Sure it does.
Plenty of heirs "lose the farm."
It's been said that the first generation builds the business, the second generation manages it, and the third generation loses it.
Maintaining and growing wealth are different than receiving and spending.
The transfer still worked. And people who get success more on their own sometimes lose the farm too (more often, I'd bet - I don't think there are any low risk strategies of getting richer than your parents).
Maintaining and growing wealth are different than receiving and spending.
It's much easier than getting it in the first place, though.
Ah, but how diluted does it get with each increasing cohort of heirs?
Not always easy. There are disasters too - hyperinflation, nationalization, monetary/land reform, privatization.. any of them can cause you to lose large amount of wealth.
Direct ways of transferring wealth between generations never fail. And there's a lot of those going on too.
Transferring values is hard. Transferring cash is easy.