I think if you look into this, a lot of times when you hear about rich people giving their money to charity the "charity" is just a tax shelter. It's a scam to protect the estate from the government. I used to work for a large family investment firm and these people majorly obsess over death taxes and descendants pissing away the family fortune. It's really all they care about.
The kids get a trust fund or benefit payment or something, they just don't get full control of the principal (so they can't spend it all).
It really is a perfect example of Current Year politics and media--the mega rich wall off their money and turn it into self-perpetuating power sources while also patting themselves on the back for how "selfless" they are.
The term in those circles is "Shirtless to shirtless in three generations." One guy makes all the money, his kids maintain it but fail to achieve more, then the grandkids squander it all.
I think if you look into this, a lot of times when you hear about rich people giving their money to charity the "charity" is just a tax shelter. It's a scam to protect the estate from the government. I used to work for a large family investment firm and these people majorly obsess over death taxes and descendants pissing away the family fortune. It's really all they care about.
The kids get a trust fund or benefit payment or something, they just don't get full control of the principal (so they can't spend it all).
It really is a perfect example of Current Year politics and media--the mega rich wall off their money and turn it into self-perpetuating power sources while also patting themselves on the back for how "selfless" they are.
In your opinion, how many wealthy parents sort of hate their own kids like this guy clearly does?
It's based on how they spend the family money.
Increase the principal -> good son
Piss it away on stupid shit -> horrible son
The term in those circles is "Shirtless to shirtless in three generations." One guy makes all the money, his kids maintain it but fail to achieve more, then the grandkids squander it all.
You're not wrong, it would be a good way to get around any sort of inheritance tax.
That does make a lot of sense.