Basics of estate tax

Overview of the inheritance tax

[@jamielizabacani]

Thanks for this.. very helpful.. this is much easier to understand than reading my book

[@rEguLargUide]

I'm here because of the politics in my country. Thanks for the video.

[@ManjitSingh-eh5yb]

Nicely explained Thanks

[@kevinmccarthy4806]

Love the vids! Extremely helpful

[@rubenquintero76]

Great job explaining this. Question: does this change at all if the assets/estate are overseas?

[@paulodasilva3977]

Thank you for this video. Nicely explained.

[@kpopcake19]

You have a nice voice......... (:

[@olivertwisted1]

What if you have 10 million and you are leaving it to your son and your daughter? Do they each get the 5 mill exempt because 5 mill is going to each, or do they tax the 10 million before cutting it in half?

[@mjselfmadehimself]

thank you for explaining, good job!

[@buckifan5455]

Government always has their hands in your pocket!

[@Charles-pf7zy]

You ahouldnt have the right to get rich off the pockets of your ancestors. Equal opportunity, equal merit.

[@buckifan5455]

@@Charles-pf7zy ...........just curious, if I build a nice company from scratch and it becomes successful, I accumulate stocks, investments, an account full of cash, and a nice home, who should get it? You don't think those should be passed down to my son who was a big motivation into becoming successful to have something to pass down to him? And if not him why not and who should receive the benefits of my hard work?

[@Charles-pf7zy]

@@buckifan5455 why can’t it be for example 10 million instead of 10 billion? I’m gonna flip the script. Private property is a function of the monopoly on violence, we the people pay for the police and military. Why should *we* pay to enforce the passing down of massive amounts of wealth?

[@Charles-pf7zy]

@@buckifan5455 why should I have to pay to keep homeless people out of one of your 10 mansions spread across the country? You will probably say because your business benefited the country. But the relationship was mutual. Your theoretical billionaire dollar business thrived off protection of trade routes paid by the citizens, thrived off of the resources gained from military imperialism, thrived off of the monetary system, thrived off of minimum wage workers because of union busting. Did you do more for the country than the country did for you? Why should the profit (which largely comes from exploiting market inefficiencies to gather more money than you spend) be passed down to someone who did nothing yet, or at least not proportionally. When you phrase it like that private property (different from personal property) is akin to indentured servitude The law of themodymaics says matter cannot be created nor destroyed. The wealth accumulate did not come from nowhere. It came from labor (yes your initial investment of time and money counts too). And overall, 10 billion excess was extracted in value, but you argue that your son who had no part in that value should be granted that wealth ultimately through state force and effort. That sounds like aristocratic dictatorship to me.

[@aliciahill2010]

Great explanation!!! thank you

[@TheSamoriXperience]

Sal, I'd like to know for what legitimate reason should the govt be able to tax the life savings of someone who has died and is passing the money/wealth to their children or immediate Family members? I can't think of a reason why the govt should receive $350 mil of a billionaire's fortune when they die. Please explain.

[@MegaSpooney]

TheSamoriXperience it's about trying to combat inequality by not allowing vast sums of money to continue to concentrate into fewer and fewer hands. It doesn't stop people from being wildly rich, it just asks the wildly rich to pay their fair share in maintaining the society. It's based on the premise that we care about each other and are willing to each pay our fair share to sustain a decent way of life for our society

[@mar504]

MegaSpooney, many would argue that the estate tax on the successful are not a "fair share" and that wealth redistribution is not fair at all. In fact, it is a punishment for success. You said fair share several times, is it fair that the top 1% pays more taxes than the bottom 90% combined? Now there is an expectation that their family pays another 40% on top of that? I'll never have enough money to need to worry about the estate tax, but there is nothing fair about telling someone "you have too much, I deserve some of that even though I've done nothing to earn it".

[@freddy.st16]

@@mar504 That is the biggest fallacy ever. If high tax rates are going to scare you out of being rich, then chances are you were never going to be rich in the first place. The top 10% are the ones that the most out of your current system, they are literally allowed to rig the rules of the "free market" in their favor. This whole idea of meritocracy is a myth. And that's the reason many billionaires are feeling like they aren't paying their fair share in taxes.

[@djd829]

@@freddy.st16 Sorry, I've read both of your(with @mar504) comments back and forth, several times, just in case I missed it. Where did the fallacy come in? You can say they've submitted a fallacy, but then you've just injected your own opinion, just as they did. Neither of them were legitimate arguments, just opinions. For the thing you purport to be fact, you haven't even sourced. I'm far within your top 10% and I don't even know what you were asserting, and if you think I had any power to "rig the system", you've been lied to.

[@brianchromero5431]

@@djd829 sorry, times almost running out. The consolidation of wealth will come to an end.

[@Mangaman1100]

3:04 Unless the government thinks you're, "Worth" more than you actually have, then that Death Tax is gonna give your kids a really bad time...

[@joshreichard9908]

this doesn't include state's tax it's only discussing the federal.

[@paulasakuma6059]

Hey! As of nov 9, I think the exemption was raised from 5.5 million to 11 million

[@paulasakuma6059]

but all still holds, amazing video! thanks!

[@HeritageWealthPlanning]

careful of a STATE estate tax now, though

[@streetfighter1234ish]

i live in ny state my father passed he had a pension og 4000 federal took out 800 already so its a estate inhertance will the state take out also

[@meisam14]

Why would the "distribution of wealth" be applicable to inheritance? What is the underlying rationale?

[@gerardgmz]

Polymath - no rationale needed.... my guess is they believe inheritance is white supremacy.

[@jayp4772]

What happened to no free hand-outs? Guess that argument goes out the window with the rich. The owner of the estate with Inheritance Laws in Community Property States could direct the passing of their portion of the estate to anyone, without family gaining a right to inheritance. So if they gave it away to a friend maybe because they didn't have children to begin with they just got a free hand-out right? I thought those were no , no's.

[@jeffghant4760]

Polymath They say the estate tax helps prevent the rise of aristocracies in America.

[@ultrastoat3298]

You arnt looking at taxes correctly. Taxes are collected when money changes ownership.

[@AriVovp]

You should put the country this course apply too as well

[@ldpy33]

What are applicable credit amounts? Gift and Estate tax credit equivalent of $4,625,800 each (2021)?

[@sadudas11]

I need to know this too, for my class. Did you ever get an answer?

[@SunMaximus]

What about state and local taxes?

[@TwilightHian]

I know this is just the "basics", but what if you divide your estate among multiple people? Does the 5m exemption get divided or does each person get 5m exempt? I don't think I'll ever have to worry about that but still curious.

[@nasalspray8646]

TwilightHian not sure but i'd think the 5 mil would be a 1 time thing. I don't see the government making an exception for multiple inheritors.

[@HeritageWealthPlanning]

way late on the reply...4 years late! Take whatever you own and that's your estate. Regardless of who gets the money. You still may need to worry about a state estate tax. Look at MA for instance.

[@sandeepvk]

question is how do u make a billion dollars ?

[@TakashiNippon]

What if ur not a US PERSON, but u have stocks... does the 5M exclusion apply for foreigners?

[@gerardgmz]

What a horrible tax! Hope to God Trump ends it.

[@jeffghant4760]

gerardgmz They say the estate tax helps prevent the rise of aristocracies in America.

[@klikitzsmith8416]

You sound worried like you must be super rich lol

[@Serik.Beksultan2012]

jeff ghant except they always try to avoid it.

[@trolljones4386]

I am guessing you are the son of a Multi Millionarire who cries about how Daddy will get taxed at a reasonable rate.

[@Serik.Beksultan2012]

troll jones wealthy people know how to avoid this tax .

[@BRAgi-zs3mf]

Beware. This is for 2011 Tax Code. In 2023 the numbers are quite different.

[@azndude963]

What happens when u have an irrevocable trust involved?

[@HeritageWealthPlanning]

Is the trust funded? is the first question to answer. If so, and it's clearly out of your estate, it PROBABLY won't be included in your tax. But if you retain any type of control over it, even if you're not the trustee, the IRS isn't stupid and they'll certainly investigate. Also did you file a gift tax form, 709, to show the gift of the property to the trust? That's a good thing to do, as a sort of proof that you relinquished control of the property. Does the irrevocable trust have its own tax id AND files a 1041? Lots going on here...

[@Diogenesthedog0]

So Government takes 35% for no reason. Keep in mind that Government also charges Taxes on my Income and Saving as well.

[@samsonsoturian6013]

Shut up. Get drafted.

[@pathfinder1273]

This video would have been half as long if he didn't keep repeating himself.