Obama Watches While Millionaires Make Up To $1M per Hour Beating the Fiscal Cliff with Irrevocable Trust, Comments UltraTrust.com

Estate Street Partners affirms that individuals with assets only have a limited time to save millions before the Tax Relief Act expires December 31, 2012.

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Obama Looking Disgusted that Irrevocable Trust Protects the Rich from Estate Tax

Obama Looking a Bit Befuddled by it All

If you do nothing and are asset rich, but cash poor, this means that your heirs will need to have a fire sale to raise money for the IRS - it happens very frequently to business and real estate owners.

Boston, MA (PRWEB) December 13, 2012

Marginal estate tax rates are reverting back to 55% on Jan 1, 2013 and that means that Millionaires can pass onto their heirs up to $1M per hour more than they would have been able to if they take no action. “When we put together estate planning, we do most of the work,” explains Rocco Beatrice of UltraTrust.com, “Whatever firm you decide to use to get an irrevocable trust drafted, your part comes down to a few hours of information gathering. An amazing amount of money can be saved before the end of the year. For a married couple with a 10 million dollar estate, they can save estate taxes and gift taxes of 4.4 million dollars. If you don’t have a $10M estate, you’ll save 55 cents on every dollar over $2M for a married couple and 55 cents on every dollar over $1M for a single person. Even if you are $100,000 over, you could save $55,000 for your family."

The problem behind the 2013 reduction of the exemption is that the marginal estate tax rates are reverting back to 55% on Jan 1, 2013 as politicians bicker over how they will spin the next tax increase. The fiscal cliff looming and so is the estate and gift tax cliff. “The smart millionaires will be gifting their assets to an irrevocable trust, and protecting those assets in order to minimize the amount going to the government,” Rocco Beatrice of UltraTrust.com says, “They can save up to 4.4 million dollars for their families.” Acting now, thwarts President Obama. For a couple hours of information gathering Obama, is willing to let all these tax dollars stay with the families that worked hard to grow their wealth.

Merrill Lynch and Cap Gemini reported in their 2011 World Wealth Report that the U.S. had 3.1M millionaires. Furthermore, they defined household wealth by excluding their personal residence and only including liquid assets. Based on this and other research, Rocco Beatrice of UltraTrust.com, estimates 2.1M have assets of $5M or more.

And based on this estimation, if all millionaires worth $5M or more took advantage of this tax loophole before the January 1, 2013 deadline, the IRS would be giving up more than $4 trillion in total tax breaks.

"In laymen's terms, this means that if an individual worth $5 million, including their home and investments, decides to gift this amount to their children to save on estate taxes after December 31, 2012, then their children will have to pay $1,750,000 in gift taxes. If one fails to gift anything and then passes away in 2013 or beyond, their children will need to pay $2,200,000 in estate taxes as heirs."

"Because the IRS is not very forgiving, if you are asset rich, but cash poor, this means that your heirs will need to have a fire sale to raise money for the IRS - it happens very frequently to business and real estate owners," warns Rocco Beatrice, Managing Director of UltraTrust.com.

"If you are worth $2.5 million and do your gifting in January, it will cost you $900,000 more than it would in 2012. If you fail to gift anything and pass away in 2013 or beyond, your heirs will need to come up with $825,000 for estate taxes."

Until the end of 2012, each spouse may gift any amount up to $5.12 million. Assets can be gifted to an irrevocable trust such as the premium UltraTrust® irrevocable trust which eliminates probate and estate taxes upon transference of the assets to heirs after the parents pass away.

"By having a gift tax exemption level up to $5.12 million, so much money can be saved in potential estate taxes. It is truly an once-in-a-lifetime tax savings opportunity that should not be passed up. If you have an estate that contains assets worth more than $1 million, this is something you should definitely take advantage of. Since the exemption will soon drop back to $1 million [on January 1, 2013], there is no better time to plan. This is just good estate planning; and if your advisor has not brought this to your attention or suggested a Living Trust, it is time to become your own advocate."

"We have never seen breaks this size before 2011, but with the U.S. deficits and the attacks by Obama and the Democrats on the wealthy, it is highly likely that we will never see this size of a tax break again either," says Rocco Beatrice.

About Estate Street Partners (UltraTrust.com):
Estate Street Partners protects assets from frivolous lawsuits while eliminating estate taxes and probate, and ensuring superior Medicaid asset protection with our Premium UltraTrust® Irrevocable Trust. Estate Street Partners can be contacted at (888) 938-5872 to learn how millions of dollars of income, estate, and capital gains taxes can be saved.

Sources:
irs.gov/businesses/small/article/0,,id=108139,00.html
irs.gov/publications/p950/index.html
blogs.wsj.com/wealth/2011/06/22/u-s-has-record-number-of-millionaires/
press-releases.ultratrust.com/irs-giving-away-trillions-to-heirs-of-millionaires.html


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Lifetime Gift Tax Exemption Maximum's Over the Last 30 Years Lifetime Gift Tax Exemption Maximum's Over the Last 30 Years

Provides Perspective on How Big this Gift From the IRS Really Is