a good friend of mine is married into a family with a large farm and this issue is concerning to them...he believes they have already passed down ownership and the grandfather who was the primary owner technically owns nothing...
Won’t this also adversely impact many small business owners and their employees?
Some of the loopholes used by the 0.01% are freezing the value of the assets in an IDGT, hence escaping the appreciation which surprisingly is allowed by the code.
If you own land and donate it you could use its appreciation towards estate tax in your favor.
Fortunately as smart as the Feds are, the businessmen in this country are even smarter.
It doesn't take much land now days to be worth 1 million dollars. My Grandpa is worth well over that with land and cattle, but when he passes, i bet he doesn't have $10000 in cash. If this happens, we will have to put most of his cattle on the market, and sell some land. He probably owns 800 acres and runs 300 or 400 head of cattle. Pretty small time for these parts.
I would imagine that smart estate planning can eliminate most of the tax consequences...but I have been out of the loop for too long to know for sure....
if nothing is done about the exemption limit.....they'll have to do something....
they have around $1mil cash and another $4mil in land
We always kind of beat around the bush with my parents and we waited too long..then one day we found out they were incompetent and I had to tiptoe (semi legal lol)around with an attorney friend of the family to get a POA in place...
It was a ****ing nightmare...and still is...gawddamn American Express is still a pain in the ass to this day and I have given them everything but my first born to get them to drop the account...
Between this, being raided for reusing seeds, being raided for selling raw milk and organics without permits... we might as well all just eat the poison they serve us at McDonalds and wait on our shitty health care to buy us insulin and heart disease medication... Every day I grow more and more sick of the bull shit in Washington...
Here we are discussing estate taxes and this pops up...
And I like philanthropist George Soros...****er made his money hedging currency and is known as the man that Broke the Bank of England...he made over a billion dollars screwing with the pound.... lol
WASHINGTON - A coalition of three dozen ultra-wealthy progressives, including billionaire Warren Buffett, former President Jimmy Carter, philanthropist George Soros and former Treasury Secretary Robert Rubin, launched a new effort Tuesday to press members of Congress and the White House to raise the estate tax in order to provide additional revenue for the federal budget.
"A substantial estate tax can provide revenues at a time when our federal government badly needs revenues … and the estate tax will do this without an adverse effect," Rubin said on a conference call organized by the progressive group, Responsible Wealth.
So far, negotiations between the White House and congressional Republicans surrounding the "fiscal cliff" have largely focused on added revenue from higher tax rates for top income levels. But as the December 31 deadline nears, alternative revenue streams are attracting renewed attention.
According to the nonpartisan Tax Policy Center, raising the estate tax by just 10% could produce more than $250 billion in added revenue over the next ten years. In contrast, raising the tax rate on the top 2 percent of earners would only produce around $100 billion in the same period, according to the Congressional Budget Office.
Members of Responsible Wealth, including Bill Gates Sr., Abigail Disney, and Richard Rockefeller, believe that a progressive estate tax is both sound fiscal policy and a personal civic responsibility for wealthy Americans whose families benefited from government investment at all levels of their businesses. "My grandfather Roy and his brother Walt both made their fortunes because of the American system, because there was funding for infrastructure, roads, highways, and regulations," said Disney. "I have no desire to compound my already significant advantages, especially not on the backs of the middle class."
Members of Responsible Wealth have proposed a plan that goes well beyond the one put forth by President Barack Obama, which calls for raising the current estate tax by 10 percent, to a maximum of 45% of an estate's value above a $7.5 million exemption per couple.
Responsible Wealth's proposal would lower that exemption to $4 million so more estates qualify for the tax, and would include a gradual increase in rates on the very largest fortunes -- up to as much as 55%, members said. Exact details of the increase have yet to be nailed down. The group hopes it will find congressional support for the plan, and said talks with the White House are in the works.
Winning congressional support for such a progressive plan might be tougher than it sounds. The estate tax has long been a thorny issue on Capitol Hill, where it is universally reviled by Republicans who label it a "death tax." A number of Senate Democrats from farm-heavy states also oppose estate taxes, which they say interfere with farmers' ability to pass family farms to the next generation.
Three of those Democrats, Mark Pryor (Ark.), Mary Landrieu (La.), and Senate Finance Committee Chair Max Baucus (Mont.) are up for reelection in 2014, which is likely part of the reason the White House hasn't made a bigger deal out of the estate tax.
Another part of the reason is that polls show that Americans generally favor repealing the estate tax, although polling percentages can shift significantly based on how certain questions are phrased. There is also widespread confusion over how many people might actually be eligible for the tax, with more people believing they could be eligible than actually would be.
Currently only around 4,000 people in the United States are affected by the estate tax policy. In 2011, around 3,200 people paid estate taxes, and of those, only 50 were family farms or small businesses.
if i were a conspiracy theorist....i would think the wealthy are using this as a way to get their hands on land/businesses that would otherwise never be available..
We can put in a plan to avoid that tax planning...
Once you hit 50 million in assets everything but 1 million goes to the government...they are so smart they can start over...we screwed over the GM bondholders so we should be able to do away with a simple will or trust....
Monsanto is the devil and is trying to kill us all...
Those GMO seeds took many years and millions of dollars to develop...if some other company wants to spend the time or money to develop their own strains then they are more than welcome to get after it....but they cannot steal Monsanto's work and profit from that theft...
If someone made an exact duplicate of the i Phone, not by their own development, but by theft of their product design then I would expect Apple to fight vigorously to stop the product from coming to market...
If Aurora took years and millions of dollars to develop and patented an Aurora branded 100" 3D tv that cost a hundred bucks at your local retailer I would imagine you would be rather upset if I copied your entire design and undercut your cost by 25% since I had no R&D costs....
Can anyone recommend a good farm and ranch estate planner that doesn't cost 500/hr.
Now, using the GMO seeds that are produced by the GMO crop is the questionable area...but I would imagine that is explained/documented/boilerplated up front when the original seed is purchased...
phil...you're pretty damn smart....for a city slicker
The reduction in the estate tax exemption scheduled to take effect on January 1, 2013 was enacted by the Republican House and Republican Senate and signed into law by Bush in 2001 and 2003. The Bush tax cuts were initially scheduled to expire at the end of 2010, and included in that bill was a provision that would reduce the estate tax exemption to $1 million (after the tax was repealed, but only for 2010). It's only because the House, Senate and Obama agreed towards the end of 2010 to extend the effective date of the Bush tax cuts (including the higher estate tax exemption amount, which now equals $5.12 million per person) through the end of 2012.
Obama is proposing that the estate tax exemption amount equal $3.5 million per person (or $7 million per married couple) beginning in 2013. (Some Republicans want to leave the amount where it is and others want the estate tax repealed.) If the amount equals $3.5 million per person beginning in 2013, it would impact a very, very, very small number of estates, and that group would consist of people who are not wise enough to hire an estate planning lawyer to structure the individual's affairs so that the impact of the estate tax is either eliminated or mitigated substantially.
Last edited by soonerintn; July 20th, 2013 at 01:26 AM.
Again, with proper planning most of the issues can be mititgated if not completely eliminated.
I agree that the law currently in effect beginning next year that reduces the estate tax exemption to $1 million per estate should be increased. Not sure exactly what that amount should be, but I believe it should be higher than $1 million (or $2 million for a married couple).
Let's say Mr Smith a self made man worked hard all his life and AFTER PAYING his income taxes to the tune of 50% or so in CA has saved up $50 million.
He decided to buy a plot of land in hopes of it to appreciate for that entire sum in 2007. That plot of land today is worth $40 million.
He dies today so Mrs Smith inherits that piece of land but has to come up with cash in millions of dollars to actually inherit that land in turn compelling her to sell it. Are you telling me that this is not the very definition of stealing?
To make it simple: If Mr Smith earned $100 over his lifetime, he payed $50 of it in Income taxes. With the leftover $50 he bought land which is worth now $40. He dies and Mrs Smith is looking forward to maybe $20-22 (IF she can come up with the cash). That's almost 75 to 80% taxation and we call ourselves a Capitalistic country! If this is not insane taxation, I dont know what it is.
Now this is a situation where the sum is in millions of dollars so you may not empathize with her as much, but with the new deductions that are looming you can make that case for thousands of Americans for a fraction of that amount. In essence poaching and penalizing hard working productive Americans to subsidize Americans that are not as productive.
What a ****ing joke. It was Republicans that were apparently willing to allow Oklahoma farmers to starve during the Great Depression, arguing against accepting New Deal money. I guess an analysis from the Senate Republican Policy Committee is supposed to be impartial.
Last edited by Sinatra; December 16th, 2012 at 08:09 PM.
i talked to a friend the other day who is an attorney....who also does trusts....from the short conversation....it seemed to me there really is no way to eliminate estate tax.....
what types of "techniques" are you talking about?