Could someone explain or point out a website that explains how this tax works in plain english. I'd like the main concepts to be explained first so that I will have an easier time understanding all the details.
The way I understand it, transfers to people younger than you are subject to the tax, even if they are not related. You are given an exemption amount, after which you are taxed the same as the estate tax. Taxable distributions and terminations are tax inclusive, and direct skips are tax exclusive. Inclusive means the tax is actually taken out of the gift itself, so the person getting the gift gets substantially less.
I also know there are a lot of details dealing with trusts, but I don't really understand them. I'm taking an online CFP class and I'm finding it difficult to read through this section and understand it.
2006-07-12
09:24:20
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2 answers
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asked by
Tommy
2
in
United States