Quote:
Originally Posted by AltaGuy
This is superficial in the extreme. If an average inheritance is like $5000, I would certainly expect it is spent quickly.
If you're like a friend of mine who inherited about $50M in real estate, none of the principal has been spent and he's worth about double that now.
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LOL. No, your example is the extreme.
Yes, inheritance size is pyramid-shaped (most are very modest). But the articles that focus on these issues aren't talking about the $5,000 inheritances (they are completely irrelevant), there is always a minimum size that is considered for relevance (usually either $100k, $1M, or $10M, depending on the purpose of the study).
This discussion has, from the beginning, been about large inheritance. And specifically billionaires. Any inheritance tax, or any policy that is being considered, would always be on some set minimum, and the most common number for that is $10M.