Man dies with $200 in bank and $7M of gold hidden in home

http://www.foxnews.com/us/2012/09/17/nevada-man-dies-with-200-in-bank-7m-in-gold-hidden-inside-home/

Interesting story. No surprise that the tax man wants his share now. TC

 

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Why would the IRS want any of the money? I thought it would just to the next nearest relative? Sigh.

 

If the man never paid taxes, of course the fair share is owed to the IRS if he owed back taxes.

There's inheritance tax that kicks in if the value is more than 5 million last time I checked, at least for 2011 it was 5 million since I had to know such information as my father passed away last year. Could be wrong though for the 2012 year on inheritance tax before googling it.

 

This guy is lucky. Without will, which the deceased man did not have, some states don't go past immediate family for inheritance and the money ends up in the state's hands. Usually its something like wife > children > brothers & sisters > state.

With that said, there are good reasons to leave gold out of a will. One of them is the tax issue.

 

Two things in America are certain: death and taxes

 

Where on earth did you get that misinformation? The standard intestacy pattern starts with spouses but extends to nieces, nephews and cousins, even remote ones. All relatives of the closest surviving degree share equally.

Another mis-statement of the law. If the value of an estate hits the minimum, federal estate taxes are due regardless of whether there is a will or not. Often with a will an estate can be structured in a manner that results in less tax than would apply without a will. And don't forget, some states have inheritance taxes, which also kick in regardless of whether there is a will or not. Of course, frequently an estate can be structured with a living trust in a manner that save not only taxes, but significant probate expense.

Bottom line, anyone with assets or minor children absolutely needs to have a qualified attorney set up an estate plan that fits that person's circumstances. Dying intestate generally results in the biggest "hit" to the financial interest of the heirs, and frequently gives the biggest benefits to the least-liked relatives.

 

It's scheduled to drop to $1 million January 1st 2013 unless congress votes to halt it. That includes all property, assets, cash, etc. Inherit a farm worth $3 million in 2012? You owe nothing. Inherit the same farm worth $3 million in 2013? You'll have to find the cash to pay taxes on $2 million or sell the farm. It's been said "this is a good year to die if you're wealthy."

This will be a big surprise for a lot of people.

 

He was worried about everything except losing $7 million worth of gold in a house fire or robbery. Wow.

 

Son, you completely miss the point as I wasn't giving legal advice. It would be folly to try. hint:they can't assess taxes on something that nobody knows about.

I checked for NC and here is the relevant statement. It seems to disprove what you said about "remote ones" as it stops at 1st cousins. I was wrong however in that it appears the party in the OP would have received the gold. His children would not however.

If there are no children, parents, grandparents, brothers, sisters, aunts, uncles, and no descendants of any such persons, the estate goes to the State to be used to aid certain students who are residents of North Carolina and enrolled in public institutions of higher education in North Carolina.​

 

All I can say, other than I'm jealous as ****, is another California LIB is going to learn a new thing or two about The Man!

God Bless America!!!! or whats left of it anyway!

 

If one inherits gold and it has not been reported in an estate, one might just have a very difficult time when it comes time to cash it in.

Yes, the idea of holding gold (and silver etc) privately, is great until your heir(s) (or you as an heir) are faced with explaining why it was not reported. "I didn't know.." doesn't cut it very well.

AT LEAST this is true in my own experience. I'm still stinging over this issue, and I cringe every time this subject comes up here on CoinTalk. I would like someone to explain this 'plan' to me, thoroughly, all the way to and through disposition. I'll be watching for an answer. Folks never think about the person left 'holding the bag'..


Lucy (Oh, one more thing.. valuation without documentation is an issue to be concerned with too..) Just saying..

 

What if you pass your gold and silver assets to a daughter or other family member while you're alive? Then years later when you die, do they still have to pay an inheritance tax? Or will they have to have some sort of documentation that it was passed while you were alive?

 

So am I!! Ain't no shame in being honest!

 

Here's a interview with the neighbor and Realtor who found the gold coins. http://www.cnn.com/video/?hpt=hp_t3#/video/us/2012/09/18/dnt-nv-7-million-in-gold-coins-found.krnv

When the realtor said that he didn't like government much than all the gold coins made sense How does a guy worth nearly $10 million not have a will? That was one rich conspiracy theorist.

 

Give me a gold coin and I will get you some cash. Any pawn shop in the USA will gladly give you close to spot for gold. I've seen endless cash only transactions of gold at every coin show that I've gone to.

Gold can be subdivided down, easily, to any size.

 

My wife knows to cash in PM's a little at a time and over a number of dealers so as to not draw the attention of the IRS.

No. If you pass it while you are alive it is a gift and subject to gift tax laws. It only becomes an inheritance if it passes after death.

 

I'm not condoning tax evasion by any means, but I think divide and conquer would work well. If you split up $7M enough ways, it'll eventually come down to numbers that can fly under the radar.

Of course, in this example it may not have worked very well as he didn't have enough heirs to split his fortune amongst.

In my case, assuming I was able to come across $7M, I could split it between my wife, my three kids, my brother and his wife and their two kids, my brother in law, his wife and their three kids. If that isn't enough, I could extend it out to my cousins and their children. If I did that, each person would be receiving about $100k in coins. Definitely a small enough number that they could cash in one or two coins a year and not raise any eyebrows.

 

Fatima, is this legal? Seriously, one coin, two coins, ten, even twenty..but the amount being discussed is huge. Loose lips and all that..

 

"it is only against the law if you get caught" is the Tax Planning rule Fatima is utilizing as the basis for his advice.

 

Folks left holding the bag? That's one bag I would not mind being left to hold.

I would be more then happy to pay any taxes on $7M worth of gold that anyone wants to leave me.