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Thats not happening . We tried for a decade to get him to give substantial money to us kids . We tried to get him to do trusts . He refuses . He wants to control his money in his name . Anything under $13 mil is not taxable .He can write a check write now for $12.92 million to us kids tax free and use his whole exemption . He has us on all cd’s payable on death .
That estate tax exemption level expires in 2025 & reverts back to 2017 levels, meaning there is a good chance that if he lives 2 more years, the IRS could take 50% of every dollar over $6M or so.
I am seeing a ton of high net worth farms & businesses file estate tax returns right now so that the married couple can take the $26M estate tax exclusion now that expires in 2025.
PS- the IRA he owns & any annuities will also have federal & state income taxes due at death in addition to estate taxes on those amounts. IRA is all income taxable to heirs & NQ annuity have the gains taxable to heirs.
While full planning with irrevocable trusts & estate tax planning would be ideal, at least a basic trust to name as owner of things like CDs would be better than TOD listing at banks. TOD sometimes dont split it up to all bene or address what happens if primary predeceases contingent
Lastly, lastly, if any of his primary bene are doing great financially & dont need some of the money, it can be disclaimed or partially disclaimed to flow to contingent bene. Important to have beneficiary designation listing per stirpes so it can flow down the ancestry.
IE: my mom died in 2019 & had myself & my sister as 50/50 primary bene, per stirpes. I have done very well financially & am still in a very high tax bracket with my own pension & 401k, etc. So, I chose to receive my share of the tax free or low tax items, but i disclaimed My share of the taxable IRA. A disclaimer treated me as predeceasing my mom & thus it flowed to contingent per stirpes (my 4 kids). My 4 kids were 16-24, in much lower tax brackets & they now get an inherited IRA RMD check every Christmas from Grandma & will receive an escalating RMD check for 50-60 more years (old inherited stretch ira laws because my mom died in 2019 before new inherited ira law requiring it to be emptied within 10 years