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Bill Gates and Warren Buffett are two of the wealthiest people in the world. So how with their estates escape the 40% estate tax that the government would expect to get when they pass away.
Each of them has an estate that is valued somewhere in the neighborhood of $100 billion. So you would think that, at their death, billions would be due to the IRS in the form of the federal estate tax within nine months of the date they passed away.
Let's look at an example of a married couple that has, compared to these two, a "measly" $1 billion estate. After both of those spouses die leaving their estate to their children, their estates will owe about $390 million to the IRS.
Here's how they will get around the estate tax:
When the first spouse dies, that spouse can leave their estate to or for the surviving spouse, so long as the bequest qualified under the unlimited estate tax marital deduction. Then, when the surviving spouse dies, the surviving spouse will leave their estate to a charity or charities pursuant to the unlimited estate tax charitable deduction.
Perhaps they are thinking that instead of leaving billions to their kids, and billions to the United States Treasury, they will leave "enough" to their kids with the bulk going to charitable causes. Perhaps they think that the charities can more efficiently use their resources to do good, more so than the United States government could.
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This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: (225) 329-2450
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By: America's Estate Planning Lawyers
Title: How Bill Gates and Warren Buffett Estates Will Pay ZERO Estate Tax
Sourced From: www.youtube.com/watch?v=EUj0nCxVmpQ
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Did you miss our previous article...
https://trendingintaxation.com/videos/the-mathematics-of-estate-tax-planning
