General Discussion

When Bezos dies the stock will be revalued to current Fair Market Value.

So Amazon is at $250 today, to keep it simple, let's say he got all that stock @ $100 and passes today.

That $150 increase is transferred tax free.

Then the heirs then get to revalue the stock @ $250. (date of passing) If you are really really rich (which they are) you can even pick a point up to six months after the death.

And for the next step, let's say a couple of years from now an heir is running up to big of a tax bill on his/her other income, and the stock has dropped to $150. The heir can sell shares AND claim a $100 per share loss on the stock.

So in summary, 100,000 shares bought at $10,000,000

Value today, $25,000,000

$15,000,000 tax free

Heir gets starting point of $250 per share

Stock drops to $150 next year

Heir sells 1/4 if the tax free inheritance, $3,750,000 proceeds AND gets a $2,500,000 deduction! Remaining value of the stock is $11,250,000.

Great scam isn't it.