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Not sure how we are defining wealth here, but for 99% of Americans this is a non-issue given the estate tax exemption of $12m/individual $24m/couples. Perpetual
by cascom 5y ago
Not sure how we are defining wealth here, but for 99% of Americans this is a non-issue given the estate tax exemption of $12m/individual $24m/couples. Perpetual trusts are a boon to the super rich, but doesn’t change the math for everyone else.
- pydry 5y agoThese trusts will compete with the middle classes for assets. This kind of thing is a large part of why there is a housing crisis. The existence of this wealth is an existential threat to the middle class.
- cascom 5y agoI don’t have the numbers at my fingertips but I believe it’s institutional money (pensions, endowments, insurance companies, sovereign wealth funds, etc) that are the real drive asset prices, not the marginal high net worth buyer
- synthos 5y agomy point isn't so much taxation on inheritance (although that is unfair too - step up etc...) my point is that these trusts are specifically structure to prevent decendents from exiting their wealth. through poor risk taking, ineptitude, getting sued. nothing will affect the trust
- cascom 5y agoFair point, but Procreation + divorce / kids in multiple marriages will typically exponentially whittle it down (not crazy to think that a trust could go from 3 to 40+ beneficiaries over 60 years) + trust fees / poor management