May 23, 2024
Recently, the mere hint of an inheritance tax proposal sparked a mini-political crisis? Thanks to a quick government rebuttal, it’s off the table—at least for now. But that’s not where the story ends.
As always, Deepak and Shray go head-to-head, weighing the merits and pitfalls of this hot-button issue.
We’re not just looking at the problem from 30,000 feet; we’re getting into the weeds, examining real-life scenarios and potential solutions that could impact you and your future.
Government Finances: Can an inheritance tax significantly boost government coffers? Or is it just another drop in the ocean of fiscal needs?
Societal Impact: Will taxing inheritances create a more industrious society, or will it just penalise those who’ve worked hard to create wealth for their children?
Implementation: What if we set the bar high, say at 100 crores or even 1000 crores? Would this make the tax more palatable and targeted?
Practical Hurdles: Imagine inheriting a house or a business. Sounds dreamy until you hit the wall of unrealised gains and logistical nightmares. We’re peeling back the layers on these challenges.
Future Planning: If you’re expecting a windfall 5 or 10 years down the road, how should you plan your finances today? Spoiler alert: It’s not as straightforward as you might think.
So, grab your headphones and tune in. Whether you’re a financial novice or a seasoned investor, this episode promises to challenge your thinking and maybe even make you laugh along the way.
Timestamps:
00:00 Introduction and Disclaimer
01:25 Should we have an inheritance tax?
07:36 What if inheritance tax is imposed solely on the wealthy?
15:42 Creating a Trust to offset tax
25:04 Are there significant practical difficulties associated with inheritance tax?
35:08 Doesn't implementing an inheritance or wealth tax help reduce asset prices or control inflation?
42:58 How should one prepare for potential inheritance taxes in the future?