I think you’re underestimating how clever finance people can get, or the degree to which they can turn anything into a financial instrument. Holding a loan at a low but still attractive interest rate, secured by many times the value in diverse stocks, with no and/or token monthly payment that settles only with the debtor’s estate or on default? I think they could work with that and package it up without much difficulty.
But yeah, your fix is the obvious one, don’t let people update the basis of assets tax-free at inheritance, or at least cap the tax dodge in some way.
I think you’re underestimating how clever finance people can get, or the degree to which they can turn anything into a financial instrument. Holding a loan at a low but still attractive interest rate, secured by many times the value in diverse stocks, with no and/or token monthly payment that settles only with the debtor’s estate or on default? I think they could work with that and package it up without much difficulty.
But yeah, your fix is the obvious one, don’t let people update the basis of assets tax-free at inheritance, or at least cap the tax dodge in some way.