[First, sorry for my unexperienced english] There are 3 bits used for setuid, setgid, sticky; and only 2 of those bits have some effect for directories: GUID and Sticky. (not UID) My proposal is to dedicate the unused bit on directories (that one files use for setuid), currently set with: $ chmod u+s MyFolder ...to use for a complementary task to current GUID [$ chmod g+s MyFolder] This GUID bit has the effect to new elements inherit parent's group. The currently unused bit could have the effect to new elements inherit paren'ts permissions. What the permissions inheritance will be useful for? Shared directories (through network, locally, and portable in an USB stick). Ext2/3/4 and other Linux native filesystems should be useful to easily share contents, and it's not so easy for common people: == EXAMPLE == User A (uid=1000,gid=1000,umask=0002) in computer 1 formats an USB stick with Ext4. This same person creates directories and files in it and, to "sure" a friend reads and shares without caring about permissions, does: $ cd /media/MyStick $ chown -R root:users . $ chmod -R a+rwX . $ find . -type d -exec chmod ug+s {} \; User B (uid=1003,gid=1004,umask=0027) in computer 2 (with same operating system) takes friend's USB stick, reads perfectly all directories and files, and creates a new file in there. It's nice that with current bits the new file will be for group "users", but THE PROBLEM is that it's an incomplete inheritance to have big possibilities that friends (in this example) can read/write this file. BETTER SOLUTION THAN CURRENT BEHAVIOR: An inheritance that affects permissions. Concrete proposal again: That with this current syntax: $ chmod u+s MyFolder A bit is already set, but operating system becomes to apply with the effect of new elements inherit parent's permissions (r,w,s).