Sadly Amazing - Escaping the Estate Tax (July 19, 2010)
Amazing as it may sound, the passing of both Texas billionaire Dan Duncan and Yankees boss George Steinbrenner came at an amazing time, financially speaking. For the first time since the first estate tax was invoked in 1916, this is the first year that there has been no estate tax (expiring on Dec. 31).
So what does that mean?
Consider this. Had either man lived to see another New Year’s day, their family's wealth would have been subject to a whopping 55% tax - almost $5,000,000,000 (that's Billions!). That tax alone is greater than the GDP of a large number of other countries.
Given that the Duncan estate probably didn’t sock away $5B in cash, assets would have to have been sold the pay the tab to Uncle Sam. Consider, too, that only our government could have put its citizens in the following predicament.
What would have happened if Mr. Duncan had survived until December of this year, fallen ill and put on life support? This family, like many other families in this position, would have been left with the dilemma of making medical directive decisions with a (significant, in this case) financial consideration. If Mr. Duncan survived past midnight on Dec. 31st… his family would have faced the mother of all tax tabs!
Read the article below, and ask yourself if our forefathers ever dreamed that the government they originally founded, would ever put its citizens in this position.
Sadly amazing.