Woot! Gobama! Estate Measure Creates Window to Give Children Up To $10 Million Tax-Free!

[Karmadillo]

http://www.bloomberg.com/news/2010-12-14/estate-measure-creates-window-to-give-children-up-to-10-million-tax-free.html

Families would be able to make tax- free gifts to their children or others of as much as $10 million, an increase from the current limit of $2 million, under the tax-cut bill Congress is debating this week.

Beginning in 2011, an individual U.S. taxpayer’s lifetime gift-tax exclusion will jump to $5 million, up from $1 million currently, according to the legislation. Gifts from living parents allow taxpayers to transfer assets such as cash, stocks or shares of a business to their kids and let the value grow outside of the couple’s estate, said Jim Cundiff, an estate planning attorney with McDermott Will & Emery, who’s based in Chicago. Unifying the estate and gift tax exemptions is one of the biggest benefits in the measure, he said.

“You could transfer $10 million next year without paying any tax,” Cundiff said. “That’s a big tax-free gift. This benefit evaporates in two years, so take it while you can.” Parents may use trusts to give the money to descendants if they’re concerned about giving a lot of money directly to their children, he said.

Senate leaders released an agreement on Dec. 9 crafted by President Barack Obama and Republicans to keep existing tax rates through 2012 that also included the changes to estate and gift taxes. The bill, which is scheduled for a vote this week, sets a $5 million threshold for an individual or $10 million for a couple for both estate and gift-tax levies, with a top tax rate of 35 percent. The provisions would expire at the end of 2012, according to the legislation.

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[WingDinger]

1. Remind me again, why that is good?

[meegbear]

4. Because it helps the more fortunate ...

'tis the season.

[L. Coyote]

17. Sainted Barack ObamaClaus

http://www.dancingsantacard.com/en/?santa=279789

[Jackpine Radical]

2. I'm really glad to see that we're doing something to help

those poor little waifs whose inheritances will be less than 10 million. I mean, how would you like to be in line to inherit a paltry 9 million and the cruel gobmint comes along and wants to take some of it from you? I ask you, does that seem fair?

[Egnever]

3. except Obama got it to go to 35% instead of staying at 0

Wonder how much tax free they would have gotten then?

[emulatorloo]

5. Don't confuse me with the facts!

Yes that is why we hear so much bitching from Republicans about this.

Sure it could be higher, but 35% is a lot higher than 0%

[SOS]

11. Avoid the 35%

by transferring the wealth to the kids and into trusts before the Grim Reaper comes for Scrooge McDuck.
The tax attorneys for the elderly wealthy will stash that loot before paying any 35% tax.

[Karmadillo]

12. Don't confuse me with the facts!

nt

[blindpig]

6. "The rich are not like you and I,......" n/t

[Hawkowl]

14. Yes, they have more money...

And less scruples.

[stray cat]

7. There was no estate tax at all this entire year regardless of income

[unblock]

15. this is a higher one-time limit for the GIFT tax, not the estate tax

[TheKentuckian]

18. Yeah, but a one year boondoggle that is expiring and going old school

[patrice]

8. K & R

:-(

[Lucky 13]

9. Gotta love it. Protecting the millionaires at all costs. nt

[aquart]

10. Yayyy! More Paris Hiltons!

Just what this country needs.

[BrklynLiberal]

13. Bet alot of those tbaggers will make good use of this........... NOT!!!!!!!!!!!!!!!!

those stupid maroons..out marching and screaming for tax breaks for the rich..while they are barely making ends meet.

[lumberjack_jeff]

16. Cool! Now where can I find the $30 million? n/t

[Edweird]

19. What a relief. Right now the east wing of my summer estate is crowded with pallets of $100 bills.

This really takes a load off.

[wtmusic]

20. Tax-free? Only for the trust fund brats.

My kids will have to pay off their deficit in taxes for the next 50 years, but who's paying attention?

[supertruck97]

21. Anyone care to explain WHY estates should be taxed again at death/gifting?

Take a simple example:

I earn $100 at a job.

Government taxes it at the 35% rate.

That leaves me with $65.

I buy $65 worth of goods, paying a 6.5% sales tax, leaving me with goods worth $60.7.

Then I die, and I give those goods to my kids.

Explain why it's OK for the government to take ANOTHER bite out of that apple at 35%?

If I only give $60.7 worth of stuff to my kids, the government has already taken 39+% out of my earned income.

Now, with another 35% taken out of the 60.7, that leaves my kids with only $39.45 worth of stuff (35% of 60.7 is 21 and change).

So at that point, out of the $100 I originally, my kids only get to keep less than 40% of it.

Explain how that is fair???