]

What's for dinner?

 

[Freein05]

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.

 

[Khan]

There is no federal inheritance tax.

 

[FinanceDude]

Must. Not. Post.

You could always crack the whip..........

 

[youbet]

Must. Not. Post.

Thank you for not gouging my eyes out! (Figuratively speaking of course!) Your mercy is greatly appeciated!

 

[W2R]

There is no federal inheritance tax.

Exactly. I think they are talking about estate tax. It confused me too.

 

[bbbamI]

This is one tax I don't have to worry about.

 

[Dawg52]

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.

 

[W2R]

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)

 

[nun]

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.

 

[Dawg52]

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?

 

[W2R]

Say what?

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)

 

[Dawg52]

I was thinking from what she posted, that maybe you are a wealthy heir?

I wish.

 

[NotSoonEnough]

Say what?

Well, obviously, with yer golf, country club, and yer high falutin' friends... Oh my!

 

[Freein05]

It is amazing to me how many people worry about the death tax when in reality very few people are affected by it. Look at Buffet he stated he is not leaving his kids anything. Let them work to earn it. Paris Hilton is a good example for increasing the death tax. We all would be better off if she had not inhearted money. In fact she is the poster child for increasing the death tax.

 

[JustCurious]

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.

You left out an important fact which dilutes your point....the average family simply doesn't have to worry about the estate tax because of the estate tax exemption, which is currently $2 million dollars. Only estates above that exemption amount incur estate taxes.

Secondly, I think the estate tax on very wealthy people serves an important purpose...it prevents wealthy families from growing their wealth to infinity and making their offspring very lazy and unproductive, and without the estate tax, America would become a meritocracy, the very thing that our ancestors ran away from. Just ask the two of the wealthiest Americans...Warren Buffett and Bill Gates...

Dozens of the Wealthy Join to Fight Estate Tax Repeal

 

[youbet]

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.

1. I don't consider myself "rich." But, according to Firecalc, if the markets are favorable during my retirement years, there is the possibility that I'll croak with enough of a portfolio that my estate could be taxed. My final estate could also be zero, again depending on the markets and the economy over the next few decades. I suspect lots of folks on this board are in similar circumstances.

2. I'm not whining about paying the tax. I'm whining because they make it so wishy-washy. Your estate might have to pay.....BUT..... if you pay to have the appropriate trusts and other tools put into place, you may just wiggle out of it.

I say, pay or don't pay. But let's try to get rid of all the wiggle room. I just find taxes that can be avoided buy applying paper shuffling very annoying.

If all attorneys were as intelligent, ethical, good looking and personable as Martha, that would be another story. I'd enjoy spending time and money with them.

youbet (trying to dig out of a hole)

 

[Dawg52]

Well, obviously, with yer golf, country club, and yer high falutin' friends... Oh my!

Golf equates to being rich huh? And you know my falutin friends? Well good for you. You got me.