Elon Musk fights to keep custody battle in Texas, where he'd only have to pay $2,760 a month in child support
Elon Musk fights to keep custody battle in Texas, where he'd only have to pay $2,760 a month in child support
Elon Musk acknowledges in new courts records he has his son X and accuses Grimes of moving to California with the other kids to avoid Texas courts.
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The key word here is "capping". People are assuming for some reason that an estate tax means the repo man comes and takes all your earthly possessions after you die or something, but no one's suggesting that. They're suggesting putting a cap on how much you can pass down in an inheritance, as a way to prevent the hoarding of wealth by a single person/family.
What happens to the wealth beyond the cap?
It's taxed.
How is the tax realized in assets? Are they sold?
If necessary for the inheritor to meet their tax obligations, sure. I'm sure there's a dozen different estate tax systems in place that tax professionals would know more about, but yes, liquidating assets would be one way for an interior to meet their tax obligations.
What would another way be? Say I inherited my parents company they built, entirely privately owned.
You would be charged a tax proportional to the value of that business. How you pay it is up to you. This is how estate tax is currently done in the US at the Federal level. Again, I'm not a tax professional, so if you want to know more I'd suggest looking into it yourself.
That would essentially mean family businesses, at least past a certain size, would be impossible. Or more realistically, they would just obfuscate the ownership structure.
Which is why estate taxes have caps such that people who own small family businesses are rarely affected.
Not all family businesses are small
I'm aware.