Author Topic: David Koch dead at age 79. What about the estate tax?  (Read 589 times)

bwall

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David Koch dead at age 79. What about the estate tax?
« on: August 23, 2019, 08:31:12 AM »
I must admit that I wasn't a fan of the man. I think that in sum he had a negative impact on America. But, that's just because my values did not line up with his values. I'm sure that he would feel differently.

Anyways, the estate tax of 40% comes in to play above $11m (or so) this year. His net worth was reported to be $42b, so will the IRS be cashing a check for $16b to help pay for Trump's tax cuts?

Or did he set up a trust with all his money and name his heirs as beneficiaries? If this is the case (and I believe it is), then wouldn't his net worth be zero?

TheContinentalOp

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #1 on: August 23, 2019, 10:14:13 AM »
Wasn't Koch married? Doesn't that mean his wife can get his entire net worth tax-free?

https://www.investopedia.com/terms/u/unlimited-marital-deduction.asp

KBecks

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #2 on: August 23, 2019, 10:43:40 AM »
His wife is alive and 57 years old. 

Cassie

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #3 on: August 23, 2019, 10:48:38 AM »
I say good riddance to a terrible person.

ctuser1

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #4 on: August 23, 2019, 11:00:27 AM »
Estate Tax? Eh!!

I don't know much of Mr. Koch's finances. But billionnaire's don't pay such taxes, including estate taxes. There are many estate planning attorneys who will set up proper generational trusts and such so that you can avoid it too - provided you need it and can pay for it.

Those stupid tax laws are only for lowly humans like us. The libertarian overlords exist on a different plane, 'more equal than others' in Orwell's lingo, not subject to our laws!!



bwall

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #5 on: August 23, 2019, 01:38:27 PM »
Great replies, thank you all.

Yes, it appears that Mr. Koch's widow is much younger than he was. I wonder if he left her most of his estate to do with as he wished? Or did he lock it up in a trust for the benefit of his children/grandchildren, etc? I doubt he'd leave tens of billions to his widow so that she could spend the money on the next Mr. Right. But, maybe he was so generous after all? ¯\_(ツ)_/¯

It appears that he does have a trust, but with assets registered at a paltry $30m in 2015 and trending lower.  https://projects.propublica.org/nonprofits/organizations/480926946

I wonder where the other $42 billion are?

dragoncar

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #6 on: August 23, 2019, 04:20:25 PM »
Estate Tax? Eh!!

I don't know much of Mr. Koch's finances. But billionnaire's don't pay such taxes, including estate taxes. There are many estate planning attorneys who will set up proper generational trusts and such so that you can avoid it too - provided you need it and can pay for it.

Those stupid tax laws are only for lowly humans like us. The libertarian overlords exist on a different plane, 'more equal than others' in Orwell's lingo, not subject to our laws!!

I don't think you can use trusts to avoid taxation on billions, but if you do LMK how.  Obviously it could have been used to lock in a relatively paltry exemption.  Perhaps there was a glitch in 2010 that made it temporarily possible.
« Last Edit: August 23, 2019, 04:23:04 PM by dragoncar »

ctuser1

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #7 on: August 23, 2019, 04:46:03 PM »
Estate Tax? Eh!!

I don't know much of Mr. Koch's finances. But billionnaire's don't pay such taxes, including estate taxes. There are many estate planning attorneys who will set up proper generational trusts and such so that you can avoid it too - provided you need it and can pay for it.

Those stupid tax laws are only for lowly humans like us. The libertarian overlords exist on a different plane, 'more equal than others' in Orwell's lingo, not subject to our laws!!

I don't think you can use trusts to avoid taxation on billions, but if you do LMK how.  Obviously it could have been used to lock in a relatively paltry exemption.  Perhaps there was a glitch in 2010 that made it temporarily possible.

Most billionaires use much more complicated mechanisms. Some are clearly abusive, but apparently defensible in court. Most of these mechanisms are not discussed in the public realm, just some leak out.

Mitt Romney had a 100mm Roth account. Think how hard it is to land with @5000/yr..

Trump Sr. gave a total of ~900MM to trump brothers and sisters as inheritance and gifts. Guess how much inheritance taxes they paid on that. It’s now, after the NYT investigative reporting on that, that NY has opened an investigation.

The ‘conservative’ billionaires DO NOT consider themselves subject to the same rules and laws as us (this is as opposed to the more ethical variety like Buffet/Gates etc who do actively and repeatedly bring attention to these absurdities).



RetiredAt63

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oldtoyota

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #9 on: August 23, 2019, 05:52:52 PM »
I say good riddance to a terrible person.

I hope whoever inherits the money or whatever the foundation is that controls the money will not be as evil.

KBecks

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Re: David Koch dead at age 79. What about the estate tax?
« Reply #10 on: Today at 09:39:44 AM »
Julia Flescher (his wife) seems to be very into the NYC art scene.

https://heavy.com/news/2019/08/david-koch-wife-julia-flesher/