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The greatest wealth transfer occured more than 100 years ago with one of the Euro immigration waves. Before that it was gentile landowners. Then certain demographic arrived, Federal Reserve created, and from that point till now, bankers became the wealthiest. They have a far higher denomination of currency than anyone prior.
The wealth transfer Biden wants is your money going into big federal government hands. America's credit card is now in the hands of the socialists and it will bring Americans into poverty with big wasteful government entities and much of it going into corrupt hands.
Excerpts from above linked article, my italics and bold:
At the end of this year’s first quarter, Americans age 70 and above had a net worth of nearly $35 trillion, according to Federal Reserve data. That amounts to 27% of all U.S. wealth, up from 20% three decades ago. Their wealth is equal to 157% of U.S. gross domestic product, more than double the proportion 30 years ago, federal data show.
Now they have started parceling it out to their heirs and others, unleashing a torrent of economic activity including buying homes, starting businesses and giving to charity. [snip]
Older generations will hand down some $70 trillion between 2018 and 2042, according to research and consulting firm Cerulli Associates. Roughly $61 trillion will go to heirs—increasingly millennials and Generation Xers—with the balance going to philanthropy. [snip]
The average inheritance in 2019 was $212,854, up 45% from an inflation-adjusted $146,844 in 1998, according to an analysis of Fed data by economists at a unit of Capital One Financial Corp.
And people aren’t waiting until they die. Annual gifts taxpayers reported to the Internal Revenue Service—a fraction of the gifts that flow outside the tax system—rose to $75 billion in 2016, from an inflation-adjusted $45 billion in 2010. Over that period, the amount that people could give away without paying taxes on gifts rose from $1 million to more than $5 million for individuals, and from $2 million to more than $10 million for couples.
END EXCERPTS
Comment to bold: I wonder what the median inheritance amount was. (This average figure is probably inflated because, to name just one example stated in the article, Warren Buffett is worth roughly $100 billion. according to Forbes.. Btw, just last week, according to the above linked WSJ article, Buffett gave $4.1 billion to five charities.)
That article is not being very specific about who has the wealth and who is inheriting it. Like if I say the top 10% have most wealth, I am not wrong. But I could be more precise and say top 1%.
In regards to who is receiving, if the children or grandchildren are all under 30, then I can say the under 30 demographic are going to inherit all this wealth as long as I dont name individuals doing the transfer. I can just be very general while not being wrong.
Last edited by NJ Brazen_3133; 07-03-2021 at 11:54 AM..
Yeah, Trump’s giant death tax is going to come as a surprise to many. Under the old rules, you could have a pretty significant balance and if the RMD was calculated on a 25+ year expected additional life span, it was still pretty easy to minimize taxes on it. A 10 year draw down, not so much.
This totally explains why the democrats want to start taxing inheritances. They should leave that money alone, it has already been taxed several times.
Estate tax begins at $10M for married couples, inheritance has always been taxed, nothing new.
Estate tax begins at $10M for married couples, inheritance has always been taxed, nothing new.
Hate to tell you, but Biden is planning to eliminate step up basis beginning at $1 million. That means that an average middle class couple earning around $100,000, who bought a house 40 years ago for $125,000 now worth $700,000, plus another $700,000 in investments from responsibly putting 15% into the 401B, will have taxes increased. They’ll owe taxes on $400,000 worth of gains.
What happened to Biden’s promise that there would be no tax increases on those under $400k?
For defined contribution plan participants, or Individual Retirement Account (IRA) owners, who die after December 31, 2019, (with a delayed effective date for certain collectively bargained plans), the SECURE Act requires the entire balance of the participant's account be distributed within ten years. There is an exception for a surviving spouse, a child who has not reached the age of majority, a disabled or chronically ill person or a person not more than ten years younger than the employee or IRA account owner. The new 10-year rule applies regardless of whether the participant dies before, on, or after, the required beginning date, now age 72.
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