Because they can... FWIW, I have been working on my estate for some time and I found about an item called an irrevocable life insurance trust. I believe the estate tax on estates over $5 million are now subject to a 45% government money grab, and this is one mechanism to soften the blow. I couldn't tell you all the particulars, but you might want to investigate it a little further...

dyodd, ymmv, bid en suc ks.

Regarding the military - Most everything is programmed 2 years prior to fiscal execution (1 Oct, not Jan) via colors of money (different pots for different things - Operations, Sustainment, Revival/Renewal/Replacement, etc.) different cycles via the “POM” process QDR and late additions/attacks to current and projected requirements that are peanuts compared to the 2 year planning ahead. The deficit spending is nothing new and par for the course, but what was spent today was already planned for 2 years ago aside from warfare and black programmed initiatives. Like you said in a way, pay your taxes or not the $ cash is spent already. Just info, as I have lost many years down the road within the walls of working mil/civil gov budget cycles. Funny we even use the word budget. It’s such a a swamp debacle... Such a better office at Cruise Alt around the world. Best seat in the house.

I’m always impressed on how expertly knowledgeable airline pilots are on all topics.

40% estate tax, $11.7 million exemption (23.4 for a married couple)
-ILIT is a good start
-Gifting during your lifetime helps reduce the estate size
-FL370esq also pointed out GRAT (Grantor Retained Annuity Trust) as a good option once above the limits.
-At a minimum a Revocable Trust helps simplify the estate for your heirs

Yep, any topic we can Google before posting makes us feel like experts. Some of us have expertise in areas outside of flying. In my other profession, people are impressed by my aviation knowledge. .

In 2020, federal estate tax generally applies to assets over $11.58 million. Estate tax rate ranges from 18% to 40%. Some states also have estate taxes. Assets spouses inherit generally aren't subject to estate tax.

Here is a bit more info on the subject. Be aware that most of the life insurance policies have very high front loaded costs built in. If you are not going to exceed the 11.58 million a life insurance trust makes little sense. Because of the high costs there is a big cottage industry of money managers pushing these products. They make a huge profit much like annuities. The same guys tend to sell both. A guy living a half a mile from me bought 5 prime waterfront lots and moved 1000 feet of road to build a 15 million dollar home. He sold these products if that tells you anything!

Before you draft an irrevocable life insurance trust, examine the potential drawbacks:

• The trust is irrevocable, meaning it is permanent. Once you decide to put your life insurance into a trust, there's no turning back the clock. You cannot take the policy out of the trust, although you can lapse or surrender it.
• You can't change the beneficiary of the policy. This could be particularly damaging to you if your family relationships change during the life of the policy.
• The policy’s death benefit is taxable for three years after transfer. If you transfer an existing life insurance policy to a trust but die within the next three years, the death benefit is still subject to estate taxes. To avoid this, you can have the trust purchase the policy from the start, so there is no transfer.
• You can't borrow from your policy. If you want to take out a loan against your policy, forget it. You can't borrow against the cash value in the policy because you're no longer the policy's owner. The trustee can take out a loan, but if the loan benefits the insured in some way, the beneficiary could sue the trustee.

I just re-did my will/estate trust. I can’t remember the year, but the bump up to 11.58 million sunsets in a few years (unless it’s renewed).

Well yea, cause you didn't create that....the government made it possible. And, if you are fortunate enough to be over that limit, you obviously stepped on the "little people" and it is only just and right that you mandatorily gift that fortune to the government.

Today is a day of thanks...be greatful that the government is there to help.

Personally, I am thankful for my family.

It's not pilots, it's Americans in general.

The inverse rule of Americana: The less you know about a topic, the stronger your opinion about it must be.

Every year the GAO publishes a list of federal programs that are redundant, overlapping, duplicating, or wasteful/in need of streamlining. Essentially a non-partisan identification of the "low hanging fruit" of programs or pet projects that need eliminating or reducing.

This is an easy target for Congress; rarely acted upon.

A5S