Discussion:Moving to Avoid the Estate Tax
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| Revision as of 16:32, 31 October 2009 Guya (Talk | contribs) (Just to be clear) ← Previous diff |
Revision as of 18:24, 31 October 2009 KatieJ (Talk | contribs) (Seems to me it's) Next diff → |
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| {{ForumReplyPost|UserID=Guya|Date=31 October 2009|Text=Just to be clear Floridacpa is out of the date as the Jobs Act was replaced by Heart Act expatriations in 2008. For some people these are really good ways to avoid US estate taxes...}} | {{ForumReplyPost|UserID=Guya|Date=31 October 2009|Text=Just to be clear Floridacpa is out of the date as the Jobs Act was replaced by Heart Act expatriations in 2008. For some people these are really good ways to avoid US estate taxes...}} | ||
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| + | {{ForumReplyPost|UserID=KatieJ|Date=31 October 2009|Text=Seems to me it's a question of whose money the client would be saving -- once I'm dead and gone, it's not my money, it's my heirs' money, and how much do I care how much they get? With any luck I'll live long enough to use it all up anyway <G>. My point is that moving to another state is not an easy thing for older people to do, and in order to make this work, the client must make a clear change of domicile. You can only have one domicile at a time, but states may argue over which is a person's true domicile. Most of the litigation over domicile has been in the context of estate or inheritance taxes. Think of Howard Hughes and Marilyn Monroe, for example. So the client has to REALLY move to the new state and make it his permanent, primary home. No keeping ties in the former state and running back and forth. If the children and grandchildren are back in the old state, Grandma and Grandpa are likely to tell you one thing and do another <G>. On the other hand, if they'll be moving to a state where they have family members and other connections already, it's more likely to be successful. | ||
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| + | So, why not? Personal, family, emotional reasons. Moving is inconvenient and expensive, but the major costs may be non-monetary. The question is whether it is really worth it to the client to go to the trouble and expense of moving, to say nothing of going to a new place where they have no friends, no family, no connections and start over, just to save some tax money for their heirs. Let them enjoy the rest of their lives and the heirs take the consequences.}} | ||
Revision as of 18:24, 31 October 2009
Discussion Forum Index --> Basic Tax Questions --> Moving to Avoid the Estate Tax
Discussion Forum Index --> Tax Questions --> Moving to Avoid the Estate Tax
| 31 October 2009 | |
| At what point do you advise a client to relocate to avoid estate taxes? Ultimately, that is a personal decision, but if money can be saved, why not? | |
Floridacpa (talk|edits) said: | October 31, 2009 |
| The client could be subject to US taxes for up to ten years - depends on the situation (assuming they move to another country and give up US citizenship). | |
| 31 October 2009 | |
| Not relocating to another country - although that is an idea! Just moving to a state without any death or inheritance taxes. | |
| 31 October 2009 | |
| Just to be clear Floridacpa is out of the date as the Jobs Act was replaced by Heart Act expatriations in 2008. For some people these are really good ways to avoid US estate taxes... | |
| 31 October 2009 | |
| Seems to me it's a question of whose money the client would be saving -- once I'm dead and gone, it's not my money, it's my heirs' money, and how much do I care how much they get? With any luck I'll live long enough to use it all up anyway <G>. My point is that moving to another state is not an easy thing for older people to do, and in order to make this work, the client must make a clear change of domicile. You can only have one domicile at a time, but states may argue over which is a person's true domicile. Most of the litigation over domicile has been in the context of estate or inheritance taxes. Think of Howard Hughes and Marilyn Monroe, for example. So the client has to REALLY move to the new state and make it his permanent, primary home. No keeping ties in the former state and running back and forth. If the children and grandchildren are back in the old state, Grandma and Grandpa are likely to tell you one thing and do another <G>. On the other hand, if they'll be moving to a state where they have family members and other connections already, it's more likely to be successful.
So, why not? Personal, family, emotional reasons. Moving is inconvenient and expensive, but the major costs may be non-monetary. The question is whether it is really worth it to the client to go to the trouble and expense of moving, to say nothing of going to a new place where they have no friends, no family, no connections and start over, just to save some tax money for their heirs. Let them enjoy the rest of their lives and the heirs take the consequences. | |
