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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (33300)	12/15/2020 8:07:06 PM
From: E_K_S	2 Recommendations Recommended By B.K.Myers Mannie Read Replies (1) \| Respond to of 34328

Not really that bad, better than the 2006 levels. When I was administering my Dad's estate, I believe the estate tax level was around $2 million. That included his real estate, stock trust for his grandkids and siblings and other accumulated gifts during his lifetime. Gifts/Trusts set up during his lifetime for the grandkids did not receive a step up in basis but I believe we funded those mostly w/ cash (those were Vanguard mutual funds). The stocks to siblings did receive a step up in basis based on the date of my Dad's death. Many of those stocks were dividend payers and to this day, many of my siblings (including me) still hold those stocks. The big issue that I have read is/was for the small farmer where families that want to pas the farm and farm assets to their kids. Unless the operation is/was structured in a special way, many of these small family owned farms exceeded these limits (even at the current levels). The estate had to pay those 'death' taxes usually by selling off assets (including farm acreage). That made it even harder to turn a profit w/ less acreage to farm. I am sure legislation will address these special circumstances. --------------------------------------------------- My conclusion is try to start early w/ gifts to grandkids (setting up their own accounts) as you get a 'life time' cumulated gift exception (of $1mln). Be sure you (and the trustee and/or successor trustee) keep track of these gifts as they are tax exempt at the time of your death (only the amount that exceeds the gift exception is counted in the life estate) . The young kids have a lifetime to reinvest their dividends (w/ Mom & Dad helping of course) and the income generated is paid at the lower kid's rate. My Grandma funded 5 grandkids college accounts including one Doctor. My Dad funded 5 grandkid's college accounts including a PHD, MBA and RN all have made great contributions and done w/ dividend payers (and Vanguard mutual funds). A dividend stock is a gift that keeps on giving EKS