Most of us pay taxes on income we earn. Those who amass great wealth on things like real estate holdings don't pay income tax on the related appreciation on the property until it is sold. This appreciation should be taxed and not be passed onto the next generation tax free. When one dies their loved ones inherit property and/or stocks at the value at the time of the deceased's death. Easy to look up the value of stock values on the date of death. Valuing property, like a farm, is not hard to do either. The values of all a deceased person's assets is taxable when over a certain amount per the tax code. It is proper to tax real estate, farms, over that limit. With proper tax planning property can be passed on in increments but that's a whole other discussion in it's self.