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Billionaires amass more through inheritance than wealth creation, says UBS

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Re: Billionaires amass more through inheritance than wealth creation, says UBS

#101

Post by SketchySeaBeast »

TheOtherHobbes wrote: post #76
SketchySeaBeast wrote: post #46

Earlier quoted context omitted.

Yes, by the numbers million vs billion is massive, yes, but for quality of life and for worrying about monetary things? You no longer need to be concerned about food or any type of shelter. It's a matter of the size of yacht you can buy.

Or more realistically, the matter of the politicians and media narratives you can buy. For $50 million a year you can run a good few think tanks and make a good few campaign donations.

But that won't be apparent in how you pass yourself off.

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#102

Post by imhoguy »

yboris wrote: post #32
hilux wrote: post #9

Earlier quoted context omitted.

For more on this, which I really don't recommend, google "South Dakota Dynasty Trust."

> "Dynasty trusts can be created in South Dakota for families who do not live in the state. South Dakota allows trusts to continue in perpetuity, avoiding federal transfer taxes for generations. The state does not impose any form of taxation (income, dividend interest, capital gains) on these trust assets."

Can it be created by non-resident e.g. EU citizen?

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#103

Post by akprasad »

gretch wrote: post #86
Qem wrote: post #53

Earlier quoted context omitted.

We are devolving to the status quo from the nineteen century and before. A couple owners of inherited wealth and huge dispossessed masses.

This is true if you view the world from a zero-sum perspective. If the rich are winning, then the poor must be losing. But I would argue the world is not zero-sum. Modern life for middle class or poor class people is a lot better than the vast majority of history (the 2 notable exceptions are post WWII USA and post Cold War USA, when America was punched through as an undisputed global superpower). We are a looooonnng…

There are two separate concerns here:

- increases in material standards of living

- decreases in class mobility and increased concentration of social power

It is perfectly coherent to appreciate one and condemn the other. The parent comment seems to focus on the latter.

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#104

Post by tromp »

carabiner wrote: post #60
bombcar wrote: post #45

Earlier quoted context omitted.

In the US a billion is 1,000 million, not one million million.

Is it different in other countries?

Note that 'billion' and 'trillion' themselves have multiple meanings [1] [2], even though most people use only the short scale.

[1] https://en.wikipedia.org/wiki/Billion

[2] https://en.wikipedia.org/wiki/Trillion

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#105

Post by TheOtherHobbes »

1-6 wrote: post #51

When you have the assurance that you'll get wealth handed down to you, it opens up the possibility to explore things you're good at and take on more risk to amass greater wealth. So really, it's a push and pull situation. Billionaires do indeed know how to get rich but they're from stable backgrounds which permits them to do so. Meanwhile, most of us are stuck at 9-to-5 jobs and worried about making good on our inter…

You can also explore things you're terrible at. Just being able to afford to do them and promote yourself gives you a huge advantage over other people in those fields.

There are a lot of these people in the arts. Some are quite well known.

This kind of inherited wealth is hugely distorting emotionally and psychologically. In fact any significant fame is, because you lose touch with ordinary concerns. You're more likely to surround yourself with yes people - not just because they fluff you, but because they feel like a known and (somewhat) trustworthy quantity.

When there are huge numbers involved you can only really spend time with people who have similar resources.

This complete disconnect is incredibly corrosive.

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#106

Post by codedokode »

yboris wrote: post #32
hilux wrote: post #9

Earlier quoted context omitted.

For more on this, which I really don't recommend, google "South Dakota Dynasty Trust."

> "Dynasty trusts can be created in South Dakota for families who do not live in the state. South Dakota allows trusts to continue in perpetuity, avoiding federal transfer taxes for generations. The state does not impose any form of taxation (income, dividend interest, capital gains) on these trust assets."

Aren't there federal taxes?

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#107

Post by lawn »

pmorici wrote: post #87

This doesn’t appear to breakout by country. This isn’t surprising for more socialist countries like in the EU where it is harder to start and build businesses (wealth) in general. I’d be surprised if it was the same in the US where studies have shown that the majority of wealth is not inherited.

This is a common sentiment, but surprisingly it's quite easy to start a business in a country with a more developed social net because the failure consequences are much less severe.

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#108

Post by SoftTalker »

lotsofpulp wrote: post #90
yboris wrote: post #37

Earlier quoted context omitted.

0 taxation on assets or income and it's available to people living outside of the state. So rich people can avoid paying taxes.

It’s for avoiding federal taxes. The federal government can fix the situation anytime it wants, and it won’t matter where in the US people live.

Specifically for avoiding tranfer/inheritance taxes.

Any money actually paid out of the trust to a beneficiary is subject to that individuals federal income taxes.

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#109

Post by AaronM »

justinsaccount wrote: post #68
GreedClarifies wrote: post #30

Yet on the billionaire leaderboard the top-10 are: Musk, Arnault, Bezos, Ellison, Buffet, Gates, Zuckerberg, Balmer, Page, Bin. Not one of them through inheritance. Sure, you have the waltons a little lower on the list. As a person who started in the bottom decile of wealth I want to hate inheritance at least as much as the next person. But at first glance it sure doesn't look good for these "researchers".

Musk: Rich father, emerald mine money? Arnault: "In 1971, he graduated from the École Polytechnique, France's leading engineering school, and began work for his father's company. Three years later, after he convinced his father to shift the focus of the company to real estate" Gates: "His father was a prominent lawyer" "At age 13, he enrolled in the private Lakeside prep school, where he wrote his first software prog…

Yeah, they all came from families that gave them a significant advantage over their peers. They could all afford to fail at entrepreneurship, and not have their life turned upside down by it.

Re: Billionaires amass more through inheritance than wealth creation, says UBS

#110

Post by ZeroGravitas »

carabiner wrote: post #60
bombcar wrote: post #45

Earlier quoted context omitted.

In the US a billion is 1,000 million, not one million million.

Is it different in other countries?

Yeah. It's called the long and short scale:

https://en.wikipedia.org/wiki/Long_and_short_scales

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