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The estate tax exemption is $11M, so you do not pay any estate taxes if the wealth you leave behind is less than that. Do you know many poor people with more t
by ip26 7y ago
The estate tax exemption is $11M, so you do not pay any estate taxes if the wealth you leave behind is less than that.
Do you know many poor people with more than $11M in wealth?
- dantheman 7y agoWhen you own a small business and some land your wealth may be over 11m but not liquid.
- ip26 7y agoI guess I've never thought of a landed businessman as poor.
- arcticbull 7y agoAnd of course there’s ways to solve this: tax the land at disposition. You don’t need to collect on the estate tax for land holdings as dollars at time of inheritance, you can just drop fractional ownership into a trust c/o the IRS and even retain right of first refusal if you should be able to pay it off in time. This is how the IRS already handles illiquid assets if an American chooses to expatriate: you get the choice to pay in cash or fractional ownership in trust.