Re: how to compare living standards


"tonyp" <tonyp@xxxxxxxxxxxxx> wrote in message
news:1P2dnZvgYMKxQKfZRVn-gw@xxxxxxxxxx

"William F Hummel" <wfhummel@xxxxxxxxxxx> wrote

On the death of the second spouse, the successor trustee
(whoever you have named in the trust) will terminate
by the distributing the assets to the beneficiaries
after first paying the estate tax on that portion
of the survivor trust that exceeds the exemption amount.

Hi,

Earlier we had the claim:

As of 2004, the IRS was collecting about $25billion a year in estate tax.
Who do you figure paid _that_? If it is soooo easy to avoid the estate
tax,
why has God's Own Party fought tooth and nail for years to repeal it?

Just yesterday I read in Barbara Quirk column in out paper that:

"There are huge amounts of wealth being passed from one generation to the
next for those few in the upper 7 %--some $200 billion annually."

So would that mean the average government take on that upper 7% would be
12.5% of the amount being transferred, assuming that no money was collected
from the lower 93%? If the estate tax is supposed to be at or over 50% of
money over the exemption limit, and these are large estates, it sounds to me
like someone is finding some loopholes.

Or maybe "trusts" play less of a role for the very rich than Foundations? I
mean could I create a foundation for my kids to run (if I were rich)?


1) The difference between "trustee" and "beneficiary". Jim seemed to
conflate the two.

Sorry. I know they are different. But for the trusts that I know about
they are mostly the same people.

2) The unified lifetime gift-and-estate tax exemption. There is an
intimate
tie between the gift tax and the estate tax, as both tax lawyers and the
IRS
understand.

-- TP


??? This I don't understand. If I leave my estate to my kids, do I need to
deduct from the exemption limit all of the allowance I gave the kids? Are
there any records kept of money that I give to anyone, including my own
kids? (I mean money under the annual limit that would draw a tax)



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jim blair (jeblair@xxxxxxxx) Madison Wisconsin USA.
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