Too Rich to Live?

Re:Too Rich to Live? by ryanf on Friday July 09, 2010 @06:29PM (#1502453)

Also note that there is a huge exemption (apparently $3.5m last year, and $1m next year if they don't change it). It's only 45% beyond that point, like tax brackets.

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Re:Too Rich to Live? by Retric on Friday July 09, 2010 @08:21PM (#1502697)

There are a lot of ways of avoiding this,

EX1: you can give your wife unlimited assets without tax implications.

EX2: Let's say you and your wife have a 7 million$ 50% of which is appreciated assets, and 2 million in life insurgence and 3 children. Each of you can give 1 million to each child, so 6 million is exempt, as is all life insurgence thus only the last million is taxed at 45%. Resulting in a 0.450 / ( 7 + 2) = 5% effective tax rate.

Note: If they actually sold their appreciated assets they would pay more in taxes.

EX3: 1 billion in assets. Set's up a blind trust = zero direct taxes on death. Money can compound tax free in the trust and is only taxed on disbursement.

EX4: 1 billion donation to the red cross = zero tax.

PS: If you do nothing and leave 5million to 1 person the effective tax rate is still only 36%. You really have to have huge amount in assets and stupid tax advice for this to be a major issue.

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Re:Too Rich to Live? by d2viant on Friday July 09, 2010 @07:41PM (#1502608)

Only 45% at the federal rate. Don't forget (in most cases) the state taxes that get levied as well.

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