[okie01]

"Long before estate taxes were invented, families would go from riches to rags, usually due to dissolute sons and grandsons wasting their inheritances."

Which is exactly why the hyper-rich form tax-free foundations, so that their wealth will outlive their dissolute sons and grandsons.

[demosthenes the elder]

ah, yes, a secular bid for immortality...

[expatpat]

You have a point there. However, the other part of the trick is for the foundation to hire the said sons, etc. for minimal duties, so there is money leakage there, though not as much as the old way.

[Cookie123]

Reason why the inheritance tax is SO unfair is that it is not "graduated" fairly. The heirs of some guy who has an estate of 100 million dollars still have many millions left over even after paying the tax. Then there are all the trusts, foundations and so on they can put their money in to further shield it from the reaches of the IRS. Of course THEY do not care if they have to pay the inheritance tax. Not so with the poor schmucks who would like to carry on Dad's ranch, dry cleaning business, or small construction firm. His total net worth might not even be a million dollars, but nonetheless, they are liable for the inheritance tax. After they are through paying it, the possibility of carrying on with the business and increasing that family's wealth is zilch.