Inheritance entitlement problems

[Coach]

Originally Posted by Jason14h

Spending the money puts it back into someones hands, and it is taxed as income for someone!!

The government will never spend money efficiently!! NEVER

It also spends money on things that no one in the private sector does.

[CorsiHockeyLeague]

Originally Posted by Jason14h

Spending the money puts it back into someones hands, and it is taxed as income for someone!!

The government will never spend money efficiently!! NEVER

[GP_Matt]

The problem with an inheritance tax is that everyone worries it will affect their ability to split up their parents house and small estate.
In the US the tax doesn't affect the first $5.4 million. I am pretty sure the majority of people aren't affected by that.

The question is, should a wealthy family be wealthy for generations.

[CaptainYooh]

Originally Posted by CorsiHockeyLeague

If you were given the option to pay 45 cents to predict the outcome of a coin flip, and if correct in your prediction you win a dollar, you may lose 45 cents on the first try. You may even lose 90 cents after the second try. But if you keep betting, you'll end up ahead in the long term. This is the value of analytics. They do not describe destiny, only the likeliest result.

This is unrelated to the inheritance discussion, but I just noticed your signature and immediately remembered a friend of mine who wanted to prove this exact sentiment to us when we're in Vegas together quite a few years ago. He started betting at a Blackjack table with a $15 minimum and lost like seven hands in a row doubling down and losing almost $1,000 in a matter of minutes and that was all the cash he had. He was devastated... Anyway, that assumption only works assuming unlimited supply of money.

My apologies for the off-topic.

[CorsiHockeyLeague]

Lol what? Your odds at the blackjack table are under 50%. He just proved it, but on behalf of the casino...

[Buff]

I have 5 cousins (all siblings to one another) who are all divided because of who got what in the will after their parents passed away. Based on one cousin's accounts the others were taking items from their mom's house so that the others wouldn't get stuff etc. I wouldn't be surprised if the others said the same or worse that cousin too. You hardly see any of them at extended family gatherings any more probably because they don't want to run into each other. It is really sad how siblings don't get along because of who got what.

I'm an only child so I won't have to worry about fighting. I would love for my parents to leave me a tonne of cash to pay off things like mortgage and home improvements, who wouldn't love found money? However, I don't expect anything but to spend more time with them and for my kids to get to know them better as they grow older. Having not had siblings I can't understand how my cousins are estranged because of their parent's will....

Even with my wife's family I can see problems coming. I love to have nice things, but do I ever hate materialism.

[Dion]

I've told my mother that when her time comes to be sure the cash drawer is empty. You saved that money for retirement so spend it and enjoy yourself.

[flamesfever]

Part of the problem, as I see it, in bringing in a wealth tax, is the definition of wealth. When I was in university in the 50's, if you had $50,000. you could retire to Spain and live comfortably until you died. Now, with people living longer, inflation over the decades, and private pensions relying on the stock market, it takes one to two million in assets to maintain an average NA middle class lifestyle until you die.

Plus the governments, with their tendency to spend what they don't have, and the printing of their currency with nothing to back it up, are destroying the value of money as we speak.

Also, I believe a wealth tax would eventually lead to an inheritance tax.

[afc wimbledon]

Originally Posted by Jason14h

Spending the money puts it back into someones hands, and it is taxed as income for someone!!

The government will never spend money efficiently!! NEVER

Governments are no more or less efficient than private enterprise or individuals at spending money.
All of the above piss money away on dumb ass projects.

[skudr248]

Originally Posted by flamesfever

Part of the problem, as I see it, in bringing in a wealth tax, is the definition of wealth. When I was in university in the 50's, if you had $50,000. you could retire to Spain and live comfortably until you died. Now, with people living longer, inflation over the decades, and private pensions relying on the stock market, it takes one to two million in assets to maintain an average NA middle class lifestyle until you die.

Plus the governments, with their tendency to spend what they don't have, and the printing of their currency with nothing to back it up, are destroying the value of money as we speak.

Also, I believe a wealth tax would eventually lead to an inheritance tax.

Uni in the 50's!? How old are you!!

[Jason14h]

Governments are no more or less efficient than private enterprise or individuals at spending money.
All of the above piss money away on dumb ass projects.

At least they are pissing their own money (or shareholders) money away!

[cDnStealth]

I hope my mom spends every last cent of her money on herself. She's gone through a lot to give my sister and I a good life since my dad passed away and she deserves to enjoy the rest of her life. She paid for my university degree and that's more than enough in my opinion.

[pylon]

My folks piss me off because they planned incredibly well, and have enough money for a couple lifetimes, but still live with the attitude they need to be cheap asses and squirrel it away. "Dad, it's another 5 grand to get the fully loaded truck you really want, and you could comfortably by 50 of them. Just indulge, you are 74 for gods sake." "Nope, I'll settle for the one with the bench seat, and rubber floor."

I stand to inherit a very large estate one day, but I wish all they would leave me with, is nothing more than a couple funeral bills when they finally go. They got dealt such an unfair hand, when they had to raise my deceased sisters kids right when they were gonna retire in their mid-fifties, I wish they would live like royalty for the time they have left. But they just won't do it. They are too use to be uber-responsible with their money, and can't break the old habits.

[Slava]

Originally Posted by Forbsey-123

Inheritance tore apart my wifes family....constant fighting and long-standing grudges and they used to be so close. I told my parents to spend all their money on a cabin or something so we can all enjoy it together for as long as possible then leave my sis and I the cabin equally....no money....I don't want to think about profitting off my parents death

Originally Posted by CorsiHockeyLeague

It's interesting... on my mother's side, the entire family asset base is real estate that has been in the family for about a hundred years. Each successive generation has built a house, with the former generation's house being inherited by one of the children, which has worked out well. However, as generations pass, the whole thing has to be effectively divided among more and more people - three siblings in my mom's generation have yielded seven kids including me in this generation (though my uncle moved to Australia with two of them so that's effectively now five). My grandparents, who are extremely intelligent and savvy about money and also dead-set on remaining patriarch and matriarch as long as possible, have essentially decreed their wish that nothing be done with this property - it shall neither be sold, nor mortgaged, nor partitioned, nor developed in any way save to build more houses for people in our immediate family. I am fully on board with these goals, but I'm not hard up and will get by okay whatever happens. Others may create tension - my mom, for example, wants to get a mortgage on a portion of the property to fund whatever she wants to do with her retirement, but my grandparents say absolutely not. My aunt, whose husband makes 7 figures and has been sort of in a cold war with the grandparents (massive political / personal differences), wants her three kids to get a good chunk of all of this for themselves, and they might be in the best position to make sure it stays unencumbered and in the family.

It's all a bit of a mess, and all in all the family isn't any more dysfunctional or hostile than anyone's. Everyone loves each other. But it would definitely be easier to split up a big pile of cash.

I would advise you guys to look long and hard at life insurance. If you want (or in the case of the second post here, have) to keep a property in the family its a deemed disposition upon death, and you will have a tax on the gains. Insurance is almost surely the cheapest, most sensible way to fund that liability.

[CorsiHockeyLeague]

Property has been properly frozen I believe - to the extent it exceed principal residence exemptions. Shouldn't be much in the way of gains.

[flamesfever]

Originally Posted by pylon

My folks piss me off because they planned incredibly well, and have enough money for a couple lifetimes, but still live with the attitude they need to be cheap asses and squirrel it away. "Dad, it's another 5 grand to get the fully loaded truck you really want, and you could comfortably by 50 of them. Just indulge, you are 74 for gods sake." "Nope, I'll settle for the one with the bench seat, and rubber floor."

I stand to inherit a very large estate one day, but I wish all they would leave me with, is nothing more than a couple funeral bills when they finally go. They got dealt such an unfair hand, when they had to raise my deceased sisters kids right when they were gonna retire in their mid-fifties, I wish they would live like royalty for the time they have left. But they just won't do it. They are too use to be uber-responsible with their money, and can't break the old habits.

Being from the same generation, I can sympathize with your parents, who were probably heavily influenced by what their parents had to go through, and what they also experienced along the way to becoming affluent. They also may be anxious to ensure that those who follow them are well protected financially, including their children and grandchildren. I would say that in most cases an inheritance represents a lot of hard work and self denial, and should be put to good use in honour of the parents' memory.

[Tinordi]

Originally Posted by flamesfever

Absolutely not.

1. For most people an inheritance is a blessing.

2. The money has already been taxed.

3. It would encourage ways to avoid the tax, like moving money offshore, etc.

4. The money is much more efficiently used, left in the hands of the people, than it is in the government.

I love that crap like point 4 is parroted as though it's a law of physics.

That is an ideological assumption. Is the hundreds of millions of stranded capital in 100,000 abandoned units of Irish housing stock an efficient use of money? No? Private markets did that.

Point 1, inheritance is a blessing, which is why it should be taxed. Unless, of course, you support the creation of a landed gentry?

[T@T]

Originally Posted by Tinordi

Point 1, inheritance is a blessing, which is why it should be taxed. Unless, of course, you support the creation of a landed gentry?

Taxed? Any money earned by a dead relative should have been taxed already. do your "nobles" make money from grow ops or something?

[Slava]

Originally Posted by Tinordi

I love that crap like point 4 is parroted as though it's a law of physics.

That is an ideological assumption. Is the hundreds of millions of stranded capital in 100,000 abandoned units of Irish housing stock an efficient use of money? No? Private markets did that.

Point 1, inheritance is a blessing, which is why it should be taxed. Unless, of course, you support the creation of a landed gentry?

Why should inheritance be re-taxed? If I save my money to pass to the next generation I've already paid taxes on it. This is just a pure money grab.

[Jason14h]

Why should inheritance be re-taxed?

Because I'm not getting it and like other people to pay for my stuff???