First, I hope this quick note finds everyone healthy and living the way they want to live. I just want to follow up with all of you and with a conversation all the parents just had with the family’s attorneys and the family estate.
In regard to Family Estate, they are able to “gift” certain amounts of monies to the heirs of their estate. The current administrations would allow the greatest amount of monies to be held back by law. But, in our conversations with the attorneys, they suggest coming up with a plan that would help shelter some of this estate money if the current administration were to lose office. Both attorneys have studied this and Biden has stated he will change this law immediately The change is scheduled to happen as soon as Jan.1,2021.
To put this in real numbers to everyone , it would mean that a $6,000,000 deduction would be lost. The Biden government would just take this away.
You might say, well it was never mine, or it’s not that much so what do I care? To wit , D took chances in investing in real estate, we all have had the luxury of being a recipient in one form or another… D have paid literal millions on tax’s paid to the state & federal government. D paid taxes on that original amount when he made money on it. So arguable it was $12,000,000 at one point before he had to pay his tax’s. Our attorneys are helping us navigate this political climate but can only do so much.
For further thoughts on $6,000,000 and what that means broken down by each family
First, the $6 million would be actual property. Both attorneys anticipate that they can get a minimum 25-30% reduction in property value based on both d 49% interest on these properties. i.e. a non-controlling interest. So, for example the 12 million d made, became 6 million after taxes paid, which now is 6 million in property value. Attorneys both feel that they can get a deduction in property value on these non-controlling ownership values. Discounting a 6-million-dollar property would add 1,500,000. So, the total approx. savings of the current tax structure would save a combined $7,500,000 , or $2,500,000 per family.
If Biden gets in, you get $ 0 Nothing for each family on this $7,500,000 deduction .
i do not want this at all to be taken politically, I just want you all to be informed on what we have just learned yesterday.
Actions or inactions have consequences, not just your life, but for future generations.
As a side bar to your d - He built so many charitable institutions that give back to people, ICA- (possibly largest food bank ), housing for section 8 folks, church expansions, donations to programs to help women and children ,etc. If the government takes a huge chunk of money a lot of folks will not be able to give to programs because they as we will be tapped out.
