5 ms·

Grandfather could marry grandson to avoid estate and generation-skipping tax?

53 points by soundsop 13y ago

sixQuarks 13y ago
I can see this scenario becoming the plot of a feel-good comedy movie
- troymc 13y ago
  Here's a song for the soundtrack: https://www.youtube.com/watch?v=q0s5Kn9QXtU https://www.youtube.com/watch?v=q0s5Kn9QXtU
tantalor 13y ago
See also http://www.huffingtonpost.co.uk/2013/04/04/jeremy-irons-would-gay-marriage-fathers-marrying-sons-avoid-inheritance-tax-video_n_3012356.html http://www.huffingtonpost.co.uk/2013/04/04/jeremy-irons-woul...
molecule 13y ago
Other valid and antiquated instances of this loop-hole: marry great-granddaughter/-son.
- maaku 13y ago
  That's covered in the article (tl;dr: explicitly not allowed).
  - dllthomas 13y ago
    Where?
    - lstamour 13y ago
      "How about a grandfather marrying a granddaughter? That’s prevented here in Massachusetts by MGL Ch. 207" and it goes on to list details.
      - mooism2 13y ago
        But it doesn't include great-granddaughter.
        lstamour 13y ago
        Sigh. Too many greats (and hyphens). Thanks for the correction.
      - dllthomas 13y ago
        I don't see "great" anywhere (as verified by a search) and I don't see anything that would amount to it ("daughter of grand-daughter" or similar, but that is harder to verify by search).
        lstamour 13y ago
        I feel like it's implied, but indeed I see that I mis-read the question. Given that newborns likely can't get married, I'm not sure how likely it is. It does occur to me, given a time machine, a lot of laws would have loopholes. ;-)
        dllthomas 13y ago
        If every generation of a family marries and has kids as soon as marriage is legally permitted (15 in some states, if memory serves), one can theoretically be 60 when their great-grandchild becomes eligible for marriage. Unlikely, but certainly possible.
VladRussian2 13y ago
as far as i heard, Immigration, before issuing the marriage-based Green Card, may grill very seriously (various pretty intimate details, etc...) trying to determine whether the marriage is real. Don't think that IRS would do less when it comes to (multi)millions. For example: http://marriage-and-immigrationlaw.blogspot.com/2007/09/must-marriage-be-consummated.html http://marriage-and-immigrationlaw.blogspot.com/2007/09/must...
- Pinckney 13y ago
  Entering into a marriage to evade immigration laws specifically made a felony by statute. (8 U.S.C. § 1325). http://www.law.cornell.edu/uscode/text/8/1325 http://www.law.cornell.edu/uscode/text/8/1325
dkokelley 13y ago
While this is an interesting side-effect of the expanding legal status of marriage, to my knowledge this 'wealth-passing' matter has been mostly solved by savvy accountants and tax attorneys. Dynasty Trusts generally provide a satisfactory mechanism for bypassing the GST. See: http://en.wikipedia.org/wiki/Dynasty_trust http://en.wikipedia.org/wiki/Dynasty_trust
midas007 13y ago
This article begs the question: Would entering into a marriage to evade GST be against any specific law(s)?
ddd1600 13y ago
Lol yeah Jeremy Irons was the first person I heard to figure this out, Stephen Colbert did some HILARIOUS bits on this past year

53 points by soundsop 13y ago

sixQuarks 13y ago

I can see this scenario becoming the plot of a feel-good comedy movie

troymc 13y ago
Here's a song for the soundtrack: https://www.youtube.com/watch?v=q0s5Kn9QXtU https://www.youtube.com/watch?v=q0s5Kn9QXtU

tantalor 13y ago

See also http://www.huffingtonpost.co.uk/2013/04/04/jeremy-irons-would-gay-marriage-fathers-marrying-sons-avoid-inheritance-tax-video_n_3012356.html http://www.huffingtonpost.co.uk/2013/04/04/jeremy-irons-woul...

molecule 13y ago

Other valid and antiquated instances of this loop-hole: marry great-granddaughter/-son.

maaku 13y ago
That's covered in the article (tl;dr: explicitly not allowed).
- dllthomas 13y ago
  Where?
  - lstamour 13y ago
    "How about a grandfather marrying a granddaughter? That’s prevented here in Massachusetts by MGL Ch. 207" and it goes on to list details.
    - mooism2 13y ago
      But it doesn't include great-granddaughter.
      - lstamour 13y ago
        Sigh. Too many greats (and hyphens). Thanks for the correction.
    - dllthomas 13y ago
      I don't see "great" anywhere (as verified by a search) and I don't see anything that would amount to it ("daughter of grand-daughter" or similar, but that is harder to verify by search).
      - lstamour 13y ago
        I feel like it's implied, but indeed I see that I mis-read the question. Given that newborns likely can't get married, I'm not sure how likely it is. It does occur to me, given a time machine, a lot of laws would have loopholes. ;-)
        dllthomas 13y ago
        If every generation of a family marries and has kids as soon as marriage is legally permitted (15 in some states, if memory serves), one can theoretically be 60 when their great-grandchild becomes eligible for marriage. Unlikely, but certainly possible.

VladRussian2 13y ago

as far as i heard, Immigration, before issuing the marriage-based Green Card, may grill very seriously (various pretty intimate details, etc...) trying to determine whether the marriage is real. Don't think that IRS would do less when it comes to (multi)millions. For example: http://marriage-and-immigrationlaw.blogspot.com/2007/09/must-marriage-be-consummated.html http://marriage-and-immigrationlaw.blogspot.com/2007/09/must...

Pinckney 13y ago
Entering into a marriage to evade immigration laws specifically made a felony by statute. (8 U.S.C. § 1325). http://www.law.cornell.edu/uscode/text/8/1325 http://www.law.cornell.edu/uscode/text/8/1325

dkokelley 13y ago

While this is an interesting side-effect of the expanding legal status of marriage, to my knowledge this 'wealth-passing' matter has been mostly solved by savvy accountants and tax attorneys. Dynasty Trusts generally provide a satisfactory mechanism for bypassing the GST. See: http://en.wikipedia.org/wiki/Dynasty_trust http://en.wikipedia.org/wiki/Dynasty_trust

midas007 13y ago

This article begs the question: Would entering into a marriage to evade GST be against any specific law(s)?

ddd1600 13y ago

Lol yeah Jeremy Irons was the first person I heard to figure this out, Stephen Colbert did some HILARIOUS bits on this past year