3 ms·

Mortality fixes generational issues

iknowstuff 2y ago
Are you aware of the vast disparity of wealth among American families? On the order of 100k for white families, 10k for black families. Wealth being passed down family trees ensures immigrants and people who are worse off now will remain priced out. https://www.brookings.edu/articles/black-wealth-is-increasing-but-so-is-the-racial-wealth-gap/ https://www.brookings.edu/articles/black-wealth-is-increasin...
- paulddraper 2y ago
  Inheritance is tough. Death tax takes a good chunk.
  - PaulRobinson 2y ago
    Do you know the actual rates, what value the estate must be at for it to kick in, and in which states? Are you aware of spousal transfers and other mechanisms to reduce or avoid it? Most people get very worried about “death tax”, until they do the numbers on their own estate and realise either it mostly doesn’t apply to them or it’s marginal. In the UK this is often used as a major campaign point but the number of estates actually subject to it is quite small.
    - paulddraper 2y ago
      Yes yes and yes. And spousal transfers are hardly generational (most of the time).
      - deleted 2y ago
        [deleted]
    - tankenmate 2y ago
      The rate in the UK is that just over 4% of estates attract Inheritance Tax (IHT).[0] [0] https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-commentary https://www.gov.uk/government/statistics/inheritance-tax-lia...
    - estreeper 2y ago
      In the United States, federal tax applies when the estate is valued over $13.6M for 2024[1], though as you mention spousal transfers and other methods can be used for tax avoidance as well. 1. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes https://www.irs.gov/businesses/small-businesses-self-employe...
  - 3eb7988a1663 2y ago
    Estate taxes do not kick in until $13 million in assets.
  - hiddencost 2y ago
    ? Please clarify. Estate tax does not kick in until $12 million. If you mean "the cost of end of life health care", sure, but anyone inheriting more than $12M can afford the taxes.
  - mcmcmc 2y ago
    For you maybe. For 99% of the US population, it does absolutely nothing. > Just over 7,100 estate tax returns will be filed for people who die in 2023, of which only about 4,000 will be taxable—less than 0.2 percent of the 2.8 million people expected to die in the year. Source: https://taxpolicycenter.org/briefing-book/how-many-people-pay-estate-tax https://taxpolicycenter.org/briefing-book/how-many-people-pa...
- ryathal 2y ago
  Inheritance rarely survives past the third generation, it's not really part of the problem.
  - iknowstuff 2y ago
    ???? so what is?
torginus 2y ago
Considering the average life expectancy, inheriting a house from your parents won't happen much sooner than 56.
- dqv 2y ago
  Oh, I guess I'm in the wrong crowd. My immediate assumption was not inheritance, but tax/debt sales and a housing glut pushing the prices down.

Are you aware of the vast disparity of wealth among American families? On the order of 100k for white families, 10k for black families. Wealth being passed down family trees ensures immigrants and people who are worse off now will remain priced out. https://www.brookings.edu/articles/black-wealth-is-increasing-but-so-is-the-racial-wealth-gap/ https://www.brookings.edu/articles/black-wealth-is-increasin...

paulddraper 2y ago
Inheritance is tough. Death tax takes a good chunk.
- PaulRobinson 2y ago
  Do you know the actual rates, what value the estate must be at for it to kick in, and in which states? Are you aware of spousal transfers and other mechanisms to reduce or avoid it? Most people get very worried about “death tax”, until they do the numbers on their own estate and realise either it mostly doesn’t apply to them or it’s marginal. In the UK this is often used as a major campaign point but the number of estates actually subject to it is quite small.
  - paulddraper 2y ago
    Yes yes and yes. And spousal transfers are hardly generational (most of the time).
    - deleted 2y ago
      [deleted]
  - tankenmate 2y ago
    The rate in the UK is that just over 4% of estates attract Inheritance Tax (IHT).[0] [0] https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-commentary https://www.gov.uk/government/statistics/inheritance-tax-lia...
  - estreeper 2y ago
    In the United States, federal tax applies when the estate is valued over $13.6M for 2024[1], though as you mention spousal transfers and other methods can be used for tax avoidance as well. 1. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes https://www.irs.gov/businesses/small-businesses-self-employe...
- 3eb7988a1663 2y ago
  Estate taxes do not kick in until $13 million in assets.
- hiddencost 2y ago
  ? Please clarify. Estate tax does not kick in until $12 million. If you mean "the cost of end of life health care", sure, but anyone inheriting more than $12M can afford the taxes.
- mcmcmc 2y ago
  For you maybe. For 99% of the US population, it does absolutely nothing. > Just over 7,100 estate tax returns will be filed for people who die in 2023, of which only about 4,000 will be taxable—less than 0.2 percent of the 2.8 million people expected to die in the year. Source: https://taxpolicycenter.org/briefing-book/how-many-people-pay-estate-tax https://taxpolicycenter.org/briefing-book/how-many-people-pa...
ryathal 2y ago
Inheritance rarely survives past the third generation, it's not really part of the problem.
- iknowstuff 2y ago
  ???? so what is?

torginus 2y ago

Considering the average life expectancy, inheriting a house from your parents won't happen much sooner than 56.

dqv 2y ago
Oh, I guess I'm in the wrong crowd. My immediate assumption was not inheritance, but tax/debt sales and a housing glut pushing the prices down.