Of course we don’t want anything to happen to Rick……………………..but he better watch his back. His family may be after him.
If you have money then you know about the estate tax. It’s one of the worst tax laws for anyone with family businesses or any business for that matter, especially farming. It effects anyone with over a million dollars of assets that wants to leave his/her wealth to an heir. It also will have consequences for those that stand to receive wealth and assets from family. Over the years, the numbers and percentages of the so called “death tax” have changed. For instance, this year there is no tax. If you’re going to die and leave your family over a million dollars worth of assets, you better get to dieing.
Obama and his fine administration are in the process of trying to reinstitute the death tax but at a very scary rate. Nothing has been decided at this time but the present talk is the first million is tax free, anything over that at 55%. Think about this. If you have over a million dollars you are going to have to pay a 55% tax on the balance. While this may seem like a lot, a lifetime of savings can easily reach a million dollars when you throw in total assets. Homes, land, 401K, life insurance. Anyone that make over $50,000 that saves at a normal rate over a lifetime will easily reach a million dollars.
This absolutely effects domainers as well. Many of the people you read about daily have millions and millions of dollars in assets. Even little old me has over a million and being in a family business I could possibly have to sell off much of our assets just to pay the taxes. Many people seem to say “you have over a million dollars, I don’t feel sorry for you” . I won’t ever get into an argument with a person that feels this way because it’s a hopeless case. It’s been going on for thousands of years. Those without want to take from those that have. Without going off on a tangent I’ll merely say, I feel more than comfortable that I have and am paying way beyond my fair share of taxes and into the infrastructure of America. My family has created an entity that provides 40 jobs locally and pays hundreds of thousands in taxes per year. Now the government wants to take half of that entity away ……so in step the lawyers.
The difference between wealth and poor are lawyers and professional advisers. Some call it cheating the system, we call it preserving wealth. I suggest anyone that stands to inherit or give away inheritance start very very soon planning their estate. Give you maximum to your children IMMEDIATELY or the government WILL take it. This isn’t a sky is falling post. It is saying that as domainers, business owners, and entrepenuers, we are working every day trying to make great money. We are taking risk, giving up our personal lives, and sacrificing to have a above average lifestyle. Whether greed is wrong or right is not important. What is important that many of are so busy making money that we aren’t watching our government make rules right in front of us that will be taking money right out of our children’s pockets.
Many Republicans and Democrats alike realize the burden this would place on businesses and many are pushing for a $5 million tax free and 40% after. In my opinion this is much more realistic. I still don’t completely agree with it, I think it should be $10 million, but I understand that you can’t just pass huge assets around like an old shirt. There has to be tax implications. We’ll see how this plays out but in the meantime I highly advise people, regardless of age, to look at their assets, their parents assets, and analyze how the transition will happen and the tax implications. Get a good lawyer and CPA.
And Rick, yet again I’ve used your fame for a good headline. I owe you a few beers