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That money replaced the other owner's wealth in that house. What changed? What changed for you? What changed for us? What did change is the previous owner was
by creer 3y ago
That money replaced the other owner's wealth in that house. What changed? What changed for you? What changed for us?
What did change is the previous owner was taxed a boatload (yacht load?) on their capital gains on the house. And the new owner was taxed another yachtload on the capital gains they had to realize (selling shares) in order to buy the house. A lot of that capital gains tax was most likely postponed until someone's death - but still correct. Depending on the country, it's likely more than half the purchase price of the house went into taxes because of that transaction. Which is one of the reasons such purchases don't happen all that often (does that make you happier?)
But you can find solace in Victor Haghani's remark that most inherited wealth disappears in shockingly few years. Because most people are terrible at judging and managing investments (when they care at all). When with even with no-brainer investments it would keep modestly growing from generation to generation. See The missing billionaires - A guide to better financial decisions, Victor Haghani and James White, 2023.