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Can everyone afford Estate Planning?
Not true.
Once again, you prove your ignorance.
Not all small business owners are wealthy, or have enough extra revenue to pay for insurances not immediately necessary.
I see you are looking in a mirror again.
If you mean indoctrinated meaning that I have direct experience with estate planning and it's methods/benefits then you are right.
It's hilarious. You kiss wealthy peoples ass but only have the job and pay that you have due to a union and have no clue as to what the wealthy are about.
If you think estate taxes have not been on the mind of the wealthy for a long time or that they have not figured out ways to mitigate the impact then you are an idiot.
You are what you are: an idiot.
Can everyone afford Estate Planning?
Not true.
Once again, you prove your ignorance.
Not all small business owners are wealthy, or have enough extra revenue to pay for insurances not immediately necessary.
I see you are looking in a mirror again.
It's called proportion.
If your business is making a lot of money then it will increases it's valuation and you will have the means and need to handle it.
If your business is not making much money then it's not going to be worth all that much.
There is an exemption you know.
If you own a business worth $5m and you don't plan for it's future should you die unexpectedly then you are one dumb mother er.
If you own a taco truck worth $50k then you don't have to care.
I wonder what Scott thinks of your answer?
Scott seems like an intelligent guy. I imagine that if he has a net worth of over $1m then he has taken steps to insure his estate.
When it comes down to it i do not like discussing other people's business. Go play voyeur someplace else, flaglot.
OMG...
You that stupid? Really?
It's not hard to ac ulate a net worth of $1 million. Such a person may still be living on a limited income.
I have no idea. I don't pay attention. I've gotten accustomed to a certain amount going into my bank account every two weeks and I've learned to live and save off that.
uhhhh...guys...estate/gift tax currently doesn't kick in till 5 million per person and it's portable. Meaning if the husband dies and uses 4 million of his to inherit/gift stuff the remaining 1 million passes to his wife that now has a 6 million exemption.
I know we made under 100K... we have no kids yet though, so we don't get tax savings there... it's also possible I erred on the percentage, but I'm sure it was above 10%... don't feel like pulling my tax returns as it's irrelevant as to what rich people pay or not.
I don't make 11M per year. What I actually make is none of your business.
You asked what taxes I paid. I'm telling the percentage rather than the amount because I don't want you to know what I make.
I have said before that I have been very lucky and blessed, and I have worked hard and saved a ton and will not apologize to anyone for my annual income or the size of my estate.
I'm not ing about my taxes, why would anyone else be ing about the money I worked for?
Neither. gfy!
We have all our assets in a revocable trust that would automatically belong to the surviving spouse without even having to go through probate. It's not that expensive. I think I paid $2500 to do the whole package...husband/wife wills, living wills, POA's for living will agents for estate and body, and the trust itself. If the estate is of any size or complexity, that is less than it would cost for an attorney to walk it through probate.
Off on a lot of posts in here. WC was right you can't pay 35% in taxes. Our rates are mariginal which means once you cross a certain threshhold those dollars are taxed at 35%. Got to make a lot to get there and assumes no deductions. All dollars up to that point are taxed at a lower rate.
401k contributions are not limited to 15% of your income. The limit is 17k and now adjusts annually for inflation. In theory you could make 41k a year and put 17K into the plan. A much higher percentage than 15%.
Estate planning covers a lot of different areas. Tax planning is one of them. Unless your net estate is worth more than the exemption estate taxes don't apply. That exemtion is 5 mil per person. Cosmic Cowboy got this one right. The tricky thing here is that exemption amount has ranged from $0 up to its current level. Given its historical high level expect this to come down which will then catch more in the net. The average person should look into trusts for privacy purposes and if you want to get creative with how and when your assets are distributed. Living Wills and medical directives are also important and apply to everyone.
For those that are in line to pay estate, there are basically three things you can do to address it. Spend down the estate, give it away or find the most efficient way to pay for it. For those looking to incorporate number 3 life insurance is an effective way to do it.
It is crazy to me that so many of you are arguing to pay more to the government. It may not effect you directly but why not argue for the government to do a better job managing the dollars they are already get? Is there a worse manager of our money than the federal government?
Ours too.
But they are talking about changing the amount exempt (if Obama is elected - that has been discussed). Have you heard that?
There is some point at which I say "that's the kids' problem...not mine...but it really does bug me to see the likelihood of yet another layer of taxes on top of what has already been paid. I've already told my husband that I think if it gets to that point, we should start making bequests to charities in our children's names so that the estate comes under whatever limit they are suggesting.
I respectfully submit that you might want to check that 35% number as you only start to pay 35% at an adjusted gross income of $388,350. These are the 2012 tax rates. Up to that point you pay the rate indicated as you move up the brackets. (example, 10% on the first $17,400)
Tax Bracket Married Filing Jointly Single
10% Bracket $0 – $17,400 $0 – $8,700
15% Bracket $17,400 – $70,700 $8,700 – $35,350
25% Bracket $70,700 – $142,700 $35,350 – $85,650
28% Bracket $142,700 – $217,450 $85,650 – $178,650
33% Bracket $217,450 – $388,350 $178,650 – $388,350
35% Bracket Over $388,350 Over $388,350
Think I need a new CPA?
All of you guys with your charts...if you have no deductions ( no mortgage, no kids, nothing but charities), then you pay the max rate at each level until you get to that 35% level and then you keep paying that on every dollar after that. So as I mentioned to Ploto,
the rate may not be precisely 35 %, but it is so close as to be a distinction without a difference.
Damn...I was asked what I paid and I said it. Now I'm under attack for it.
Not attacking at all. Congrats to you guys for planning well for your retirement.
Although, I have to say, if I was retired and had y'alls kind of jack you sure wouldn't be seeing my happy ass posting on Spurstalk with these clowns...
I don't think anyone is attacking you. It seems you are misinformed. If your income is 400k then your tax with no dedections is $116,712. That figure divided into your income is 29.18%. I would get with your Financial Advisor and set up a metting with an estate attorney. There are charitable trust structures that can help with either income and/or estate taxes. If charities aren't the direction you want to go there are other structures that may help.
Sure. Thanks to Evay, TB, and all the others for paying my salary and taxes
i never had to take tax accounting and am just now starting my first "real job" so i wouldn't know
Democrats play the poor against the rich because a) the poor need more of the money they earn than rich people do and b) the rich are able to pay far more to support society.
It'd be nice to say "No one should pay over 20%!" But that would require radical cutting on current spending, which isn't probably feasible.
as far as taxes go though, the fact of the matter is that a progressive system discourages you from earning more as your tax rate goes up the more you make. this creates incentives for people to find creative ways to not pay what they are supposed to in the form of offshoring and loopholes...we should patch those up and make the system slightly regressive as an incentive to make more money (add more value to society) so that they don't try to make new loopholes. we don't have a problem with the tax rates people it's more the lack of wealthy people actually paying them. the problem with raising taxes is that mitt romney can get out of them but joe shmo doesn't have that option.
Who give a ? I paid a higher percentage of my income than he did.
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