The Kenndy’s and their ilk are protected by trusts that will keep the family wealthy for centuries. Trusts cost lots to set up so you have to have much more than a comfortable amount. A comfortable inheritance is what they are after. Why should you inherit a million or even a few hundred thousand?
Mostly, I think inheritance tax is a plan to take land and small business away from families.
Now that my family owns six rentals it would be better to transfer them to an LLC or a trust. But to do that requires paying the fees all over again. If we were talking millions that isn’t a problem and the transaction would be large enough we could probably do lots of fancy things to walk away with cash. But these are ordinary amounts like your house.
It probably sounds great to those who have nothing that others with potentially inherited wealth should lose it.
There is an old Russian joke. A man is explaining socialism to a farmer.
Man: “You have two cows. You keep one and give one to the state.”
Farmer: “I get that.”
Man: “You have two chickens. You keep one and give the second one to the state.”
Farmer: “I get that.”
Man: “You have two carrots. You keep one and give the second one to the state.”
Farmer: “No way!”
Man: “Why not?”
Farmer” “I actually have two carrots.”
“Mostly, I think inheritance tax is a plan to take land and small business away from families.”
It is simple. The really rich know the only way us normal folks have to compete is for us to hand down our accumulated wealth for a few generations and work our way up to what they have. They think they need to stop that from happening.