Jaded-Fan
Registered User
Tells you the last time I checked the exemption . . .
Well in that case, nobody is paying 40%, because anyone with that kind of money is setting up trusts and utilizing other work arounds.
As one who puts those work arounds together, I can tell you that they closed many of them, most years ago. Look up the Gallo rule sometime, named after the wine family. They doubled the tax if you skip a generation in a gift, to grandchildren. So 80%.
There is a way to get around it though. A couple in fact. Not including the doubling of the exemption to $24 million for a couple that I already mentioned.
Index funds will outpace the taxes so if they simply take the income from the index fund they will not only maintain the wealth, likely forever, but will grow the estate. How much can you spend anyways? Bezos has $157 billion. Five percent a year of $157 billion ain't bad. Also you can do a backdoor Roth IRA. Only on the retirement assets, but then all growth will be tax free.