Why didn’t Ted Kennedy share his wealth by paying inheritance taxes? He keeps his money in trust funds to?
… shelter it.
In the first place, Inheritance Tax is a state tax levied on the recipient of an Inheritance. Estate Tax is, usually, a Federal Tax levied on all Estates valued at more than $3.5 million in 2009 (in 2010, there is no Estate Tax and in 2011 the exclusion returns to $1 million as signed by President Bush in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) which triggered a 10-year estate tax phase-out plan. From 2001 to 2009, the portion of an estate exempt from tax was gradually increased and the tax rate was decreased. If the law is allowed to stand, in 2010 there will be no estate tax at all, just for one year. Congress will have to decide whether to make the repeal permanent. If not, in 2011 the tax would look similar to its 2001 structure with the first $1 million of an estate exempt and the tax rate at 55 percent.).
Neither Maine nor Massachusetts have Inheritance Tax so no one will have to pay Inheritance Tax in those states, Kennedy or not.
Massachusetts does have a limited Estate Tax for estates valued at more than $1 million so some tax will have to be paid there.
As far as Federal Estate Tax goes, it doesn’t matter if the estate is in a bank, a Trust, or under the mattress, if the estate is valued at more than $3.5 million then every dollar over the $3,5 million will be taxed, at Federal Estate Tax rate of 45%. Just because a person puts their assets in a Trust does not relieve them, or their Trust, of their obligation to pay their taxes. Trusts also must pay taxes every year on the incomes that they earn. The difference is that wealthy people buy enough life insurance (the proceeds of which are not taxable if paid to an individual) to pay for the Federal Estate Tax owed by their estate. That way, the tax is paid and their estate stays intact to be passed on to their heirs.
January 31st, 2010 at 12:44 pm
Just like you could do with your money, if you so choose.
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January 31st, 2010 at 12:56 pm
yea i wonder that too, i also wonder why he did not take a pill and get counseling like he and obama want to push on america instead he went and had the best doctors money could buy to prolong his 14 month stay. and im glad he did but he should practice what he and obama are pushing. you lived long enough brother just pill and chill
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January 31st, 2010 at 1:37 pm
I’m a Democrat, but you make an excellent point.
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January 31st, 2010 at 1:48 pm
Socialism for everyone but the Socialists…………
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January 31st, 2010 at 1:58 pm
In the first place, Inheritance Tax is a state tax levied on the recipient of an Inheritance. Estate Tax is, usually, a Federal Tax levied on all Estates valued at more than $3.5 million in 2009 (in 2010, there is no Estate Tax and in 2011 the exclusion returns to $1 million as signed by President Bush in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) which triggered a 10-year estate tax phase-out plan. From 2001 to 2009, the portion of an estate exempt from tax was gradually increased and the tax rate was decreased. If the law is allowed to stand, in 2010 there will be no estate tax at all, just for one year. Congress will have to decide whether to make the repeal permanent. If not, in 2011 the tax would look similar to its 2001 structure with the first $1 million of an estate exempt and the tax rate at 55 percent.).
Neither Maine nor Massachusetts have Inheritance Tax so no one will have to pay Inheritance Tax in those states, Kennedy or not.
Massachusetts does have a limited Estate Tax for estates valued at more than $1 million so some tax will have to be paid there.
As far as Federal Estate Tax goes, it doesn’t matter if the estate is in a bank, a Trust, or under the mattress, if the estate is valued at more than $3.5 million then every dollar over the $3,5 million will be taxed, at Federal Estate Tax rate of 45%. Just because a person puts their assets in a Trust does not relieve them, or their Trust, of their obligation to pay their taxes. Trusts also must pay taxes every year on the incomes that they earn. The difference is that wealthy people buy enough life insurance (the proceeds of which are not taxable if paid to an individual) to pay for the Federal Estate Tax owed by their estate. That way, the tax is paid and their estate stays intact to be passed on to their heirs.
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