No Transference Of Wealth, Inheritance, etc
Oveview:
People cannot keep any assets ( both financial & physical ) attained during their lifetime within their bloodline. Assets are best utilized for enhancing your quality of life ( + your spouse & children, if you opt for that lifestyle ) and/or making an impact in the world however you choose. Assets are non-transferable, even to your spouse & children. If they choose to give up their dependent status, they must make their way in the world armed only with the education & life perspective you helped them to develop. Upon death, all remaining assets are liquidated and invested into socioeconomic development.
Does it work? What does life look like? Potential benefits & disadvantages?
Points to consider:
* familial bonds
* overall human progress ( sociology, technology, etc. )
* economy ( business, politics, caste structure, etc. )
* crime
Side Note:
This question was prompted by the post, What do insanely wealthy people buy, that ordinary people know nothing about?, on /r/ThreadKillers
Rules:
In this society, people are required to carry out life as either a "Provider" or a "Dependent".
Providers:
* can only acquire wealth through direct personal efforts
* cannot transfer their assets to anyone
* can assume dependents in the forms of:
* spouse(s)
* children ( birthed with a spouse, or adopted )
* are required only to cover basic life needs of their dependents
* this means: food, water, shelter, etc.
* once those needs are met, they can choose to provide as much or as little as they discern for their dependents; in terms of education, recreation, goods, services, etc.
* upon death: monetary & physical assets will be liquidated and invested into socioeconomic arenas of their choosing ( technology, healthcare, etc. )
* see Assumptions[4] for edge cases.
Dependents:
* are allowed & encouraged to develop their own assets while under a provider
* are allowed to indefinitely maintain a state of dependence, given acceptance by their provider
* all physical assets bestowed upon dependents will be liquidated upon their transference to the role of provider
* can ( but are not required to ) assume a prior provider as a dependent ( to care for seniors, those with disabilities, etc. )
Assumptions:
1. Physical money has been rendered obsolete. 207
All monetary assets are in the form of digital credits, which are directly linked to individuals and are only transferable in exchange for goods & services. A programmatic system is in place to minimize fraudulent transfer of assets in the form of overpaying for goods & services.
2. Individuals who have opted not to assume dependents are bound by the same rules as providers.
3. Any dependents entering the same career or political arena as their provider will be subject to additional scrutiny by the board of said arena. They must be proven to be competent in all skills required, and will not be given preference over other candidates.
4. In the event that a provider dies while their dependents are not capable of sustaining themselves; the provider's credits will be transferred to the dependents in a weekly recurring amount, which is dictated by State regulated terms. Credits will also be directly applied to maintenance of essential assets as described below.
Assumption 4, continued:
Scenario examples:
* dependent is a child
* dependent has been acting as a full-time caretaker for a child, and as result, has not developed their personal assets
State terms are regulated based on the current economy and include:
* a time-based allotment of credits that cover basic life needs as previously mentioned
* the allotment has an expiration date which is based on the particular case
* continued usage of any essential physical assets of the provider ( house, car, etc. )
* continued education ( IE: dependents will continue whatever educational path they are currently on )
The intention of this trust system is for the dependent to develop themselves into a provider in what is deemed to be an acceptable timeframe, given their circumstances. All non-essential assets ( vacation homes, multiple vehicles, etc. ) will be held as reserves for emergency cases by the State until the term has expired, and will be liquidated thereafter.
EDIT: I made a few updates to address some potential loopholes that were mentioned in the initial answers. 852