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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Jon Stept who wrote (15063)	7/16/2000 3:43:52 PM
From: Karin	Read Replies (1) \| Respond to of 15132

Jon, The way I look at it: We are talking about money, (for example) that your dad has made in his life-time. You, your brothers and sisters and your mother are all living under the same roof. Just because your dad suddenly died, the Government feels it is their right to take 55% away from your family! Your dad may have died at a young age of 35, or at an old age. It is still money, that was made by this family. And was accumulated through a THRIFTY lifestyle. Your family saved, to accumulate enough to retire without worries. Well- what the heck! Why should we save and scrimp all our lives, if more than 1/2 (55%) is ending up at the Government, where it is wasted on a 25 million TV campaign for the Democratic Party? Well, I will do all I can to avoid this confiscation tax. Don't forget, this money has been taxed already!!

To: Jon Stept who wrote (15063)	7/17/2000 2:59:00 AM
From: djia101362	Read Replies (3) \| Respond to of 15132

John- Let me try and help answer this question about the estate tax. I'll give you an example of how the estate tax works and you tell me if you think it's fair. Let's say son is the only child and he has one surving parent left, let's call him P. In 1999, the only asset P has is $4M in INTC stock at of cost of $1M, meaning he has a built in gain of $3M. On 12/31/99, P sells all $4M of the INTC stock. He pays income tax of $600K (20% tax rate on $3M gain) leaving him w/ $3.4M in cash. On 7/1/00, P dies with $3.4M in his estate and it all goes to son. After Uncle Sam slaps on the estate tax of $1.5M ((3.4M - 675K) x 55%), son is left w/ $1.9M. The $4M P had just 8 months ago is now $1.9M, and Uncle Sam got over 50% of it. Let's assume P did not sell the INTC stock and died, in this case the estate tax would be $1.8M, and son would be left w/ $2.2M. Either way, Uncle Sam gets a big chunk. I don't like the sound of it and I think most people w/ any kind of self-created wealth feel the same way. For those that do not exceed the unified credit of $675K, it really doesn't matter. This is just a very simplified example and w/ proper estate planning, some of the tax could be avoided. But w/out proper planning, this example is very real and the outcome would be just as I stated.