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I handle all my investments (approx $1.2 million not including real estate) on my own. Read a few books on investments and you'll know as much as an adviser.
As usual harford you need to do your own home work. The amt is triggered by income exceeding certain levels. The combination of your income which includes the capital gain and or your deductions can trigger it. once your income passes a certain level you clear the amt exemption level.
Why is it you choose to keep trying to prove others wrong in topics you know so little about ?
here is a nice easy explanation so you can understand why once again you are wrong.
The picture you posted has a NY estate tax starting at 1M and having a rate of 16%
There is no estate tax in FL for example. Buy a property there and say you spend >180 days there and have it as your permanenet residence.
You sound like a confused old man.
How is your trust set up? You can use life insurance to fund estate taxes you can set up an endowment.
There arent a whole lot of other ways to avoid estate tax. Living in a state with no estate tax is a lot smarter then spending 5K to set up a complicated plan.
Also think of all the income tax that is going down the tubes.
P.S. capital gains do not trigger the AMT tax. Do your homework please
Maybe you could do it to your children if you had any and move because it is cheaper but we have no intention of leaving our family for extended periods of time like our parents did to us when they moved away.
I handle all my investments (approx $1.2 million not including real estate) on my own. Read a few books on investments and you'll know as much as an adviser.
there is sooooooooo much more to financial planning than just investing. not being aware of tax implications or strategies or the effects of your retirement planning with getting your ss taxed , obama surcharges and rmds can all be quite painful to ones wealth. few couples even understand the social security system enough to make a valid decision as to when to file, how to treat spousal benefits or which ss stratagies to even use.
the problem is so few seek help from those that can save them a bundle and they end up being penny wise and pound foolish.as i explained above how few even understand that taking a large capital gain can trigger the amt tax on you if you plan it wrong and had choices of how to break it up..
Last edited by mathjak107; 03-21-2014 at 04:02 AM..
Maybe you could do it to your children if you had any and move because it is cheaper but we have no intention of leaving our family for extended periods of time like our parents did to us when they moved away.
I'd rather my parents moved, somewhere warmer like Florida. and we're close.
They'd visit in the summer, I'd have somewhere to go in the winter.
except it sucks to have your parents out of your daily life and for many grandparents who only see their grandchildren on vacations IT SUCKS EVEN MORE.
not something we would ever entertain. both my wife and I had our parents move to florida.
our parents missed the best part of all our daily lives. you can't put a price tag on that ,ever.
The picture you posted has a NY estate tax starting at 1M and having a rate of 16%
It's $1M per person, so effectively $2M for a married couple.
Aren't you affiliated with a life insurance company? You should call their advanced planning department and have one of the attorneys explain it to you.
Quote:
Originally Posted by hartford_renter
There is no estate tax in FL for example. Buy a property there and say you spend >180 days there and have it as your permanenet residence.
You sound like a confused old man.
How is your trust set up? You can use life insurance to fund estate taxes you can set up an endowment.
There arent a whole lot of other ways to avoid estate tax. Living in a state with no estate tax is a lot smarter then spending 5K to set up a complicated plan.
Also think of all the income tax that is going down the tubes.
Some things in life may be more important than taxes. Like not being a thousand miles away from your family for several months a year, perhaps. Or maybe he just likes living in NY.
Quote:
Originally Posted by hartford_renter
P.S. capital gains do not trigger the AMT tax. Do your homework please
I see mathjak's already explained your misunderstanding here.
It's $1M per person, so effectively $2M for a married couple.
Aren't you affiliated with a life insurance company? You should call their advanced planning department and have one of the attorneys explain it to you.
Some things in life may be more important than taxes. Like not being a thousand miles away from your family for several months a year, perhaps. Or maybe he just likes living in NY.
I see mathjak's already explained your misunderstanding here.
we can actually pass 1 million each while alive for a total of 2 million.
or we can gift with no estate taxes.
but if I die I lose my million and my wife can only pass 1 million. but by using a disclaimer trust she can flip a switch and split the estate in half putting my half in a trust and we get to pass 2 million again.
the trust makes it possible to pass the 2 million at death or else it is only one million. that trust is what we just had set up for us.
we can actually pass 1 million each while alive for a total of 2 million.
or we can gift with no estate taxes.
but if I die I lose my million and my wife can only pass 1 million. but by using a disclaimer trust she can flip a switch and split the estate in half putting my half in a trust and we get to pass 2 million again.
the trust makes it possible to pass the 2 million at death or else it is only one million. that trust is what we just had set up for us.
Right, at your death she disclaims up to $1M and instead it goes into a credit shelter trust, if necessary, thus using your $1M lifetime exemption. The credit shelter trust can still have her as a beneficiary but is structured so as to be part of your taxable estate for NY estate tax purposes (also for federal, but with the $5.34 million current lifetime exemption and "portability", traditional AB trust planning is less important than it used to be).
Regarding "a third million", are you talking lifetime gifting because NY state currently doesn't tax that? I'm not up on NY laws in particular, but from a federal standpoint the gift and estate tax lifetime exemptions have been equalized such that you can make well over $1M in lifetime gifts before being subject to federal gift tax - you can now go all the way up to the $5.34M lifetime exemption. You're effectively "using up" your exemption available at death if you do so, of course, but that may be preferable. So both you and your spouse could theoretically gift $4.34M each ($8.68M total) to your heirs, THEN use the AB trust structure to pass that last $2M NY estate tax-free (as well as fed estate tax free). So from a NY perspective, because those gifts don't count against your $1M lifetime state exemption, you could have over $10M total net worth go to your heirs tax free even in NY.
Of course, there's also the 14K annual exclusion amounts which you can use as well. And then there's GSTT if we're talking grandkids, but I've already violated my "if you're good at something never do it for free" rule in discussing all of this stuff this much. Which is why I won't discuss ILITs right now (which hartford renter touched on), although that would also be an option. As well as a dozen other things.
Circular 230 Disclaimer - I don't claim to know a thing. The above may all be random stuff that I googled and am parroting mindlessly. Talk to a real tax attorney/planner if your net worth has more than 1 comma in it. The IRS will make your heirs wince if you rely on incorrect intermwebz posts.
Last edited by synchronicity; 03-21-2014 at 02:55 PM..
ny tax law is very complex but i know so far we can gift up to a certain amount and it is not counted as part of the 2 million at death. i am not really up on that part . in fact one of the reasons we did go to see an estate attorney two weeks ago is because i rather have them take care of this end.
i do know there is a bill about to be signed to end that tax free gifting.
the only problem with these trusts is they do limit the principal to the surviving spouse . you really need to be sure your spouse will not need it.
ours is the higher of 5% of the principal or all the income. but she does not have to throw the switch to put it in effect if she feels she needs the money , that is the beauty of the discretionary trust we did.
we each have provisions in our wills for throwing that switch.
Last edited by mathjak107; 03-21-2014 at 05:04 PM..
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