[OldGuy]

Here's a problem most members here won't have to think about.

There are some people who end up collecting a huge estate. As they get older they become concerned about how to transfer their estate to their heirs and avoiding huge taxes on the transfer. If you give it away too fast, there is a gift tax involved. If the estate is significant, there is an estate tax involved.

In the US, you can give away up to $15000 per year to any single individual without the gift tax. Over your lifetime, you can give away up to 5 million total with no gift tax.

Once you kick the bucket, whatever is left behind is subject to an estate tax. Uncle Sam does not want you to just hand over your estate to your kids without them getting a huge bite.

Have you ever thought about having such a problem? One of my older brothers is facing such a dilemma right now. It appears the estate tax is going to be in the millions. He is planning how to hand out maximum gifts to each of his heirs each year before he jumps ship to cut down on the estate taxes later. Even handing out a half million a year to all of his heirs will hardly dent the estate tax. Oh the problems of the wealthy!

[Fergal]

We call it inheritance tax here in Ireland. Of all the taxes we have I personally feel this is one of the most unfair. The person leaving the inheritance in their will has already paid tax on earning that money. Whey should tax have to be paid again when they are passing it on to their loved ones?

This is not something I personally have to worry about at the moment. Maybe someday

One of my older brothers is facing such a dilemma right now. It appears the estate tax is going to be in the millions.

Well done to him, how did he make his money?

[OldGuy]

Well done to him, how did he make his money?

Believe it or not, he was the national top sales agent for Sears Aluminum Siding on residential properties combined with very profitable investments.

[mrki444]

What if he sold those real estates to those who he want to give? It tax for sell higher than for gift?

If he sold estate, later he can transfer them money back as gift or just buy them something else. Money would stay in family.

[OldGuy]

He has children and their spouses and all his grandchildren as his heirs and is working to split his estate to each of them. The US government allows a maximum gift of $15000 from any single individual to any other single individual each year. With the total number of heirs, he can give out nearly a half million per year tax free at least as long as he is still burning calories. He is not likely to live long enough to reach the lifetime maximum in gifts given the annual limitations and therein lies his problem.

The only real estate involved is his personal home and that part is already resolved. Even though it is worth well beyond a million by itself, that is the smallest part of his estate.

His dilemma is splitting up his massive investment portfolio and capital gains issues which is yet another tax issue in itself. When you get up to the total dollar value he is working with, it becomes a lot more complicated than anything us peons can figure out. The closest any of us normal broke peons will ever get to such a problem is just reading about it.

[Fergal]

You should show some brotherly love OldGuy and help him out by taking some of that money from him

[OldGuy]

You should show some brotherly love OldGuy and help him out by taking some of that money from him

Unfortunately, I'm not on his list of heirs so I'm not expecting anything from him although I guess he could surprise me. Like maybe a gift certificate at a favorite restaurant.