Awesome stuff here! Kudos to Gary North in writing this article... I must share:-)
Gary North is an economist and publisher who writes on topics including economics, history, and Christian theology. He is the author of Mises on Money. Visit http://www.garynorth.com
Who Will Inherit Your Money When You Die?
by Gary North
"Tell me what country I will die in. I will never go there."
Men do not like to think about their inheritance. That's because of the word "die." This is why they delay writing a will. A will is like a road map to the border of the final country. "I will never go there."
But they will, with or without the map. Everyone knows this, but almost everyone who has not been diagnosed with a fatal disease assumes that he has at least five more years to live. For 4.9 years, this assumption is incorrect.
Some men hire a lawyer to draw up a will for them (cheap or free). The lawyer names himself as the executor (retirement income).
Other men hire a lawyer to draw up a living trust or revocable trust ($2,000 for computerized boilerplate).
One way or another, someone will inherit. The capital will be used by someone else for his purposes.
Most men think that their children will extend their posthumous legacy. Why should they believe this? Because they never ask themselves these questions.
1. Do my children think the way I do?
2. Why should they think the way I do?
3. Do I think the way my father did?
4. Do their spouses think the way I do?
5. What is the evidence that they do?
6. Are my children good with money?
7. What is the evidence that they are?
8. Are their spouses good with money?
9. What is the evidence that they are?
10. Will the money be worth anything?
11. What is the evidence that it will be?
The government understands inheritance far better than most parents do. The government has determined that it will impose an inheritance tax.
Rich men hire lawyers to devise ways around the inheritance tax. Less rich men think they will beat the inheritance tax altogether. That is for rich men to worry about, they think. They are wrong. So are the rich men.
THE REAL INHERITANCE TAX
The inheritance tax is to governments what the red cape is to a matador. It focuses the victim's attention away from the sword.
The inheritance tax begins to be collected early. It is collected by a special team of tax collectors. Like all tax collectors, their salaries are paid for by the taxpayers.
The government has purchased specially designed tax-collection vehicles, comparable to Brinks or Loomis armored cars. We see them on the road nine months a year. They are painted yellow. When their red lights are flashing, don't pass them. I have written about them here.
Government officials, unlike parents, understand that the secret of inheriting enormous wealth is to persuade the heirs to spend the money your way, not the deceased's way. The money is merely capital. The crucial factor is the will.
This is why, in every nation, the government requires attendance at schools. It then taxes people to fund these schools. The handful of schools that it does not fund it regulates. The schools that it does not regulate are so few in number that the government ignores them.
This strategy was spelled out in detail by the scholar who is sometimes called the father of American central planning: Lester Frank Ward. His 1883 book, Dynamic Sociology, presented the program. First, destroy all private education. Second, force parents to send their children to tax-funded schools. Third, filter out all objectionable ideas in the textbooks and classrooms.
Ward hated inequality. He hated inequality in intelligence. He wanted to equalize intelligence. He had a plan to do this.
The system of private education, all things considered, is not only a very bad one, but, properly viewed, it is absolutely worse than none, since it tends to increase inequality in the existing intelligence, which is a worse evil than a general state of intelligence would be. (Vol. 2, p. 588)
Society, through the State and through the public schools, must place teachers in charge, and these teachers must be independent of three groups: "parents, guardians, and pupils." (II, p. 590)