States Picking Up Where Death Tax Left Off

FOX NEWS ^ | Thursday, April 04, 2002 | Kelley Beaucar Vlahos

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WASHINGTON

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[Nitro]

Anticipation beats the tax...

if an elder is on the brink, a transfer can be accomplished which negates the tax!!

[SarahW]

Estate/death taxes are nothing but theft.

[Nitro]

Actually they are much more than that, imagine you left a small business behind and maybe your kids were interested in pursuing it...

they might not be able to as they would have to sell the business in order to cover the tax!!

That is more than theft, that is de-constructionism!!

New word??

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[Sunshine Sister]

The only really wealthy person I know did estate planning and bought insurance policies for the purpose of paying estate taxes. I don't know how much it cost them, but their kids will get the entire estate when the time comes. Insurers love it, wealthy people love it and the state loves it because they get their money without impoverishing the heirs. What's wrong with this picture?

[Still Thinking]

Insurers love it, wealthy people love it and the state loves it because they get their money without impoverishing the heirs. What's wrong with this picture?

Obviously, the premiums on this insurance plus investment returns, are greater than the expected payout, otherwise the insurers would go broke, so of course the insurers love it. As for the state, well duh, when did any group of taxpayer supported doofuses not enjoy taking people's money at gunpoint?

Why the heirs like it is the real question. If the premiums plus returns are greater than the return, why buy the insurance? Just invest what would have been the premiums so that that proportion of the inheritance is passed on in a highly liquid form, so the heirs can pay the taxes directly. As I see it, liquidity (and possibly better tax treatment of an insurance payout, as opposed to a direct inheritance) is the only benefit of the insurance policy anyway. As far as why the inheritors would like this better than the method I mentioned, I can only suspect the results of too much inbreeding by the yacht set.

That's what's wrong with this picture.

[Still Thinking]

WASHINGTON — The government's so-called "death tax" may be on its way out the door, but don't look for the tax bite to completely disappear. States, wary of losing out on easy money, are stepping into the breach to make sure they don't lose their share.

What the hell is this statement all about? Are the states presently receiving some benefit from the federal estate tax? Or does it just mean they think they see an opportunity to rip off those of us who sign their checks without having to take too much political heat over it?

[Nitro]

I can see from this visual that President Ronald Reagan has enhanced tax income at exactly the same time I was being promoted in the US Navy!!

1986 was a good year!!

[Nitro]

This one I am not catching on...

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[EggsAckley]

I'm afraid it's not quite as easy as you say. I'm in that position now, and there's really nothing to protect us. And that's after my folks spent years researching and developing the best possible ways. The answer is to repeal it completely, forever.....

"This tax penalizes those who aren’t clever enough to avoid it," Sepp said.

Not quite true. There are little bits and pieces that can be spared, but overall, they still steal as much as they can.

[OldDominion]

Estate/death taxes are nothing but theft

Absolutely correct...nothing but thievery. My mom's IRA was taxed at 39% when she died. I guess they collect it because they can...just like any dictatorship.

[PsyOp]

Great post. Thought you might appreciate the following thread.

Thoughts on Taxation