Why Capital Gains Tax Planning Matters More Than Estate Tax Strategies

[@mdp1087]

Great Video and maybe a wake-up video on Estates and Capital Gain Tax Hits!

[@williammitchell3271]

Seems like this could have been explained more simply by talking about the tax laws today. I got the message (protect two step ups in basis, one for each spouse) but going back to 2011 seems unnecessary. Just a thought, but I appreciate what Paul is doing here.

[@user-pl4eu5jc5w]

Thanks for the explanations!

[@davidross976]

Thanks for posting this video. I learned a lot.

[@americasestateplanninglawy1946]

Glad it was helpful!

[@jdgolf499]

You drastically overstated the impact of Capital Gains on people! Show the tax table for gains. Filing a joint return, with a standard deduction of almost $30,000, you can have income of almost $130,000 to pay 0% Capital fains. 15% goes up to over $600,000 in income, so VERY FEW people will ever pay 20% during their lifetime!

[@pcash4088]

How does state tax fit into this strategy. If the states estate tax exemption is much lower like in Illinois is it still better for the deceased spouse to give his appreciated assets to the surviving spouse? I guess it depends if cap gain tax projection is higher than state estate tax?

[@ericr2zz]

A non-judicial settlement agreement will solve the surviving spouse capital gains issue if monies are in a QTIP trust.

[@brettwiley9357]

My husband is a beneficiary of one of these martial deduction/q-tip trusts from his grandfather who passed in 2010. We researched and determined that he will not get a step up in basis when his grandmother (step GM really) passes. While the GM is alive, is there anything that can be done to fix this future capital gains mess? The trust account, valued about $4M today, is well below the estate tax exemption. Not even close to $13M. She is entitled to income, but can’t take principal. Is there no “fix” for this? Is there anyway to get the step up back??

[@yHsXTR]

Thanks for sharing such valuable information! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). Could you explain how to move them to Binance?

[@TheSuzyfick]

Hello from Illinois

[@graciethecat2181]

“Rules have changed.” I need to watch this multiple times.

[@IBCjohnfoxward]

How common is it for spouses to have separate estates?

[@kansaidan2302]

I've heard of cases where the 'Portability' option would have saved the surviving spouse a fortune in taxes .... but the attorney failed to tell them or exercise the option. Don't want to be one of those uninformed people . . . Thank You!

[@lovehusky02]

In order to keep the spousal exemption portability, it is important to file IRS Form 706 when the first spouse dies, even 706 is not required by IRS for estates less than the estate tax exemption.

[@rgarri6396]

I love paying taxes, I pray I pay millions each year in taxes.

[@shootermcgavin4999]

The system is Fd. The ppl with capitol and assets are making more money than us peasents trading our time for money. Fed prints money which is tax to tax payer and then it goes into assets and stocks making the top 1 percent even wealthier. Corrupt sysyem. 0 percent interst rates also didnt help. What advice do u have for a working class person with no stocks or assets?

[@5metoo]

I've traded time for money my whole life. But I've worked hard to stay within my means and save money, and with that I bought assets; primarily equities. Over the years compound interest did its work. After decades of compounding I now have more net worth than those who made high incomes though I was never in that group.

[@jdgolf499]

Start saving! Anyone can do it. I had an aunt who retired in 1987, having worked 37 years for a major retailer, but never made more than $22,000 a year, which is equivelent of about $44,000 today, which is below the national average. She passed in May od 2022, with savings of about $1.5 million, having gone through the market crash of 2021. Now, she had never married, but did support my Grandmother for 22 years. If she did it, anyone can.

[@chip5011]

Can a step up in cost basis occur twice? For example, Mom passes in 2018 and wills her assets (house and stocks) to her husband and our Dad. Then Dad passes in 2024 and his will passes all of his assets and Mom’s to their children. What should the step up in cost basis be on Mom’s assets ? Date of her death (2018) or Dads (2024)? No trusts, just a will.

[@rdspam]

Double step-up. If Dad sells, the basis is as of Mom’s death. If kids sell, basis is as of Dad’s death. (As always, get professional advice. Portability, QTIP, trusts, etc. can change things).

[@ericr2zz]

Mom's assets gets the step up in basis in 2018 (got to document the house and stock values on date of death). Then dad gets step in basis in 2024. Assuming mom's estate filed form 709 for portability, all assets from mom & dad under $28m are tax free. If no form 709 filed, the assets under $14m are tax free. See a lawyer for your specific case.

[@janefigueroa1731]

I ny, the house should be sold and split three ways equally if u put in your will is that set up right ? Is there any other way to give them the most a piece or will they have to pay a lot of taxes

[@JoeBtfzplk]

And don't forget to move out of a high tax state before you die.

[@richardcook8490]

This all could have been explained so much more clearly and systematically. There is so much unnecessary confusion inserted! 24:33 😅