Comments on: 2010 Is a Good Year To Die — If You’re Rich http://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html Making change one penny at a time Mon, 31 Oct 2011 10:32:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rickhttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-5395 Rick Thu, 22 Jul 2010 16:45:28 +0000 http://www.rainydaysaver.net/?p=1100#comment-5395 Will the estate be worth more than $3.5M? That was last year's estate tax exemption (next year's isn't definite), so you'd only pay estate tax on the amount over that. Even in Boston, that seems high for the price of a house. 2010 may have no estate tax, but the method of calculating capital gains has also changed. Normally when the estate tax is in place, the basis used to calculate capital gains on inherited property is set to be the value of the property on the date of death (called a step up in basis, allowing you to escape capital gains on inherited property). This year, the basis on inherited property is the value(s) that your deceased paid plus an aggregate $1.3M step up in basis. That means for this year, estates valued between $1.3M and $3.5 will get hit with significant federal capital gains taxes whereas last year (under the estate tax) they would have paid no federal tax. (State laws vary.) Estates under $1.3M still get away without federal tax. To me, it seems a shame that people are focused on the penalizing effects of estate tax on estates worth more than $3.5M, when estates less than $3.5M are being penalized this year. I'd suggest that $1.3M-$3.5M are precisely the size estates that correspond to many small businesses (including family farms). Will the estate be worth more than $3.5M? That was last year’s estate tax exemption (next year’s isn’t definite), so you’d only pay estate tax on the amount over that. Even in Boston, that seems high for the price of a house. 2010 may have no estate tax, but the method of calculating capital gains has also changed. Normally when the estate tax is in place, the basis used to calculate capital gains on inherited property is set to be the value of the property on the date of death (called a step up in basis, allowing you to escape capital gains on inherited property). This year, the basis on inherited property is the value(s) that your deceased paid plus an aggregate $1.3M step up in basis. That means for this year, estates valued between $1.3M and $3.5 will get hit with significant federal capital gains taxes whereas last year (under the estate tax) they would have paid no federal tax. (State laws vary.) Estates under $1.3M still get away without federal tax.

To me, it seems a shame that people are focused on the penalizing effects of estate tax on estates worth more than $3.5M, when estates less than $3.5M are being penalized this year. I’d suggest that $1.3M-$3.5M are precisely the size estates that correspond to many small businesses (including family farms).

]]> By: Yakezie Carnival | Ultimate Money Blog- Save Green and Live Green!http://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-5213 Yakezie Carnival | Ultimate Money Blog- Save Green and Live Green! Mon, 19 Jul 2010 11:00:08 +0000 http://www.rainydaysaver.net/?p=1100#comment-5213 [...] 2010 Is a Good Year To Die — If You’re Rich @ Rainy Day Saver [...] [...] 2010 Is a Good Year To Die — If You’re Rich @ Rainy Day Saver [...]

]]> By: Nicolehttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-5107 Nicole Sat, 17 Jul 2010 16:09:13 +0000 http://www.rainydaysaver.net/?p=1100#comment-5107 @Squirrelers: I'm a fan of passing the wealth along, too (assuming I have any left by the time I kick the bucket). And Steinbrenner definitely made things interesting! @Squirrelers: I’m a fan of passing the wealth along, too (assuming I have any left by the time I kick the bucket). And Steinbrenner definitely made things interesting!

]]> By: Squirrelershttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-5068 Squirrelers Sat, 17 Jul 2010 00:12:32 +0000 http://www.rainydaysaver.net/?p=1100#comment-5068 Pretty amazing, isn't it? 55%! All that hard work, and poof! It's gone. I'm definitely a believer in passing down money to the subsequent generations, rather than "spending it all on myself" approach. Of course, one way or another, much of that money will be spent anyway. Makes one want to revisit thoughts, and maybe spend it on loved ones before you pass away, periodically over time. That said, I really hope I'm a long way from worrying about this directly! By the way - I live in Chicago, so while I'm not a Yankee fan, I thought Steinbrenner was great for baseball and was a guy who went all out to win. Entertaining too...especially when spoofed on Seinfeld! Pretty amazing, isn’t it? 55%! All that hard work, and poof! It’s gone.

I’m definitely a believer in passing down money to the subsequent generations, rather than “spending it all on myself” approach. Of course, one way or another, much of that money will be spent anyway. Makes one want to revisit thoughts, and maybe spend it on loved ones before you pass away, periodically over time.

That said, I really hope I’m a long way from worrying about this directly!

By the way – I live in Chicago, so while I’m not a Yankee fan, I thought Steinbrenner was great for baseball and was a guy who went all out to win. Entertaining too…especially when spoofed on Seinfeld!

]]> By: allyhttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-5003 ally Thu, 15 Jul 2010 22:50:52 +0000 http://www.rainydaysaver.net/?p=1100#comment-5003 Man, I wish someone I hardly know would pass away and leave me a few mill, damn I'll take like $500. Man, I wish someone I hardly know would pass away and leave me a few mill, damn I’ll take like $500.

]]> By: MainlineMomhttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-4995 MainlineMom Thu, 15 Jul 2010 20:15:29 +0000 http://www.rainydaysaver.net/?p=1100#comment-4995 This is gonna affect me bigtime. And I HATE it. I'm the executor of my 90 year old grandparents estate, half of which is property. My grandmother keeps saying how she doesn't want anyone to sell her childhood home in Boston. Well guess what Grandma, thanks to the Dems I will have to sell that house in order to divide up the 45% of what's left as you have stipulated. Grrr... This is gonna affect me bigtime. And I HATE it. I’m the executor of my 90 year old grandparents estate, half of which is property. My grandmother keeps saying how she doesn’t want anyone to sell her childhood home in Boston. Well guess what Grandma, thanks to the Dems I will have to sell that house in order to divide up the 45% of what’s left as you have stipulated. Grrr…

]]> By: Tweets that mention 2010 Is a Good Year To Die — If Youre Rich • Rainy-Day Saver -- Topsy.comhttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-4994 Tweets that mention 2010 Is a Good Year To Die — If Youre Rich • Rainy-Day Saver -- Topsy.com Thu, 15 Jul 2010 20:04:01 +0000 http://www.rainydaysaver.net/?p=1100#comment-4994 [...] This post was mentioned on Twitter by Nicole Canfora Lupo, Jennifer Jennings. Jennifer Jennings said: 2010 Is a Good Year To Die -- If You're Rich - http://b2l.me/aatyse [...] [...] This post was mentioned on Twitter by Nicole Canfora Lupo, Jennifer Jennings. Jennifer Jennings said: 2010 Is a Good Year To Die — If You're Rich – http://b2l.me/aatyse [...]

]]> By: Nicolehttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-4973 Nicole Thu, 15 Jul 2010 16:19:21 +0000 http://www.rainydaysaver.net/?p=1100#comment-4973 @BITFS: What I just found out is that my state, NJ, has its own estate tax rules - and the exemption is only $675,000! @BITFS: What I just found out is that my state, NJ, has its own estate tax rules – and the exemption is only $675,000!

]]> By: Budgeting in the Fun Stuffhttp://www.rainydaysaver.net/2010/07/2010-good-year-die-rich.html#comment-4967 Budgeting in the Fun Stuff Thu, 15 Jul 2010 14:54:05 +0000 http://www.rainydaysaver.net/?p=1100#comment-4967 I think the estate tax is CRAZY high! I won't die with enough for it to matter probably, but if I earn a billion dollars, I should be able to leave it to whoever I want...it shouldn't get taxed twice...that just seems wrong. I understand a bunch of our tax revenue comes from this and that getting rid of it would mean raising taxes for everybody else, which would suck, but doesn't it seem a little unfair to have your money taxed twice and the second time is more than half?! I think the estate tax is CRAZY high! I won’t die with enough for it to matter probably, but if I earn a billion dollars, I should be able to leave it to whoever I want…it shouldn’t get taxed twice…that just seems wrong.

I understand a bunch of our tax revenue comes from this and that getting rid of it would mean raising taxes for everybody else, which would suck, but doesn’t it seem a little unfair to have your money taxed twice and the second time is more than half?!

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