The absurd behaviors caused by Japan's inheritance and gift taxes

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Japan's inheritance and gift taxes are higher than ours, and the deductions are smaller.
Even between spouses, the same gift tax rates apply.
As a result, strange loopholes and odd behaviors have emerged.
In an attempt to provide for their children, elderly people take out single-premium life insurance policies—which barely yield a 1% annual interest rate—just to qualify for inheritance tax deductions.
They rejoice, thinking that the full amount will be passed down to their children in 20 to 30 years.
Elderly people continue to live in dilapidated houses that are 50 to 60 years old, spending 100,000 yen a month on maintenance for homes they don't even truly live in.
They rejoice, thinking they can receive the residential property deduction when they inherit it in 20 to 30 years.
Wealthy elderly people purchase 1-billion-yen tower mansions, which are valued at only 20-30% for inheritance tax purposes.
They live on a 250,000 yen pension while paying tens of thousands of yen in monthly management fees, and they drag their aging bodies out to shop just to use 50-yen supermarket coupons.
When their children inherit these assets 20 to 30 years later as 70-year-olds, they repeat the exact same cycle.
It is estimated that the cumulative assets accumulated for these purposes currently amount to 500 trillion yen.
Even just this much is absurd enough, but...

The life insurance companies that have accumulated these assets are currently facing astronomical book losses due to the recent surge in bond yields...
I wonder how far this absurdity will go..