Does that actually happen? Everything is possible, I suppose, but I have a hard time believing such a scenario to be real.
Yes it is real Luis. Family farms many times must be sold to pay the "estate tax".
Out of curiosity, at what level of wealth is that expected to happen?
Many family farms have hundreds of acres. To support one cow, you would need several acres of land. A herd of 200 cattle could need a 500 acre farm which could be appraised at over 10,000 per acre. That would be 5 million dollars for instance.
The income from a farm like this could be as low as 100,000 a year and that would have to support several families, perhaps two brothers and their parents. That would be 33,000 per household. Even if you double this example, their "estate tax" would be 2.75 million. Yes these people on paper are millionaires, but their life style and income would not reflect this.
Their attitude is, they work the land not own it. They are the stewards of the land till they pass the family farm down to the next generation. They hardly live a luxurious lifestyle.
Ownership of farms beyond a certain size is certainly not an inherent right of, well, anyone. Wealth is not a personal right. It is a privilege.
A family who has worked hard every day for generations who pay their property tax, income tax, social security, state tax, local tax, sales tax and barely get by would hardly agree with you that their farm is a privilege. Their great great grandfather cleared the land before the government even existed. They fought Indians, dealt with dishonest bankers, endured harsh weather and faced poverty to keep those farms.
It's not a privilege to keep their land, the government is privileged to have collected all the taxes they paid for hundreds of years.