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Really? That's good to know....no chance of either of our moms' "estates" getting anywhere close to $10 million.
Yes, that's true. Our lawyer previously worked for IRS. We went to him to set up trusts for our kids so they wouldn't have to pay any taxes when they inherit. He told us we didn't need trusts because we weren't going to die with $10 million for the kids to split. I sure hope they weren't expecting that $10 million! lol
This morning I bought a pack of 20 daffodils for $4 at the grocery store. I divided them among three vases and now my apartment is full of colorful and bright spring cheer.
This morning I bought a pack of 20 daffodils for $4 at the grocery store. I divided them among three vases and now my apartment is full of colorful and bright spring cheer.
GREAT buy! Yellow flowers really brighten the house!
Why would anyone want to give away so much money to qualify for a Medicaid nursing home when they could use their money to be in a much nicer place? That's just bizarre.
My parents gave away money so that their estate never went over $1.2 million for the two of them because more than that the heirs would have to pay taxes on the money. Now that has been raised to $5 million per person, $10 million per couple. If a couple's estate is under $10 million they don't need trusts and they don't need to give money away. Their heirs will not have to pay taxes on their inheritances. My guess is the couple you are referencing had tax advisors who were advising them to give away money so their heirs didn't have to pay taxes on their inheritances and not so the couple could qualify for Medicaid. Rich people do not want to go to a Medicaid nursing home! Never, ever. Why would they?
Just a clarification on something.
No matter what the size of the estate is - if the parents' money is in tax free retirement accounts (that have never had taxes paid on them), then unless the heirs roll that money over into another sort of similar vehicle, they will pay taxes on these funds at disbursement.
And some funds require a yearly minimum disbursement anyway - even to the heirs - and the heirs will pay taxes each year on those disbursements.
In other words, if no taxes have been paid on the money yet, the Tax Man is going to get his cut - either from the parents or the heirs.
Really? That's good to know....no chance of either of our moms' "estates" getting anywhere close to $10 million.
See above post. Sometimes, depending on the type of accounts the money is in, heirs do pay taxes on some of it.
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Daffodils in the spring! March 24, 2017
