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Purveyor

(29,876 posts)
Tue Jun 24, 2014, 05:17 PM Jun 2014

Wealthy Clintons Use Trusts to Limit Estate Tax They Back

By Richard Rubin Jun 17, 2014 12:00 AM ET

Bill and Hillary Clinton have long supported an estate tax to prevent the U.S. from being dominated by inherited wealth. That doesn’t mean they want to pay it.

To reduce the tax pinch, the Clintons are using financial planning strategies befitting the top 1 percent of U.S. households in wealth. These moves, common among multimillionaires, will help shield some of their estate from the tax that now tops out at 40 percent of assets upon death.

The Clintons created residence trusts in 2010 and shifted ownership of their New York house into them in 2011, according to federal financial disclosures and local property records.

Among the tax advantages of such trusts is that any appreciation in the house’s value can happen outside their taxable estate. The move could save the Clintons hundreds of thousands of dollars in estate taxes, said David Scott Sloan, a partner at Holland & Knight LLP in Boston.

“The goal is really be thoughtful and try to build up the nontaxable estate, and that’s really what this is,” Sloan said. “You’re creating things that are going to be on the nontaxable side of the balance sheet when they die.”

more...

http://www.bloomberg.com/news/2014-06-17/wealthy-clintons-use-trusts-to-limit-estate-tax-they-back.html

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madville

(7,397 posts)
1. I wonder why they are going through the trouble
Tue Jun 24, 2014, 05:26 PM
Jun 2014

When Chelsea just stated that "she can't make herself care about money". Assuming she would inherit the estate it won't matter to her if it's a few hundred thousand lighter right?

 

msanthrope

(37,549 posts)
2. Awesome...the great thing about this is that you can do it, too. Anyone who probates a house is
Tue Jun 24, 2014, 05:28 PM
Jun 2014

wasting cash.

gratuitous

(82,849 posts)
4. Yeah, I'm not sure what the point is
Tue Jun 24, 2014, 05:41 PM
Jun 2014

Especially considering that whoever the Republicans run for president (not just nominate, but anyone who runs for the Republican nomination) will be filthy stinking rich, and their last two nominees haven't been especially forthcoming about their personal fortunes. John McCain, unlike most Americans, didn't even know how many homes he owned. Mitt Romney flat out refused to release his tax returns on anything like the scale of previous nominees.

Or is Bloomberg advocating for ending a whole bunch of tax breaks for the wealthy, and having them pungle up a little fairer share?

Thinkingabout

(30,058 posts)
6. when someone post about others using the tax codes to their advantage it also applies when even the
Tue Jun 24, 2014, 07:27 PM
Jun 2014

lowest tax payers can "take advantage" of the tax code, doesn't make us bad and it doesn't make the Clintons or Warrens bad.

KoKo

(84,711 posts)
11. Why do you say that? Clintons Legitmately can protect money just like Mitt Romney. It's the Law...
Tue Jun 24, 2014, 08:13 PM
Jun 2014

That they DO IT and have that much to keep away from the IRS is Everyone's Business, though. It doesn't make them BAD People and the RW has every right to report it as does the LW to point out that wealthy Democrats do what the Republican do and all other very wealthy individuals who do it legally.


When you have that much money your financial advisers would be remiss if they didn't find legal ways to "Protect Trusts" and money for wealthy individuals.

KoKo

(84,711 posts)
10. Absolutely...Once You Have Made It...you join the Crowd that Conceals Taxes...Legitimately!
Tue Jun 24, 2014, 07:52 PM
Jun 2014

Nothing to see here...move along. Their "Undeclared Income" is in TRUSTS! And...the "Clinton Foundation" which also has "Conceal Perks."

It's what the Wealthy Do! And remember...Bill & Hillary are poor and had Legal Bills because of the STARR Commission.

So...they deserve it!

Oilwellian

(12,647 posts)
12. But KoKo...
Tue Jun 24, 2014, 10:45 PM
Jun 2014

we don't see the Clintons as part of the problem because they pay ordinary taxes, unlike a lot of people who are truly well off!

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