Don't Die in 2013: Confiscatory 55% Death Tax Set to Take Effect In 2013, the death tax will revert to its antiquated, pre-2001 form. This content is provided by the Americans for Tax Reform Foundation. Current Law
The 2001 tax relief bill (EGTRRA), drastically reduced the impact of the death tax over the course of a decade, so that it was eliminated entirely for one year in 2010 — a good year to die, joked a number of pundits. The bill lowered marginal rates and increased the applicable exclusion amount, but it also included a provision allowing individuals to carry over exclusion dollars that were unused by their spouse at the time of his or her death. This “portability” measure effectively increased the applicable exclusion for many households, in some instances putting millions of dollars beyond the reach of the federal government. The death tax rose from the grave at the end of 2010, with a Bush-era top rate of 35% and an applicable exclusion amount of $5 million ($5.12 million in 2012).................>>>>.................>>>>.............Read more: http://atr.org/dont-die-confiscatory-percent-death-tax-a7051#ixzz21G4zxcpo
You can't pass on accumulated wealth because it would reduce people's dependance on corporate jobs. That is also why there is inflation, to make sure people don't accumulate enough wealth so as to leave the workforce. That is why people always have the feeling of "never getting ahead". The system is designed to take just enough of money from the 99% through taxation or inflation so to ensure you will be wage slaves for the 1%.
The death tax will cause many farms to be lost when the owner dies and the family members can't pay the 55% tax, they will be forced to sell the farm.
they could dump it into an irrevocable trust.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
In order for the trust to remain a separate taxable entity, you may not have any control over its management or assets. This means that you cannot be the trustee of the ILIT and you cannot use any of the assets within the trust. The assets cannot be borrowed against, withdrawn or otherwise modified.
In order for the trust to remain a separate taxable entity, you may not have any control over its management or assets. This means that you cannot be the trustee of the ILIT and you cannot use any of the assets within the trust. The assets cannot be borrowed against, withdrawn or otherwise modified.
True....but there are MANY retired folks that we know that have placed their homes/property in an irrevocable trust for their children. As far as placing 'money/stocks/bonds' in an trust is based on that individual. Estate attorneys are helpful in this area. (but ya pay a bundle for their service") So ya either pay an attorney or the government.....pick your poison.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
With a farmer it's different than a retired person whose home is paid off. A farmer borrows against his farm for very expensive machinery when needed, seed crops, and improvements mandated by the state.
The Obama administration has proposed returning the estate tax to its 2009 level, with a $3.5 million exemption and a 45% rate on assets that exceed that amount. The House approved the administration's proposal last year, but Republican opponents blocked action in the Senate.
Blocked by the Republicans... a familiar story! (The Party Of NO!)
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
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