Thread 61281282

Why are heirs unanimously retarded
If they just dumped into S&P family would be worth trillions

>>61281282 (OP)
wealth doesnt really last multiple generations unless you're in a monarchy

>>61281313
I blame this entirely on stupidity, if he had just set up a trust and didn't let them destroy the fortune his $1.4B would be $20T today

>>61281282 (OP)
Because the wealth is diluted by the amount new members of the family every generation

>>61281326
If you stick your dick in a hole you lose half your money

>>61281313
Chainlink unironically solves this

My retarded kids and grandkids will have allowance from smart contracts and thats it

>>61281326
It’s not so simple. Money held in trust for multiple generations gets heavily taxed. (((For whatever reason))), the gov’t does not want the uber rich to retain control over their wealth from beyond the grave.

>>61281560
In the USA? What kind of rates?

>>61281560
It doesn't get heavily taxed though? It pretty much gets taxed the same as a holding company.

>>61281282 (OP)
one heir loses it all to a risky venture. two of the heirs don't think longterm, and their share is practically gone just as they die. and then the fourth heir is the only one who thinks longterm, except he barely reaches the "starting" amount before he dies. and then the cycle repeats for his heirs.

>>61281928
>>61281934
There are two heavy taxes for large estates; the estate tax and the generation skipping transfer tax (GST tax). First every dollar above the estate tax exemption is taxed at ~40%, and then if any of the residue will be distributed to grandchildren (or more remote descendants) then every dollar of those distributions above the GST exemption is taxed at another ~40%. The rules for applying this in practice are complex, but that is basically how it works. Also these are just federal taxes, certain states have their own inheritance taxes on top of these.

Most people don’t have to worry about this because the estate tax exemption and GST exemption are $15M each for singles and $30M each for married couples. But if you are a billionaire, then those exemptions are basically irrelevant. There is a whole industry built around helping UHNWIs plan around these taxes and there are a lot of tools that can be used to mitigate the exposure. But you have no idea what you’re talking about if you think it is as simple “just put it in a trust.”

>>61281282 (OP)
Why are /biz/ posters unanimously retarded
If they just dumped into S&P they would be worth millions

>>61281282 (OP)
The S&P500 index fund didn't even exist until 1976, then it took decades for people to see that it performed well as a long-term investment vehicle.

>>61282223
>only 50 years of data
thats barely long term
it also randomly goes down 50% every other decade

>>61281560
its literally that simple dumbass the uber rich never lose

>>61281928
this schizo (muh joozzz) nuthugging the poorrr uber rich which avoid all taxes if the want to

>>61282100
oh no poor richfag have to share their luck

>>61282332
>>61282335
You are mad. And to be clear, the Rockefellers and (((Rothschilds))) of this world will always have plenty of lucre. I am merely explaining that preserving generational $$ is more complicated than just “putting it in a trust.”

Also, Christ is king.

>>61282100
>There are two heavy taxes for large estates; the estate tax and the generation skipping transfer tax (GST tax). First every dollar above the estate tax exemption is taxed at ~40%, and then if any of the residue will be distributed to grandchildren (or more remote descendants) then every dollar of those distributions above the GST exemption is taxed at another ~40%. The rules for applying this in practice are complex, but that is basically how it works. Also these are just federal taxes, certain states have their own inheritance taxes on top of these.
But a trust protects against that since technically the heirs are just receiving dividends/payouts.

>>61282375
No.

The taxation of trusts and estates is governed by Subchapter J of the Internal Revenue Code, whereas corporate taxation (i.e., dividends etc.) is governed by Subchapter C of the Code.

>>61281329
There's like 70 direct descendants that would still make all of them worth over $200b if it were just invested and left alone

>>61281282 (OP)
they probably are trillionaires, they just don't disclose that to the public. this family controls the agencies, the oil, pharma, etc.

>>61282419
>>61282367
>>61281560
From what I'm understanding, the government takes 40% when you die if it's on the scale of the Rockefellers, right?
That's obviously a ton but I just did the math out and if we assume they took twenty when John died, then let's say his son died 45 years later and the current family is what we have today, that's still 2 trillion dollars that doesn't exist. They lost 99% of their money, basically.
>>61282545
It's pretty hard to hide trillions of dollars anon

>>61282547
Sorry took 40 when John died, and also assuming that from that moment the family kept everything in S&P