Former rap star Vanilla Ice disses death taxes

investmentnews.com:

Robert Van Winkle, known more widely as Vanilla Ice, has taken to social media with a warning on US estate taxes and some suggestions on preserving generational wealth.

In a recent video on his YouTube channel, the ex-rapper panned the estate tax, also known as the inheritance or death tax, as a major obstacle for those aiming to leave their wealth to their descendants.

The “Ice Ice Baby” singer emphasized the importance of having an effective estate for parents to ensure their hard-earned assets go to their children, rather than to the government or a lawyer.

He shared a cautionary tale about his friend Mark, whose family faced severe financial consequences due to estate taxes.

As Van Winkle tells it, his friend’s parents owned a vast 1,500-acre property in Palm Beach, Florida. They left their estate to Mark and his siblings, who ended up having to fork over more than 80 percent of their profit from selling the property to the taxman.

“They’d never heard of it before, never saw it coming,” Van Winkle shared.

He advised against relying solely on lawyers for estate planning, disparaging them as “vultures” who might exploit clients’ lack of knowledge.

“If you ask a lawyer: ‘How do I save all [my] money and give it to my kids without the IRS taking it, without … lawyers and probate court taking over?’ A lawyer’s … going to tell you a hundred different things that are going to confuse you,” he warned.

Instead of leaving money behind in cash, the former rapper, who has found a second act in home renovation and real estate investment, offered two alternative estate planning solutions.

According to Van Winkle, life insurance can be an efficient tool to transfer wealth, as its death benefit is not subject to income tax, ensuring