The point is reduce land entitlement a little bit. Yes, there's going to be some light incentive to cut loose and that's OK.
I know for a fact (through living here) that Denmark and probably the rest of Scandinavia has property tax and inheritance tax -- holding on to family property is almost as expensive as buying new property.
Which part of Europe are you referring to? I once had Greek colleague who complained about having to maintain three generations worth of houses, so that might be one place where things are as you describe?
If he wasn't I probably did an extremely poor job of financial education while I was alive.
It's gonna be an obligation no matter what
Personally, I think the answer here is a continued and ongoing land tax. Occupying land should come with an expectation you contribute to the common good, because you don't "own" land. It's a shared good, just like air and water, and you should pay for use.
Primary residences should indeed not be subject to an inheritance tax - if they are continued to be used as a primary residence. Providing an ongoing home for a family unit[1] is a societal good, we shouldn't punish it.
[1] Definition of family is a hairy problem for another, longer post.
Or, you know, keep posting oneliners.
What you'll end up with is people "relocating" for a year to avoid paying inheritance tax.