From the time that this country IPO'd around 1776, there was essentially no estate or wealth transfer tax. Great fortunes – at the time, mostly based in real estate assets – were illiquid. That is, the land itself was worth a lot. And the cash flow from lots of cotton being picked with super duper cheap labor – wouldn’t have footed a tax bill system like we have today. We see remnants of this “asset based illiquidity problem” today when NFL pro football teams MUST be sold for tax reasons when the patriarch/ owner dies and his estate hasn’t planned properly.
How do you plan?
Well, if you have to, then that means Daddy is rich and you have a wonderful problem.