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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWealthy 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 doesnt 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 houses 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 thats really what this is, Sloan said. Youre 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
madville
(7,397 posts)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)wasting cash.
Thinkingabout
(30,058 posts)Then you are taking advantage of the tax codes also.
gratuitous
(82,849 posts)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)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.
Habibi
(3,596 posts)legally required to.
Thinkingabout
(30,058 posts)Demo_Chris
(6,234 posts)KoKo
(84,711 posts)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.
BootinUp
(46,852 posts)I am sure they will make it sound dirty.
KoKo
(84,711 posts)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)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!