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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe government will get a $150 to $250 million payday from Prince's estate
If Prince were married, he could have passed on the entirety of his estate to his spouse tax free. However, without a spouse, only $1.6 million of Princes estate will be free from Minnesotas death tax and only $5.45 million will escape the federal death tax.
The combination of Minnesotas top death tax rate of 16 percent, plus the federal governments 40 percent rate, means that over 50 percent of Princes estate will go to the government.
Had Prince known ahead of time that he would die at such a young age, he may have been able to reduce the governments reach into his estate through tax planning, but with a fortune as large as his, the governments claim to his estate was inevitable.
http://dailysignal.com/2016/04/29/why-over-half-of-princes-estate-will-go-to-the-government/
Sherman A1
(38,958 posts)that the term inheritance tax is more appropriate. "Death Tax" is a term as I recall is something that our esteemed friends in the GOP.
In any event the heirs will still come out rather nicely and whomever ends up with the rights to the music will undoubtedly do rather well.
Stallion
(6,476 posts)"If Prince were married, he could have passed on the entirety of his estate to his spouse tax free."
The assets would still be taxed at his spouse's death-which at least should have been mentioned
scscholar
(2,902 posts)and it should be a hell of a lot more than that tiny percentage.
YOHABLO
(7,358 posts)I think it's so unfortunate that the government takes so much of someone's hard earned money. But of course that's why people who are extremely wealthy hire fat cat lawyers. Prince should have taken measures to avoid this from happening. Who ever lays claim to his fortune will still make out well.
Igel
(35,359 posts)left of center to come from the GOP because it was discussed as such in the '00s.
The term's been around for at least a decade before the GOP started to use it and before those left of center decided that the GOP must have coined it.
It was used in the tax planning industry, right and left, in the '90s and "we" didn't bother to notice it until it became used by our domestic foes. First attestation is more important than first notice by a subgroup. It was certainly used by opponents.
http://www.npr.org/sections/thetwo-way/2010/12/16/132031116/a-history-of-how-we-got-from-estate-tax-to-death-tax says that it was used (first?) in the 1940s by opponents. I suspect it was lurking in unwritten language for a while before first attestation (that's typically how things work).
The wiki article https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States#The_term_.22death_tax.22 says that the language or similar language actually appeared in the legislation in the '50s and carried into at least the '80s.
Of course, Lakoff finds that it's a neologism used in framing in the recent past. That's Lakoff, making a certain species of linguistic thought serve a higher, or at least a political, end. Advocacy research sux.
As an aside, Prince was clearly in the 1%, and those who say that behind every great fortune there's a great crime either must really dislike his music or fall silent before the self-serving inaccuracy of their quote.
Yupster
(14,308 posts)second death.
It was being said that Prince had no will. Haven't heard if that had been updated.
A lesson for us all though. If you don't have a will, then get one, especially if you have minor children. Without a will, some lawyers are going to get rich administering the dispositions of his estate.
Hoyt
(54,770 posts)not to mention fighting attacks on the will's provisions by family, etc., after death. Sounds like Prince just didn't want to hassle with it, knowing his family would be taken care of even if they had to fight for a share. He certainly had attorneys he could have turned writing a will over to if he cared.
Yupster
(14,308 posts)That's too much money to have in your own name.
On the other hand, what difference does it make to him now who gets it.
EL34x4
(2,003 posts)He had nobody depending upon him for financial security.
jwirr
(39,215 posts)traditional will regarding property. There are other wills just as important - living wills that apply to healthcare and end of life decisions.
Life and death can and do come at anytime. You can walk out the door and face death at anytime in your life. As a social worker for Developmentally Disabled children and adults one of the first things we did as case managers is get those papers into effect. Guardians and parents are encouraged to put their wishes down so that they are there when needed.
leftofcool
(19,460 posts)winstars
(4,220 posts)pintobean
(18,101 posts)I don't hear any whistle, but I guess you must.
hfojvt
(37,573 posts)and not a fact.
All of us will die, most of us will not pay a "death tax" although I have been told that even for a small estate, like mine, there is a 15% probate fee. Hence, for all my CDs and things I make them "payable on death" to avoid those fees.
n2doc
(47,953 posts)I'll bet when it is all said and done the Lawyers for the various people trying to get a cut of his estate will get more.
Frankly this country would be far better of with at least a 50% tax on all large estates. We don't need to support a stinking oligarchy here.
basselope
(2,565 posts)What a weird way to refer to it.
It's an estate tax not a "death tax".
And is 150 million not enough for someone?
In short, the beneficiaries of Prince's estate will live in comfort for generations.
Miles Archer
(18,837 posts)Half of the estate is a payday for the government.
And is 150 million not enough for someone?
In short, the beneficiaries of Prince's estate will live in comfort for generations.
That's not the point of the article or the post. Prince had nothing in writing so the government takes half. Sorry that wasn't clear to you.
As far as "death tax" versus "estate tax," you can take that up with the author of the article.
basselope
(2,565 posts)Having "something in writing" doesn't change that the government takes half, you realize that, right?
Even if he had a will with every dollar bequeathed, it would STILL be subject to the estate tax.
The way to AVOID estate taxes, if you choose, is to A) Be married so everything automatically passes to your spouse. B) Own properly jointly with another person or entity such that the property automatically transfers upon death.
hunter
(38,328 posts)Planes like the F-35 are useless, new aircraft carriers are useless, humvees dropped from airplanes are useless.
Prince was a pacifist.
Wouldn't it be cool if his estate taxes could be used to help people who he would have helped?
Miles Archer
(18,837 posts)...if he had any thoughts about how the money was to be spent, it probably wouldn't have been thoughts of warfare.
Stallion
(6,476 posts)and paid that much less taxes
hunter
(38,328 posts)I'm pretty sure wealth will never be a problem I have to worry about. I'm never far removed from the dumpster-diving kid who was living in his broken car in a church parking lot, and I don't buy lottery tickets.
hfojvt
(37,573 posts)Does that make a difference to him now? He could have given a lot of money away when he was alive, and probably he should have (maybe he did, but apparently not enough)
philosslayer
(3,076 posts)Do you have any idea how much he DID give away?
RiverLover
(7,830 posts)Um, (cough) Democratic poster, we sort of need taxes to pay for our USDA, FDA, FCC, roads, military, health dept, etc. You know, those things that make US a civilized society?
WTH?
Stallion
(6,476 posts)tax doesn't even accrue until above the exemption amount
http://www.forbes.com/sites/ashleaebeling/2015/10/22/irs-announces-2016-estate-and-gift-tax-limits-the-10-9-million-tax-break/#1d344886a7c3
davepc
(3,936 posts)Thats on him, there are plenty of loopholes.
Starry Messenger
(32,342 posts)I'd like to think some of the money will go to public schools, maybe music programs.
eShirl
(18,504 posts)and not trying to get out of it by taking advantage of tax loopholes as if they were mandatory.
Enrique
(27,461 posts)at least disclose that's what it is, and give a reason why you're posting it.
Iggo
(47,571 posts)HassleCat
(6,409 posts)A wealthy person dies. He has no children depending on him. Any money he leaves behind is simply a windfall for relatives, etc. If the government gets half, that still leaves half for people who don't need it in the first place.
cheapdate
(3,811 posts)Only, I would prefer to structure it to take more of large estates.
We instituted "death taxes" because Americans wanted to avoid the creation of a landed aristocracy, like in old Europe.
If $5 million tax-free and then 40% on the amount above that isn't enough to live, then sell some land or property.
sendero
(28,552 posts).... the "death tax" sometimes keeps some money from going to people who simply did nothing to earn it and I am fine with that.
bhikkhu
(10,724 posts)In any case, I think Prince cared more that people would continue to enjoy his music. I'm not surprised that he didn't squirrel his monetary assets away somehow, what would be the point?
Estate taxes, btw, are one of the best means government has to reduce wealth inequality and support social mobility.
ButterflyBlood
(12,644 posts)Why on Earth are we just parroting right wing whining from that far right site here?