Comments on: Death Still Certain

By: Donna

Donna — Wed, 09 Jun 2010 17:12:32 +0000

Absolutely, let’s start planning the next one. 🙂

By: Larry

Larry — Wed, 09 Jun 2010 16:31:08 +0000

Donna said: Bottom line, SPEND YOUR MONEY AND ENJOY YOUR LIFE.

More European vacations?

By: Donna

Donna — Wed, 09 Jun 2010 15:14:16 +0000

Yes, you’re right Larry, the capital gains rates are much lower than FET. For 2010 it remains at 15%, but is increasing to 20% in 2011. And, yes VEe, 55% is an extremely high rate of tax on assets you’ve worked hard for your whole life. The rate was 55% back in 2001 but most people don’t realize there are such high death taxes, federal and state, until they lose a loved one. Bottom line, SPEND YOUR MONEY AND ENJOY YOUR LIFE. Don’t leave it to the government.

By: Larry

Larry — Wed, 09 Jun 2010 14:36:28 +0000

I’m with you VEe! I think it’s ridiculous, but I think knowing that taxes are being imposed fairly helps to ease the blow. If I had a parent die on December 31st of 2009 and paid 4 billion in tax I think I would be a little bitter knowing that on the following day others are paying zero.

By: VEe!

VEe! — Wed, 09 Jun 2010 14:29:06 +0000

While I don’t think the estate tax should be repealed 55 percent sounds extremely harsh.

By: Larry

Larry — Wed, 09 Jun 2010 14:27:50 +0000

Goes to show you how cynical I am that instead of thinking about the loss of revenue to the treasury or the windfall to the families, my mind immediately goes to how many plugs will be pulled to save on tax.

By: Larry

Larry — Wed, 09 Jun 2010 14:14:43 +0000

Thanks Da for your expertise, you know your stuff. Correct me if I’m wrong, but a long term capitol gain on the growth of assets, will only be a small percentage of what the estate tax would have been on the whole estate (assets and growth)?

BTW, thanks for catching that typo, I meant to say 2010.

By: Donna

Donna — Wed, 09 Jun 2010 13:57:47 +0000

No one gets away paying nothing. They won’t get away totally tax free. Because there is no Federal Estate Tax, his assets, ie. stock, bonds, real estate, won’t get a “stepped-up” tax cost basis (date of death value) so either his estate or his heirs will be subject to large capital gains when they sell the assets.

And as far as pulling the plug, I would think more plugs would be pulled during 2010!!! Heirs get very greedy…..

By: sue

sue — Wed, 09 Jun 2010 13:38:24 +0000

The quiet, knowing smile on your portrait about says it all.