Suppose a person has an asset with a $1 million cost basis that is worth $4 million at the time he dies.
The transfer of the asset’s ownership to the heirs is documented as an asset sale, triggering a tax on the $3M capital gain. If the current capital gains tax rate is 20%, then a $600,000 tax liability is incurred by the estate.
One special provision I would consider adopting is a ten-year tax deferral period … meaning the estate or heirs have ten years to pay the $600,000 tax bill.
“ One special provision I would consider adopting is a ten-year tax deferral period … meaning the estate or heirs have ten years to pay the $600,000 tax bill.”
Disagree 100%. Not only doesn’t the government deserve a cut of this action, they would only waste it on crap. It’s well past the time where we force them to retreat back to only doing their Constitutionally identified duties. Taking a cut of your estate when you die isn’t part of that.