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I'm sure the democrats would find away around that.
This is the absurdity of our tax system. Take with one hand and give with another. Why not just simplify? The answer is that then Congress would not have a way to preference certain classes of people.
In Britain, all trusts are not equal. You need really good advice and invariably the one giving the advice will have long gone before their mistakes surface. For instance. The trustees usually have to pay the tax if they sell or transfer assets on behalf of the beneficiary. Also, the rules for Capital Gains Tax on non-UK resident trusts are/can be horrendously complicated. The revenue will look into every tiny detail of a trust when it matures, just on the off chance that they could find a reason for a claim against it. Mainly because mistakes are so often made. Like the man said, take care out there.
Similar in the US. I recently retired from income tax preparation. Client received a generous inheritance from his aunt in a PAT (personal asset) trust. He insisted everything was tax free and that if there was any tax the trust would pay it. He was wrong.
And why shouldn't your father pay his fair share? You think only the rich get hit? The provisions of the TCJA, which doubled the exclusion rate for inheritance is set to expire in 2025. I had a client that just missed the federal taxes but got hit with state. Her estate was mostly her 401k and employer brokerage account. She was an administrative assistant, single, no children and worked her entire life. Now no matter what, taxes are collected on the 401k. If traditional, the heirs will pay it. ROTH, was already taxed. The money in the brokerage account was already taxed. Her home, property taxes were paid already. Why the additional tax because someone died?
Quite the opposite. The rich don't get hit. They have the money to hire good lawyers and accountants to avoid paying. Most people don't have that luxury. He still paid more than you or I in income taxes but he passed everything to us tax free.
Can't pick your parents, but you can get lucky I suppose.
I don't complain about paying taxes. I complain about the government stealing money from me to give to someone they deem more worthy, like, I don't know - illegal aliens for example. Do you believe the government should take money from me to support the lowlifes who have invaded this country? They are all criminals and that makes them lowlifes. Honest, hard working people simply do not break laws. They do not take what does not belong to them. When the government takes money from me (and yes you) at gunpoint to give it to others, that is not charity. It is theft. Plain and simple.
We were talking about inheritance taxes. I agree, inheritance taxes are punitive. But, this was the way the government decided to break up the immense accumulated wealth of what are commonly called the Robber Barons. There are ways to tax untaxed gains but leave the previously taxed assets alone. My point is that the tax code unfairly benefits the wealthy and you make my point. Lowering the rates benefits everyone who pays taxes but since the poor already don't pay taxes, they don't benefit from a lowering of rates. A flat tax is more fair, especially if even the poor pay something. Once you have skin in the game, you are more likely to vote rationally than for the politician who promises you the most free stuff. Getting rid of the deductions and entitlements part of the code is what will make it more fair. Also, simple enough to file every return using a postcard. The IRS already knows most of my income from the snitches who report it. I couldn't cheat on my taxes if I wanted to. They even know each and every trade made on my behalf from my investment accounts. Doesn't stop them from asking me to provide the detail when I file my return. No standard envelop for me if i file by mail. luckily TaxCut gets the details electronically. Otherwise it would take January to April to just type them in.
Yes, the rich do get hit. Remember when SCOTUS legalized same sex marriage? Do you know what case that was? Two ladies were legally married in their state but the feds didn't recognize it. One lady, with an estate valued over 5 million passed away. Her surviving spouse should not have to pay inheritance tax but the feds didn't recognize the marriage and tried to hit her with inheritance tax. She sued. She won. Now gay couples marriages are recognized in the whole country.
Show me one example where the rich person evaded taxes. I showed you what happened to the Wrigley heirs.
