How did Donald Trump get so darned rich?
He’s been telling the tale for decades: by dint of intelligent application, hard work and the luck that goes to the guy who’s playing the game the hardest, not to say the most ruthlessly.
This is an old tale that Americans traditionally love. But the real story is always the same. How did he get so rich, really? Simple: he got his start-up capital from his old man: his rich, generous and wily – in the sense of legally avoiding the tax man – big daddy.
President Trump benefitted from this pass-it-on phenomenon, and now you can, too – that is, if you’re pretty darned wealthy. The gift and estate tax laws have been tweaked to make his family’s version of the American dream all the easier for high-net-worth individuals.
Under the new regime, wealthy gift-givers can transfer nearly $11.2 million in the form of gifts to individuals. The largesse can be handed out while the giver is alive or in the form of bequests. A married couple can double this limit. No gift or estate taxes are assessed for such transfers.
This tax regime will only be in place through 2025. After that, the old rules are scheduled to be reimposed, with the limits at $6 million for individuals and $12 million for couples.
Most wealthy people will not need to worry much about either limit – your portfolio needs to reside in the stratosphere if they don’t meet your needs. There’s other ways to give tax-free, which should be considered as part of any substantial gift-giving strategy. A one-time present up to $15,000 doesn’t count against the gift or estate tax limit, and medical and educational expenses are exempt, as well. These are just a few of the opportunities available for wealthy people to ensure that their resources get into the hands of people they choose – hopefully, the type that can make it grow.
For more information, please read:
How the ultra-rich can transfer wealth to loved ones without getting hosed by gift and estate taxes | Marketwatch