Burial insurance/plot | TigerDroppings.com
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fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
21043 posts

Burial insurance/plot

Any tax breaks for this?

Thanks.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Burial insurance/plot
I'm pretty sure the answer is no.


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756
LSU Fan
Member since Sep 2004
10669 posts

re: Burial insurance/plot
Yep when you occupy the plot you no longer pay taxes


OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4543 posts

re: Burial insurance/plot
quote:

Yep when you occupy the plot you no longer pay taxes




756
LSU Fan
Member since Sep 2004
10669 posts

re: Burial insurance/plot
Gary Larson recently had a hilarious FAR Side comic with the Grim Reaper sitting in the office of an IRS agent


LSURussian
LSU Fan
Member since Feb 2005
85145 posts

re: Burial insurance/plot
quote:

Yep when you occupy the plot you no longer pay taxes


If only that were true......inheritance taxes.


OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4543 posts

re: Burial insurance/plot


Too funny and so true...


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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Burial insurance/plot
quote:

If only that were true......inheritance taxes


I almost posted this 2 days ago. But there is a grey area. It's technically the heirs who pay.


LSURussian
LSU Fan
Member since Feb 2005
85145 posts

re: Burial insurance/plot
quote:

It's technically the heirs who pay.

True, but it comes out of the dearly departed person's estate,which is what he accumulated before he assumed room temperature.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Burial insurance/plot
quote:

True, but it comes out of the dearly departed person's estate,which is what he accumulated before he assumed room temperature.


Right. Even though he could have already paid taxes on it. Estate tax is my most hated tax ever.


Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13993 posts

re: Burial insurance/plot
quote:

Right. Even though he could have already paid taxes on it. Estate tax is my most hated tax ever.

Will never understand people who say this. I would much rather pay my taxes after I'm dead than when I'm alive -- seems like a no brainer. The widespread hatred of the estate tax is, I think, a triumph of marketing over rationality.


OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4543 posts

re: Burial insurance/plot
quote:

I would much rather pay my taxes after I'm dead than when I'm alive -- seems like a no brainer.


Why should you have to pay taxes at all if you are just passing money to your heirs?


Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13993 posts

re: Burial insurance/plot
quote:

Why should you have to pay taxes at all
I mean, I would prefer not to. But here's the thing. Assuming that death & taxes are inviolable, we will have to pay some taxes in some form. Inheritance/estate/death taxes (whatever you want to call them) are the least distortionary tax, precisely because everyone is going to die and there's nothing you can do to avoid it. It also strikes me as the most fair tax because its incidence falls upon people who didn't really earn the money; i.e., the heirs. For that same reason it strikes me as a pro-meritocratic tax. As opposed to, say, the income tax, which punishes you for being a high earner, the estate tax just punishes you for being related to a high earner.

Obviously estate taxes aren't perfect, and I wouldn't suggest that the government be funded 100% by estate taxes. And Poodlebrain can probably talk more intelligently than I can. But I am quite convinced that the efficient amount of estate taxes is something other than zero (which is what it effectively is now).


OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4543 posts

re: Burial insurance/plot
Are there any ways around this?

For example, say someone is getting up there and health is starting to decline. Could that person send money once a year at an amount just under the amount that would get taxed as a gift? I believe it is $10k-$12k.

I get your point and understand the logic behind it, but damn, it just pisses me off that I have been taxed on that money my whole life, through income, interest, etc., and would try to leave my kids something only to get taxed again.

For lets just say a $100,000 gift upon someon'e death. roughly how much would the heirs receive?


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
13257 posts

re: Burial insurance/plot
quote:

For lets just say a $100,000 gift upon someone's death. roughly how much would the heirs receive?


$100,000. It has to be a fairly substantial estate for inheritance taxes to kick in.


OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4543 posts

re: Burial insurance/plot
quote:

It has to be a fairly substantial estate for inheritance taxes to kick in.


Estimate of what is fairly substantial?


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Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13993 posts

re: Burial insurance/plot
quote:

For lets just say a $100,000 gift upon someon'e death. roughly how much would the heirs receive?

The heirs would receive 100%. The estate tax only applies to multimillionaires (unless Ala. has a state estate tax with a lower cutoff; a few states do, but I seriously doubt Ala. is one of them). Many people rail against the estate tax but don't realize it doesn't apply to them or anyone they know.

And for those multimillionaires, there are certainly some legal estate tax avoidance schemes which, again, Poodlebrain would be better off commenting on. Just as there are income tax avoidance schemes. One of the benefits of wealth is that it buys you better attorneys.


OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4543 posts

re: Burial insurance/plot
quote:

Cold Cous Cous


Thanks! Yeah, probably a good bet that it will not apply to me when that time comes.



Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13993 posts

re: Burial insurance/plot
quote:

Yeah, probably a good bet that it will not apply to me when that time comes.

Well assuming you're not planning on dying right away, you really don't know what the cutoff will be when you do go. The estate tax cutoff jumped around a lot during the first decade of the 2000s, from somewhere around $1 million to $8 million, and (IIRC) there actually was no estate tax for a short time. No telling what Congress or the state leg's will do in the future.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Burial insurance/plot
The only problem is that often that money has already been taxed. When the owner earned it. Now the heirs get it and they are taxed again. It's bullshite


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