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not saying nuts to you, Bob, but to the idea, which has
been given to me by a lot of folks.
I like your succinctness. ‘The only way to reduce
the taxes on my estate is for me to divest myself of
control over the property.’ That same four-letter word
applies here, too. I’ve spent 75 years--less a few
years as a crawling baby--working hard, diligently,
totally honestly, in The Golden Rule Way, to acquire
what I have, and if my total wealth is incinerated with
me when I’m dead, that’s all right with me, compared to
giving anyone any control at all over what I have
earned.
On May 6, 1988, Mr. Joseph, from Seidman & Seidman, wrote a
letter to decedent. Mr. Joseph, in response to decedent’s
request, informed decedent that the consequences of a tax-free
gift of $10,000 per year would be to reduce decedent’s taxable
income and would “serve to reduce your estate and save the very
high estate taxes on each $10,000 that you give away. The estate
tax rates start at 37% for assets over $600,000.” Mr. Joseph
recommended that decedent make these gifts.
On May 25, 1988, Mr. Joseph wrote another letter to
decedent. Mr. Joseph further explained the estate and gift tax,
and that the tax rate of 37 percent rapidly accelerated to 55
percent. Mr. Joseph also informed decedent that in addition to
estate and gift taxes:
we now have a new tax a “generation skipping transfer
tax.” The tax basically is imposed to discourage the
gifting of assets to a second generation below the
transferor. Thus, it is an attempt to prevent a
grandparent from giving his assets to his grandchild
while leaving his children to enjoy the benefits of
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