phinsup

**** me, so my dad is getting this inheritance and retiring in the same year, they pay taxes on the estate of 50%, then my Dad's pays income tax on the inheritance.



Now, he's getting all the money in equities... well most of it. Soooooo, apparently you don't pay taxes on it until you sell the stocks, but we're pretty much lost, gotta go to a lawyer and figure out how to do this without loosing most of it to taxes.



Now let's take a second here and figure it out, my Great Uncle was taxed when he made the money, he was taxed when he died at 50%, now my Dad will be taxed at 38%. Anyhow we're having this lawyer figure out the best way to keep it from getting taxed and draw some on the principle, man what a pain in the ***.



Now mind you I have no issues paying my taxes, I love this country and I know for the most part the taxes go to the many things that make the US what it is, but this is a bit rediculous, my Dad is going to have about some good money in inheritence and retirement and he can't even buy a new truck this year cause he can't get to the money without loosing half of it. It seems fucked that they can tax one dollar so many times.

thafox

damn that really ****** blow's hope it works out for the best good luck on that

Turbo II

thats how america works. sucks but we pay for it

phinsup

It sucks, in this case the government gets 50% on the estate, so they get a little over 1 million in taxes before the money is distributed, then they get 38% from the inheriters.

mazdadrifter

that's why the people that avoid taxes and/or are smart with write offs are rich.



I've been told that you'll never ever be rich as long as your working for someone. because:



1 your taxed when you make money

2 your taxed when you spend money

3 your taxed when you hold money (in some cases)

4 your taxed when you own anything of value (car / land)

5 your taxed to license a car

6 your taxed to live

7 your taxed to die



ect ect



The secret of the rich guys is that they find ways to get around these taxes legaly.



Be it owning/running a business or other ways.



Thats why me and scott are starting a church. Best business going!

phinsup

Yea I am going to the lawyer on Friday, we'll see what he says, might end up going with an LLC or a Trust.

Baldy

Ok, break it down for the guy who's slow on math today. Let's say the original amount in this situation is $100,000. By the time all the taxes are paid, what's left?

phinsup

Well 100,000 is a bad examply as estates are only taxed over $1,000,000



Let's go with that.



1,000,000

- 50% Estate Tax (this can also be paid as "inheritence tax if not paid at estate level)

= $500,000



Money dispersed to family member:



$500,000

-38.6% Income Tax (est tax for that bracket)

= $307,000 after taxes.





So if someone came to you today and said hey, you inherited one million dollars, expect to have $307,000 in your account when everything is paid.



Keep in mind you dead relative already paid taxes on this money when he earned it and on any dividends that he may have earned on the stocks.

Baldy

ahhh, that sucks. I remember my wife and mother-in-law discussing this stuff when her grandmother was dying, about moving money to CD's with 2 names, so it wouldn't necessarily be an inheritance, or something like that.



My dad ought to do what he always said he was going to do, spend everything before he dies.

Pyrrian

There's gotta be a loophole somewhere. If you find it, please share it with the rest of us. That's just ridiculous to have to pay such redundant taxes. Man, I have to figure out something in my will that will deny the government any stake in my estate... Why you pay tax when you die is beyond me. I mean, it's not like the government is maintaining public works in the afterlife.