Re: Since you've never had this happen to someone you know

Post #253,817 by tuberculosis 4/29/06 1:10:05 AM Reply	Re: Since you've never had this happen to someone you know "What happens if you are living in that house, caring for your parent? " Eh? So dad dies and mom is still in the house? Doesn't apply. The tax doesn't kick in until she dies. "Currrently, the tax applies only to taxable estates over $1.5 million, that is, estates over $1.5 million after debts, final expenses, charitable bequests and bequests to a spouse have been subtracted. Because an unlimited amount may be transferred tax free to a spouse, the tax is typically paid only once a generation, when the second spouse dies." [link\|http://www.blackbagops.net\|Black Bag Operations Log] [link\|http://www.objectiveclips.com\|Artificial Intelligence] [link\|http://www.badpage.info/seaside/html\|Scrutinizer]
Post #253,827 by bepatient 4/29/06 11:12:14 AM Reply	Try.. ...so dad's already dead and mom dies. In the northeast and now in northern california...simple ownership of the house with no mortgage puts you over that limit with 0 cash. So, own the house and live on a pension...parent dies and the tax bill is 750k. You have 9 months to sell and pay...or penalties start. The limit is too low in todays market by a MAJOR amount. If you push something hard enough, it will fall over. _{Fudd's First Law of Opposition} [link\|mailto:bepatient@aol.com\|BePatient]
Post #253,832 by jake123 4/29/06 11:55:15 AM Reply	Nota bene The exemption is such that it needs to be changed according to region; what is reasonable in one place (say Arkansas) might be ridiculously low in another (say LA). The logical way to do that would be to calculate it by postal code or some such (er, zip code I guess for you guys). That said, I think the inheritance tax is a Good Thing; while it may not seem ideologically reasonable, practical experience shows that it does what it's supposed to do and does it well (cf- Gilded Age). --\n-------------------------------------------------------------------\n* Jack Troughton jake at consultron.ca \n [link\|http://consultron.ca\|http://consultron.ca] [link\|irc://irc.ecomstation.ca\|irc://irc.ecomstation.ca] \n Kingston Ontario Canada [link\|news://news.consultron.ca\|news://news.consultron.ca] *\n-------------------------------------------------------------------
Post #253,842 by drewk 4/29/06 8:56:24 PM Reply	All true, but that's a different problem I like the European solution someone has mentioned here. Banks will finance a give property for the same amount no matter where it happens to be. This puts a serious brake on real estate speculation. Taking some of the excessive valuation out of the market solves several major problems, and makes others more manageable. How to get there without screwing all the people currently sitting on monster mortgages is the hard part. === Purveyor of Doc Hope's [link\|http://DocHope.com\|fresh-baked dog biscuits and pet treats]. [link\|http://DocHope.com\|http://DocHope.com]
Post #253,845 by tuberculosis 4/29/06 11:40:20 PM Reply	Mortgage or move that's life. My dad was in hock up to his ass when he died. I expected (and got) nothing. What of it? I didn't get his boat, his car, or his house. How am I hurt by the estate tax? None of it was mine, none of it was owned free and clear anyhow, and all of his savings was eaten by long term medical bills. I don't have any sympathy for your hypotheticals. I'd like to see it ramped way up and used to pay for universal health care equal to what the congressmen get. [link\|http://www.blackbagops.net\|Black Bag Operations Log] [link\|http://www.objectiveclips.com\|Artificial Intelligence] [link\|http://www.badpage.info/seaside/html\|Scrutinizer]
Post #253,863 by bepatient 4/30/06 10:55:11 AM Reply	Interesting take Alot more extreme than I would have expected of a father. This is not a dig...your view is clear...I'm just wondering if it may mellow as you and family age gracefully. The small business thing is real...whether you want to recognize it or not. Restaurants are a huge example in Philly. Mom and Dad open...all the kids work it and when the last parent dies the kids have to close and sell the building to MAYBE make the tax payment because the limits are so low. In these cases it goes against damned near every core value most people want to protect. Again, I'm ok with docking half of Sam Walton. The leftover half would make all his kids very comfortable forever. I'm completely against the collateral damage that happens all the time...and at current levels is REALLY going to start showing now given real estate valuation. If you push something hard enough, it will fall over. _{Fudd's First Law of Opposition} [link\|mailto:bepatient@aol.com\|BePatient]
Post #253,873 by inthane-chan 4/30/06 12:41:41 PM Reply	So take Ben's solution. Bump it up to $20mil, then index to inflation. When somebody asks you to trade your freedoms for security, it isn't your* security they're talking about.*
Post #253,887 by tuberculosis 4/30/06 4:33:08 PM Reply	I have no intention of building a legacy for my kid to inherit. If she wants to make it, she'll make it on her own. I'll help her, sure. But I'm not busting my ass so she can sit on hers. Typically, rich kids don't generally do as well as their parents. Observe Paris Hilton for instance. One might suspect that this may be partially caused by them figuring they'll inherit it all anyhow so why put in the effort. There are mechanisms for transferring business interests that can avoid the inheritance tax. For instance, if the restaurant is truly a family business, then the kids can gradually take it over via vesting agreements. I also agree that the threshold could be made - oh $5million to pull a number out of the air - to fix the edge cases you cite. [link\|http://www.blackbagops.net\|Black Bag Operations Log] [link\|http://www.objectiveclips.com\|Artificial Intelligence] [link\|http://www.badpage.info/seaside/html\|Scrutinizer]

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