re: I don't understand inheritance tax

The problem is that even with proper planning, there are limits to how much can be put into trusts, etc that can be passed on without being taxed. From talking to a tax lawyer recently, there aren't all these hidden loopholes out there that everyone imagines. If your business, property and assets exceed a certain value, it gets taxed. You do well to set up trusts for you and your spouse, but after that, the trust is taxed when you pass it out of the trust to the heirs. The inheritance tax is now at 51%, and it is taxing money and property already taxed in the earners lifetime. I believe it was the former owner of the Miami Dolphins who died and his children had to sell the team to pay the estate taxes. Of course none of the Marxist will feel sorry for them, but is going on all the time with family businesses, farms and regular people who saved and invested over their lifetime.