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View Diary: A Conversation w/ My Rich, Republican Father (226 comments)

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    You can get into funds that are not advertised that seem to never lose money.

    I presume you're talking about hedge funds, which got killed during the Great Recession.  
    Nobody with money will EVER pay it directly. In my family we call it "the last to die insurance policy."

    They buy an insurance policy, and then use the proceeds that would otherwise go to you to pay the estate tax.  That's a direct payment of assets, not some illusory trick.  
    Again I don't understand all of this but lets just say we pay less taxes, less insurance, then we would if this wasn't the case. I mean a lot less.

    Sure, you do.  But someone - either the trust or your parents - is paying the same amount that you would.  As with insurance, the expense doesn't disappear or vanish into thin air; trusts aren't magical devices.
    The goal is to have around $750,000 in it and I don't think we pay any taxes on it.

    Tax is definitely paid on the income.  Maybe by your folks, maybe by the trust, but the tax is being paid.  

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