DescentBB

....twice or three times if needed to fully sink in. Another example of the economic reality I've been talking about here since I joined. Yes, that is Trillions, with a T.



http://www.msn.com/en-us/money/markets/ ... ar-AA87OIZ

callmeslick wrote:....twice or three times if needed to fully sink in. Another example of the economic reality I've been talking about here since I joined. Yes, that is Trillions, with a T.



http://www.msn.com/en-us/money/markets/ ... ar-AA87OIZ

Yeah spread over 30 years. I guess the headlines wouldn't be as grabby if they said American families will transfer 200 billion this year. And of course you probably didn't go beyond the headlines to read:

"And many of those passing on their wealth are self-made individuals."

yes, I did. Whether first or tenth generation, it is a sobering set of statistics, which reinforce the point I've made here before: more money is now being transferred in the US via inheritance than by wages. Not a good thing for a healthy middle class.

ya inheritance tax.

My son-in law and his family have a beautiful place on a bluff over looking the Clackamas River.
5 acres. wooded. quiet.

When his father dies it's will be willed to him and my Daughter and Grandkids. unfortunately the 1.2 million inheritance tax will force them to sell it. shame. Property that's been in the family for generations stolen by the government.

is that your state tax ceiling, CUDA? I mean the Fed ceiling(which is used in Delaware as the ceiling) is $5.2 million, half of which can be real estate. Further, if owned by a couple, the unused portion of the first decedant's allowance can be transferred to the surviving spouse. In other words, by way of example, my Mom's estate was a bit under 1.7 million, so my Dad has 8.9 million protected from Federal Inheritance tax under current law.

Honestly. I don't know. I just know what the family was told. I know they have looked into it, but I cant tell you any more then that

CUDA wrote:Honestly. I don't know. I just know what the family was told. I know they have looked into it, but I cant tell you any more then that

doesn't make sense to me. I stand to inherit far more land value than that with zero inheritance tax(save the 1.6% probate fee in Delaware) according to our family's accountant.

edit: just re-read your post. If 1.2 million is the inheritance tax, then the land might be worth a LOT of money, like maybe 8 or 10 million. Given the location you stated, if there is enough market(at that location, we might be talking about around $200,000 per acre which is steep, but not unheard of), the property might be worth that much, and if it goes to a single individual, the 40% figure kicks in once you get past 2.6 million. However, MOST families with $10 million in real estate have similar amounts or far more in cash and stock assets, so I normally don't feel much pain if they get hit by the tax. The scenario you lay out can be seen as disheartening, but with planning and a good market, perhaps they can just sell off 10-15% of the total and keep the rest of the family land.

CUDA wrote:ya inheritance tax.

My son-in law and his family have a beautiful place on a bluff over looking the Clackamas River.
5 acres. wooded. quiet.

When his father dies it's will be willed to him and my Daughter and Grandkids. unfortunately the 1.2 million inheritance tax will force them to sell it. shame. Property that's been in the family for generations stolen by the government.

Can't he just move in (thereby avoiding that tax)?

Ferno wrote:

CUDA wrote:ya inheritance tax.

My son-in law and his family have a beautiful place on a bluff over looking the Clackamas River.
5 acres. wooded. quiet.

When his father dies it's will be willed to him and my Daughter and Grandkids. unfortunately the 1.2 million inheritance tax will force them to sell it. shame. Property that's been in the family for generations stolen by the government.

Can't he just move in (thereby avoiding that tax)?

good thinking. In fact, that is precisely why I'm living where I do, now, to keep the real estate total down when my Dad passes. He sold me this property, but at HIS original cost, which is about 10% of current value of this home.