Thread: Estate tax increase: Forgotten fiscal cliff issue

The estate tax is the most effed up tax there is. That is money being taxed for the third time. Once for income, then for investment income, then when you die.

Another reason why the rich are leaving this country and many of the other countries who are in acting similar policies. I really hope people stop this whole hate the rich soon before it's too late.

That is why im leaving for retirement. The whole eat the rich thing just disgusts me.

Im sorry, but when someone hates me because of the car I drive or the suit I wear they are hating me because I am successful amd they are not. They may say things like, do you think you are better than me? I would argue if they act that way I am better than them.

Right now I am an emtrepremeur, not a big shot millionare. I make 55k and am busting my ass. When I make it, it will be because I bust my ass. And if someone tries to water that down FUCK THEM. If a country tries to eat me, FUCK that country.

There are plenty of coumtries that will embrace successful and innovative people with open ar,s.

I just read an article about the how there is a massive migration of wealthy individuals to less hostile locations. The article talked about how many french Millionaires are moving to Switzerland and the UK before it is too late as the country is trying to pass a 75% tax for people who earn over 1mil a year. Many wealth Russians are also moving to the UK for similar reasons. Singapore has become an meca for eastern Millionaires due to their probusiness pro imigration stances and in fact they have the highest concentration of millionaires per capata in the world. US expatriation is more then double what it was a few years ago and the trend is not stopping.

Here is a fastlane business they interviewed a guy whos business it is to help wealthy individuals relocate abroad and protect their wealth.

The article also raises some major issues with the 1% paying 90+% of the taxes governments are at a serious risk if these people decide to leave.

Originally Posted by Pete799p

Many wealth Russians are also moving to the UK for similar reasons.

Actually Russia has a very tax friendly regime. There are corruption issues, but with a 13% flat tax and no capital gains tax, it is one of the better places in the world tax-wise.

The great thing about Singapore is they don't tax foreign source income, so many people, like Eduardo Saverin, move there and earn their money outside the country.

US expatriation for about 30 years up until 2008 was about 250-300 per year. In 2011 it was about 1800. So while that may seem like a small number, keep in mind those 1800 were not $10/h Home Depot employees.

These reasons, and many others are the reason I left the US.

Also one of the reasons this has been my busiest year ever.

2012 is an excellent year to establish your estate planning.

In 2012, the estate tax is 35% of estates over $5m. You can do a one time gift into a trust of $5m tax free.

In 2013 (unless something changes), the estate tax is 55% of estates over $1m. Huge change.

One other huge opportunity is to set up an offshore trust to hold you assets. This provides significant asset protection benefits as well as estate planning benefits.

For example, once the estate is offshore it no longer is part of your heirs taxable estate. There are some complicated planning requirements, but if done properly there are significant advantages.

Bobby

The only expatriation numbers which are reported are "covered" expats, not everyone who renounces their citizenship. the real numbers are MUCH bigger.

Where do you recommend setting up an offshore trust besides Cooks Island?

Originally Posted by CashFlowDepot

The only expatriation numbers which are reported are "covered" expats, not everyone who renounces their citizenship. the real numbers are MUCH bigger.

Agreed. There are a lot of people that just go off grid. Good point.

Originally Posted by CashFlowDepot

Where do you recommend setting up an offshore trust besides Cooks Island?

Typically I do Cook Islands or New Zealand.

Guys, c'mon, get real. So easy to beat the estate tax.

There's 3 months left, plenty of time, to take advantage of this years one-time lifetime gift estate exemption limits.

People that have the means can pass $5.12 million dollars ($10.24 million per married couple) to their family trust until December 31st estate tax free.

You can then easily turn that $10 million into $30-$60 million tax free. I've been doing it all year for my clients.

So when you and your spouse die, your beneficiaries get it all from the trust tax free.

I'm staying here in the good old USA with zero estate tax worries.

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Originally Posted by Sveke

Guys, c'mon, get real. So easy to beat the estate tax.

the issues are much larger than just estate tax. yes, that is one issue, but only one of many.

once you get out of the US like CashFlowDepot and myself, you really start to see the world in a different way.

Originally Posted by GlobalWealth

the issues are much larger than just estate tax. yes, that is one issue, but only one of many.

once you get out of the US like CashFlowDepot and myself, you really start to see the world in a different way.

Where are you now?

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Or you can store your wealth in the physical plane (stuff). Gold is good option.

"LAS VEGAS -- Authorities in Carson City recently made an astounding discovery in the home of a local recluse whose body was found in his residence. Walter Samaszko Jr. had left only $200 in his bank account. But hidden throughout the house were other treasures, including gold bars and coins valued at $7 million."

I don't think his family (if he had one) would of stressed over paying taxes on that $200

Originally Posted by Jake

Or you can store your wealth in the physical plane (stuff). Gold is good option.

"LAS VEGAS -- Authorities in Carson City recently made an astounding discovery in the home of a local recluse whose body was found in his residence. Walter Samaszko Jr. had left only $200 in his bank account. But hidden throughout the house were other treasures, including gold bars and coins valued at $7 million."

I don't think his family (if he had one) would of stressed over paying taxes on that $200

Dude, need to post facts, gold and precious metals are certainly counted toward your taxable estate at CURRENT market value.

With this years law, his family would be on the hook to the IRS for a cool $658,070.

Yeah they'd prob give a Fuck if I had to guess.

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"Hey, IRS, I just found $7million worth of gold in my Uncle's house" - said no person ever

Originally Posted by Jake

"Hey, IRS, I just found $7million worth of gold in my Uncle's house" - said no person ever

Haha, uuuhhhhh, how do you plan on spending $7,000,000 on gold quietly?

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Originally Posted by Jake

"Hey, IRS, I just found $7million worth of gold in my Uncle's house" - said no person ever

Exactly. What rational thinking family would pick up the phone and say, "hey guys, I found $7m in gold. is there some tax I need to pay here?"

bwahahahaha