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The basic idea that is that the public interest is poorly served by allowing people who are long dead to exercise control over property based on ideas they held
by NovemberWhiskey 5y ago
The basic idea that is that the public interest is poorly served by allowing people who are long dead to exercise control over property based on ideas they held while alive.
For example, imagine I'm a successful tobacco plantation owner in 17th century Virginia, and I define my identity and my legacy as such. I create a perpetual trust and transfer ownership of my land to it; and I place restrictions on that land that it can only be used for growing tobacco.
What if tobacco is no longer a profitable crop in the future, because smoking tobacco is made illegal? What if tobacco is wiped out by a pest, or can no longer be grown due to changes in climate?
- dantheman 5y agoSo, it sounds more like you have a problem with the trusts and not estate taxes. If we got rid of estate taxes then we could just pass the money on directly.
- NovemberWhiskey 5y agoI don't really know where you get that idea. I think the two issues are separable, and probably orthogonal. In fact, I'm fairly sure the rule against perpetuities predates the existence of any substantive probate or estate taxes.