All good points about the estate tax, FLU — unfortunately they’re not borne out by the facts. Just as your maximum 401K contributions are adjusted every few years for inflation by Congress, so are the minimums for the estate tax (you can see the details on that IRS page I posted a link to earlier). They will likely increase in the future as our dollars devalue — our congressmen definitely listen to those people affected by it. As for how many people are affected by it, it’s 2% of the population (see the article about Gates, Sr for that number). Again, if you’re one of those 2%, it’s kind of a drag but let’s face it your kids need to get out there and work to improve this country, not sit on a big pile of daddy’s dough. I guess seeing all of those worthless rich families in Europe and South America that haven’t done anything of value in 1000 years has sensitized me to this topic! I really don’t want that to happen here, even if it means my kids might have to buck up and work a little harder, just like their daddy did.
Oh, and of course there’s a very easy way to keep that extra cash from going to Uncle Sam — just give it away to the charity of your choice. The threat of the estate tax has been invaluable in preserving our institutions of higher learning, in advancing our medical research, etc… FWIW, I would never let the government take my estate either, I’d donate it for diabetes or MS research before I’d let that happen.
