[jimbomaybe]

Originally Posted by Topspinmo

Yep, done lot for China.

Because fewer people could afford the products if manufactured here

[nn0wheremann]

Originally Posted by retiredguy123

There is no gift tax to a recipient, regardless of the amount. There is an estate tax on the grandmother's estate, but only if her estate is worth more than $13.99 million.

As I understand it, with a POD order on file, the brokerage account never accrues to the estate. My question is, if there are a large number (21) of beneficiaries contemplated, is there a tax consequence if the POD names one of them, with the understanding that that one will immediately liquidate the account and divide it among the other 20 intended beneficiaries? Would those distributions incur gift tax?

[retiredguy123]

Originally Posted by nn0wheremann

As I understand it, with a POD order on file, the brokerage account never accrues to the estate. My question is, if there are a large number (21) of beneficiaries contemplated, is there a tax consequence if the POD names one of them, with the understanding that that one will immediately liquidate the account and divide it among the other 20 intended beneficiaries? Would those distributions incur gift tax?

I really don't think that a person can avoid estate taxes with a POD account. If that were the case, almost no one would ever pay estate taxes. By definition, POD (payable on death) means that the person is dead before the beneficiary receives the money. When someone dies, the estate value is established at the time of death, and POD assets are included as part of the estate for the estate tax calculation. There is a clear distinction between a gifted asset and an estate asset. To qualify as a gift, the asset must be transferred while the gifter is alive.

Theoretically, even a very weathly person can avoid the "unified gift and estate tax" by gifting $19,000 each to hundreds or thousands of different individuals before they die. Each $19,000 gift would qualify for the annual gift exclusion. But, as I understand it, this cannot be done in any manner after death. Note that the estate tax is an entirely different tax from the income tax.

[CoachKandSportsguy]

Originally Posted by nn0wheremann

As I understand it, with a POD order on file, the brokerage account never accrues to the estate. My question is, if there are a large number (21) of beneficiaries contemplated, is there a tax consequence if the POD names one of them, with the understanding that that one will immediately liquidate the account and divide it among the other 20 intended beneficiaries? Would those distributions incur gift tax?

Everything financial accrues to the estate, even assets not received yet, but are owed. . including inheritance not yet received nor dispersed.

In the above case, the estate could be distributed that way, however, the actual execution would be beyond the decedents control, or wishes, so the final result could be iffy. . . Likewise, there would be minimal income tax / capital gains tax, on the sale of stocks by the beneficiaries, so the only potential tax would be any state gift tax, depending upon the location of the beneficiary, paid by the beneficiary after distribution. . needs to be recalculated and then removed from the distribution amount

One way to get around state gift taxes, is to loan money to a beneficiary, at zero interest rate, and due the estate upon death. The loan would be included in the estate value, but the trust or will would state that all loans are forgiven. . thereby giving the money prior to death, not having income for taxation, and not requiring a repayment.

OK, let's brain storm one more devious tax avoidance scheme. .

[dewilson58]

Originally Posted by CoachKandSportsguy

One way to get around state gift taxes, is to loan money to a beneficiary, at zero interest rate, and due the estate upon death. The loan would be included in the estate value, but the trust or will would state that all loans are forgiven. . thereby giving the money prior to death, not having income for taxation, and not requiring a repayment.

OK, let's brain storm one more devious tax avoidance scheme. .

This is done quite a bit.

[dewilson58]

Originally Posted by Pugchief

Does it really matter if it's 76 million or 52.2 million?

Completely ridiculous that so many people are not net taxpayers. And still complain that the rest aren't paying enough / their "fair share".

[Ken D.]

Originally Posted by tophcfa

It’s amazing that the roughly 76 million Americans who pay no federal income taxes seem to think everyone else, who is already paying taxes, should be paying more. As the old saying goes, it’s not important how much one makes, it’s how much one keeps.

Exactly my thoughts as well.

[rsmurano]

You are taxed on gains and the so-called wealthy already pay the majority of taxes in this country.
In this case, there is a $29k gain in the stock, who is going to pay that gain? When we give our 401k/ira to our kids, they will have to pay our gains within 10 years. There is no freebies.
Now, if you find loopholes, tax laws that you can take legally to allow you to pay $0 taxes, all the power to you. If you think you didn’t pay enough taxes, there is a line item on the 1040 to allow you to pay extra taxes. People can’t get upset at somebody paying $0 or little taxes because they are following the law. If you pay $0 taxes by lying, then they should put you in jail.
There are limits on how much you can give family members legally.

[Ken D.]

Originally Posted by OrangeBlossomBaby

Another option: stop trying to avoid paying taxes. If you don't, you're contributing to the burden put on future generations (your kids, grandkids, THEIR kids and grandkids) to pay for the loss.

Be a contributing member of society and pay your taxes.

Hmm, let me guess what tax bracket you're in.

[Johnsocat]

Originally Posted by CoachKandSportsguy

Can not vouche for IRS legitimacy

What's the difference between gifting yo grandma and gifting to son?

[Haggar]

Originally Posted by dewilson58

This is done quite a bit.

This doesn't work for so many reasons.

The IRS considered loans to be forgiven at death a gift.
The IRS also states that if a loan is given at less than the prevailing rate interest is to be imputed and that interest is considered a gift. This amount should included in the lender's taxable income.

[Haggar]

Originally Posted by CoachKandSportsguy

Can not vouche for IRS legitimacy

After reviewing the IRS regs this seems to work for tax purposes. The caution is does it meet the estate planning needs of the family? An estate attorney needs to review this plan to ensure this will hold up when there are multiple beneficiaries.

I love this business - always something to learn and consider.

[retiredguy123]

Originally Posted by Johnsocat

What's the difference between gifting yo grandma and gifting to son?

If the son receives the stock as an inheritance from the Grandmother, he gets the stock at a stepped up basis, which means that the cost basis is $30,000. So, if he sells it for $30,000, he pays no capital gains tax.

If the father gives the stock to the son as a gift, the son must assume the father's cost basis, which is $300. So, if the son sells the stock for $30,000, he will need to pay capital gains tax on $29,700.

[BumpaOompa]

I believe once the father transfers the stock to the Grandmother it creates a taxable event and the father gets whacked for the capital gains. If it sounds too good to be true it probably is.

[SHIBUMI]

Originally Posted by CoachKandSportsguy

Can not vouche for IRS legitimacy

Federal Gift Tax exemption is 19,000$. to as many people as you want
don't see how you can gift more than that to granny without it being taxed

dont see how you get around that?????????????