Questions tagged [estate-tax]

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U.S. Estate/Gift Tax: If Previously Gifted Asset Is Brought Back Into Estate At Death, How To Account For Prior-Filed Gift Tax Return?

This question is about U.S. estate/gift tax law. Imagine a scenario where a parent gifts an asset to the child, i.e. a $500k house, in an irrevocable grantor trust. It's a "completed gift" ...
1 vote
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Gifting The Same Asset Back & Forth - 2x Exemption Used? Or $0 Exemption Used? (U.S.)

I have a question about U.S. estate/gift tax law. Imagine one person gifts an asset - i.e. a $1 million house - to another, & files a gift tax return in the year in which it was gifted. Then ...
3 votes
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Would cash held in a US brokerage account by a non-resident alien be subject to US estate tax?

According to the IRS page, it seems like the answer is a no, as cash is neither US real estate, tangible property or securities of US companies. U.S.-situated assets include American real estate, ...
3 votes
4 answers

What's the official reasoning behind "stepped-up basis" when selling inherited property?

Note: "official" here means "on-paper". Meaning: I'm not asking what's the true reason this stepped-up basis calculation exists, but rather how it's justified on paper. This is to prevent this from ...
2 votes
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is a US brokerage account for non-resident considered to be a US situs asset?

Assume a person that's not domiciled in the US. That person has a US brokerage / trading account (say in Fidelity or Charles Schwab) that holds shares of various listed companies (both US-based and ...
-2 votes
3 answers

What stops someone from abusing the Annual Gift Exclusion Amount?

Let's assume this hypothetical. My son is now 18 years old. Since he was 8, I've been setting aside the annual gift exclusion amount and placing it in a safe in my house. With snipers guarding said ...
4 votes
2 answers

Maximizing the Cost Basis Reset on Death

Consider the case of a married couple, living in the USA, with appreciated stocks and bonds in a living revocable trust worth between 1 and 5 million dollars. The husband then dies leaving everything ...
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1 answer

Life insurance rider

My estranged spouse was listed as a rider on my life insurance policy since 1987, we have been separated since 2009 and I have paid all premiums on the policy. My sons are the beneficiaries on the ...
1 vote
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How to distribute a partnership K-1 (1065) other income item (line 11B) to heirs on a K-1 (1041)

I have a partnership K-1 (1065) which shows an amount on the "other income" line (line 11B). I am distributing this to the heirs, as the designated recipient died and I am the executor of the estate. ...
3 votes
4 answers

Estate taxes and the top 1 percent by net worth

According to this website, you need to have over 10 million dollars for your family to be in the top 1 percent by net worth. However, only about .2 % of estates pay estate tax. The cut off for the ...