Hilton, an American billionaire, donated nothing to his family after his death. Only a small part was for genuine charity, and the rest was used to escape U.S. inheritance taxes.
The inheritance tax in the United States is relatively high and can be said to be the highest in the world. It implements a 21-level super progressive tax rate and the tax amount is huge.
That's why I thought of this method, donating to my own foundation. Generally, the money in the foundation is managed by relatives, so relatives can also use the money in it, so as to avoid paying taxes.
The U.S. Internal Revenue Service stipulates that each person can transfer up to $14,000 to others per year. If the amount exceeds the limit, he will pay gift tax on the excess amount.
You can only give 5.49 million to others in your lifetime. If you exceed it, you will be taxed 45%, which is almost equal to the tax on half of your property. If Hilton does not use donations and directly inherits inheritance, at least nearly half of his property will have to be given to others.
The country must be reluctant to part with this. After all, so much money is hard earned.
For U.S. inheritance tax, after the person dies, all property: including real estate, foundations, stocks, equity funds, retirement account money, money in banks, companies, all collections, etc. will be legally certified, and then the total amount will be verified.
If the amount exceeds the national regulations, you must pay taxes. Now I understand why many people in the United States do not like to buy a house, because after buying a house, they cannot leave it to their children if they die.
The United States also has a generation-skipping gift tax, which means that if a grandparent’s inheritance is not given to children but left to the children of grandchildren, it must be recalculated. In addition to the inheritance tax, there is also a generation-skipping gift tax. The generation-skipping tax is more expensive.
Pay 50%. If you follow this payment method, the United States will become rich, because as a child, you may only get a quarter of the property.
So this approach by Regal Hilton is a very wise approach.