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Monday, August 27, 2012

Romney Tax Returns Show Strategy for Moving Money to Kids

Bloomberg:  Romney Tax Returns Show Strategy for Moving Money to Kids:

Republican presidential candidate Mitt Romney and his wife, Ann, have used sophisticated estate- planning techniques for more than a decade to minimize taxes and amass at least $100 million for their family outside of their estate.

The couple created trusts as early as 1995, when Romney was building wealth as chief executive officer of Bain Capital LLC. They packed one for their children with investments that stood to appreciate and set up another for charity that provides a tax deduction and income. The candidate’s retirement account, valued at as much as $87.4 million, may benefit his heirs for decades. “It’s beneficial for your kids and grandkids to push the money downstream,” said David Scott Sloan, chairman of the national private wealth services estate-planning practice at the law firm Holland & Knight LLP in Boston. “The Romneys appear to be doing things that are similar to what other high-net-worth families do.”

Wealthy couples use strategies allowed under the federal tax system such as moving assets to trusts so that the money may be subject to little or no gift and estate taxes, Sloan said. The Romney family trust is worth $100 million, according to the campaign. That money isn’t included in the couple’s personal fortune, which the campaign estimates at as much as $250 million.

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Comments

All these Romney money stories strike me the same ... so what?? This nation is cruising towards a Greek-style fiscal collapse. Serious and rapid business growth is our only hope. We need a president who knows how to make money, how to control costs and regulations, how to enthusiastically promote business. If these authors don't like the tax code, that's a separate fight.

Posted by: MochaLite | Aug 27, 2012 12:31:51 PM

“The Romneys appear to be doing things that are similar to what other high-net-worth families do.” -- Unlike idiots who pay more than they have to. So, if what Romney does is consistent with the law and with appropriate tax planning, why is this even a story?

Posted by: Woody | Aug 27, 2012 5:07:58 PM