Inheritance tax, the most vicious one of them all!
Taxation is theft, but Inheritance Tax is pure evil
I don't know how the situation is in other countries and continents, but I do know that the situation in Belgium with the inheritance tax is pure evil. As a broker, I take care of many people's life savings, and I have seen it so many times, where people are robbed from a big part of their inheritance after a relative dies. It all depends on how much and how closely related the relative is. But if you inherite money from a brother or a sister, or even worse an aunt or an uncle, chances are quite high you will lose between 35 and 65 % of your money to taxation. That is pure theft in my opinion. Especially because that money has already been taxed multiple times before, with income tax, taxation on revenue of the investment, etc... And once again the country taxes it. In my opinion, this should be halted completely, and it would boost the economy immensely.
Ways to get out of it
Belgians are known for bending the rules and finding ways to get out of taxation. It's just that for average Joe it isn't that easy to avoid the Inheritance Tax. It's mostly the big money, the elite, that get away with it. By setting up very complicated constructions with trusts and companies in which the family money is "hidden" and Inheritance Tax is avoided on a legal way.
Of course setting up such kind of constructions cost money, fees for attorneys, deposit fees to set up a company, etcetera. So for a "normal" inheritance of say 100000,00 EUR that is just not profitable to do. But for the bigger money it is really profitable. So, once again, the big guys escape the taxation because of legislation. The lucky few, the 1 %, as they are sometimes called are protected by the law, and the normal people lose the hard earned money of their elders and relatives.
I find it really hard to comprehend that there is so little reaction to this by the people. Probably because they are in a very vulnerable position when this taxation occurs. It has to be paid withing 4 months after the death of the relative, they just are too swept away by the event, that they just pay without a fight.
I would like to know how the situation is in other countries? Let me know in the comment section.
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