If You're Rich, Watch Out for Greedy Heirs and Sharp Objects

By
Real Estate Agent with HomeSmart, Evergreen Realty

If you're rich

BE CAREFUL THIS YEAR AROUND GREEDY HEIRS.  There could be some risk for your survival.

The U.S. estate tax this year is zero, so if you die or are killed during 2010, your heirs pay the government nothing on the money you pass along to them. 

This U.S. estate tax will return big time in 2011, and unless Congress extends, starting January 1, 2011, all taxable estates of more than $1 million will be taxed at pre-2001 rate of 55%.  

So estate tax will go from zero to 55% at the stroke of midnight on December 31, 2010.  (U.S. Congress might reduce the estate tax rate from 55%, but it won't eliminate it.)

Watch out for greedy heirs

Your heirs are smart and will know that if you die this year the U.S. estate tax is zero, and that if you wait to die until 2011, they will face a tax rate of about 50%.

and sharp objects

If you want to reduce chances of your dying in an unusual way or getting killed by heirs this year, consider this:

First:  Know that if your only heir is your wife or husband, he or she can inherit everything without incurring any tax liability this year or next.

Second:  If there are heirs who might want to get rid of you this year, you should revise your estate plan to remove incentives they would knock you off.

eliminate their evil incentiveArrange it so your heirs would get same amount of money if you die this year as compared with the next.

 

Change your will, so that if you drop dead this year, the first 50 percent or more of the estate goes to charity.  Divide the remainder among your heirs.  Then on January 1, 2011, have your will revert to prior conditions and give copies of your will to each heir.

___________________________

Hah!  Just kidding ... unless of course you actually have heirs who would be that greedy. 

______________________________________________________________

Harrison K. Long
REALTOR and broker associate, Explore Group Properties, Coldwell Banker Previews
949-854-7747 - CA DRE 01410855 - www.LiveAtIrvine.com - www.NewportCoastLive.com - www.LiveAtNewportBeach.com - www.CostaMesaLive.com - www.LiveAtLagunaBeach.com - www.CoastLivingHomes.com - www.ExploreOCHomes.com  - www.LiveAtOrangeCounty.com  

 

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Ambassador
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Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Great post! Sad to say I think there are some people out there who need this advice!

Jul 26, 2010 08:36 PM #1
Rainer
370,932
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Okay, so now you need to go and sit quietly in the corner (preferably with a good book) for an hour!!!

Jul 26, 2010 08:39 PM #2
Ambassador
1,304,904
Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

FYI, I liked this so much I just re-blogged it. Maybe it's the start of a new murder mystery...

Jul 26, 2010 08:41 PM #3
Rainmaker
506,446
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Michelle ... Thanks for the comment, and it's good to know you and others you can see the possible fun in reality of our U.S. estate tax system.

Jul 27, 2010 11:28 AM #4
Rainmaker
506,446
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Tish ... Like your recommendation for my being timed out and relegated to a corner with a good book.  I'll try that today and get away from the U.S. tax code. 

Jul 27, 2010 11:40 AM #5
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Harrison K. Long

REALTOR , GRI, Broker associate, Attorney
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