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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.)
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.)
Biden is going to grab a big chunk of that money when he brought back the inheritance tax that Trump did away with . The government will get very rich taking what should go to the heirs.
Biden is going to grab a big chunk of that money when he brought back the inheritance tax that Trump did away with . The government will get very rich taking what should go to the heirs.
And under Trump, the IRA inheritance rules were changed so the person inheriting it has to withdraw all the money within 10 years... adding to their earned income for each of those years. That will put many into a much higher income tax bracket.
Biden is going to grab a big chunk of that money when he brought back the inheritance tax that Trump did away with . The government will get very rich taking what should go to the heirs.
i dont know the exact cutoff but its in the millions and doesnt even affect the average person just more rightwing half-factual BS
And under Trump, the IRA inheritance rules were changed so the person inheriting it has to withdraw all the money within 10 years... adding to their earned income for each of those years. That will put many into a much higher income tax bracket.
Traditional IRA withdrawals are taxed as regular income. The boomers who are leaving their wealth to their children in the coming decades all started with traditional IRAs. The Roths came much later so represent less of a boomer's portfolio.
Biden is going to grab a big chunk of that money when he brought back the inheritance tax that Trump did away with . The government will get very rich taking what should go to the heirs.
I never buy that Democrats like Biden, Pelosi, Schummer, etc; who have plenty in the bank account themselves, are going to pass a tax that move a big chunk of their money to the government. If I recall correctly, $10 million is the cut off where anything below you don't have to worry about an inheritance tax. And if it's over $10M, there are plenty of ways to bypass the tax like using a trust; that the Democrats are very happy to let slide.
So, if it's under $10M you got nothing to worry. If it's over $10M, you can more than afford to hire someone to help you evade the tax legally. To me, this tax is really all ado about nothing.
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