My friend didn't know that small estates are not taxed!

[napi21]

I couldn't believe it! Last night, I was talking to a friend about whatshe would have to do when her inlaws passed away. Questions like "do you have to get an attorney etc. She was concerned about thxes that would have to be paid and how you get that done. Then she surprised me! She said "...all the taxes that have to be paid and who files the Fed and State forms, and how will we ever come up with the money that's due?"

She DIDN'T KNOW that there is NO Fed Tax on small estates! The one she was talking about is at best $125,000 in total, and that includes a house!

I honestly thought this info was one of the few that was publicized in the MSM! How many other people don't know that? How many fall for the RW BS about the "death tax" thinking it affects THEM?

AAARRRRGGGGGHHHH!!!!

[ayeshahaqqiqa]

1. That's why the MSM doesn't explain it

they want the average Joe or Joan to think that the "death tax" will take away their small estates!

[TahitiNut]

2. Yep. When there's a vested interest in ignorance ...

... efforts to preserve and increase that ignorance will receive "investments." (FWIW, that's a tautology - and is inarguable.) If there's anything more antithetical to a healthy democracy, I have yet to see it. By far, the most fundamental 'activism' on the side of democracy is fighting anything that perpetuates or increases ignorance.

[wakeme2008]

7. HI TahitiNut

:hi:

I have not seen your dive flag in a post for a while... :)

[TahitiNut]

13. It's been "submerged" in the effluvium, I think.

The viz isn't very good in that stuff. :evilgrin:

:hi:

[napi21]

4. But, but, but, I KNOW I've heard it explained many times!

I've heard it explained on the news, by many different Dems and many commentators. This lady watches the news all the damn time! I didn't, but I wanted to say "Are you friggin deaf?"

I explained it to her, and it's really very simple!

If SHE didn't know the real story on this issue, how many others don't either????

What other important info is apparently being just tuned out????

[SoCalDem]

16. People get confused because when many heirs divide an estate

sometimes there ARE taxes and fees to be paid, but it's usually because they SELL everything to get the CASH....

If Grandma dies, and leaves a farm to her 5 grown kids, the inflated value of her land "may" reach a threshold where tax kicks in, but I would assume that the executor would just pay the taxes out of the estate before the split...and since probably those 6 grown ups with lives of their own do not plan to FARM the place, it HAS to be sold.. Auctioneers charge a fee, probate lawyers charge a fee, there may be back taxes due, realtors' fees and of course the heirs often hire lawyers of their own..

My guess would be that in some estates, legal fees might actually outweigh any taxes.. and of course if there are STATE inheritance taxes..well that's another thing..

I have been an heir in 3 estates in the last 10 years, but did not have to pay a dime (except for lawyers)..

[blm]

5. Exactly - Dems even called GOPs bluff about the "family farm" lie they use

and offered to excuse the first 8 MILLION dollars from estate taxes to protect small family businesses and farms.

But, GOPs really want to use that lie, so they REFUSED the Dem plan just so they can keep using the LIE for the SUPER WEALTHY.

[ClassWarrior]

3. Maybe the first step is not calling them "the MSM"...

They're the Corporate Media. Ain't nuthin' "mainstream" about those freaks. And people like your friend need to learn that.

NGU.

[napi21]

6. OK, that was MY shorthand for explaining that she reads the

newspapers, listens to the local news at 6 & 11, and watches CNN, MSNBC, and occasionally cspan. She lives in Pgh. Pa., not some extreme rural community in XXXXX State. She's usually pretty aware of most things that hit the general news.

I'm still surprised she was so unimformed about this!

[wakeme2008]

8. It's what happens to ppl with wonderful titles of DEATH TAX...

they think everybody has to pay it. :grr:

[ClassWarrior]

10. Exactly! Which is why we have to be strategic in OUR use of language.

NGU.

[HuskiesHowls]

9. She's not the only one!!!

My ex-wife had to deal with the death of her parents last year, and was also concerned about estate taxes. Needless to say, I gave her the information, and she answers: I didn't know that!!!

The misinformation that is out there...and all the GOOD information is in hiding!!

<snip>
"Estate taxes total so much that heirs must liquidate farms or small businesses to produce the required cash.

... If so, it would be a surprise to Iowa State economics professor Neil Harl, the national expert whose classic, Farm Estate and Business Planning, is the standard reference on the subject. Harl has stated repeatedly that he has never encountered a case where this has actually happened.
...
What happens more often is that one or two of several heirs does not want to remain a partner in the farming operation, and it is liquidated to provide cash for the siblings who want out."

http://www.edlotterman.com/EstateTax.htm and:
http://www.extension.iastate.edu/agdm/articles/harl/HarlNov03.htm

By the way, these are NOT new articles!!!

And don't forget: Bill Gates, Sr and Warren Buffett have both come out AGAINST repeal of estate taxes!!

[Lars39]

11. At what dollar amount does an estate get taxed?

[JackDragna]

12. It's 1.5 million right now, up to 2 million..

..through 2009 or so, with estates in 2010 paying no tax if I remember correctly.

[Lars39]

14. Thanks, JackDragna.

:hi:

[Stargazer99]

15. You would be amazed how the monied conservatives

don't want Joe Six Pac educated and knowledgeable...makes 'em less controllable you know.

[napi21]

17. You're probably right, but I'm NOT wealthy! And I knew all this!!!!

I guess my problem is what in the world do we have to do to get people to pay attention????

If I croaked tomorrow, my estate, including my house, cars, and 401K MIGHT total $200,000, so I'm not considered wealthy by anyone! I admit, I knew there was a level at which no Fed. Estate Taxes were due, but I've heard this sooo often, I was really tired hearing the repitition. It worries me, if something as simple as this is to understand, isn't being heard, how in the world can we ever get the more complex issues to be heard by the general populace?

[rucky]

18. What kind of flim-flam act would it be...

if they didn't get us regular folks worked up over the rich man's woes?