tsmith69
Jul 4 2000, 04:41 PM
I am 68 years old and in good health. I have $1,500,000 in a traditional IRA all in stocks. I am debt free and need very little to live. $25,000 yearly is all I need to be happy and take care of all needs. I have three sons I want to leave as much as I can when I pass. Uncle Sam is not one of them. I plan to sell off about $250,000 in 2000 and another $500,000 Jan 1, 2001. I pay the taxes in 2000 and pay witholding for the $500,000 and both come to about $300,000. I then convert $750,000 to $800,000 to a Roth and I pay the $320,000 out of the personal account. I leave it alone for 5 years. Say it grows to $1,500,000 and the estate deduction is $1,000,000. Is this estate tax immune from estate taxes?
BPickerCPA
Jul 6 2000, 12:34 AM
Estates are tax inclusive. That means you are paying estate taxes on the money used to pay estate taxes.
With an estate that large, and in IRAs, you should be seeking out a competent IRA planner/estate planner. The fee will be small compared to the savings a competent planner can effect.
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Barry Picker, CPA/PFS, CFP
New York, NY
www.BPickerCPA.com