Since when is the government the rightful owner of anything? Are we ultimately slaves, then?
If my spouse is dead or I am divorced, and I have a house, and I die, are my children homeless and destitute?
I am honestly flabbergasted at the concept that a government should own things by default. A government is not a kingdom, and it should govern, not own.
Actually, it's going to the people. The government is representing the people. However, the children inheritances will still far above average after rich inheritance taxes.