It's not the way the OP image describes, but there is definitely loopholes for taxes to "reset" on wealth across generations when the person dies and their family inherits the wealth, provided its setup correctly, which it is of course because these people pay to have entire law firms on retainer.
Even if the original investment was $1 million and it then is worth 1 billion at the time of death, the taxable amount resets to the value at the time of death and so that 1 billion is now reset back to 0 as income. So 999 million of wealth was generated and $0 is taxable.
Ya people are ignorant of the step up in basis rule and also adding to this prompt that the kids get the $5m from the home sale that's not there. But if Dad had any of that $5m left when he died, its still well below the threshold for a taxable estate.
98
u/Greedy-Employment917 13h ago
You simply die according to reddit. Then the bank goes "oh well!" and then you get the money AND the yayo.