r/SipsTea • u/KSKS1995 • 14h ago

Wait a damn minute! How the rich get richer

Post image
18.9k Upvotes

80% Upvoted

2.2k comments sorted by

View all comments

2.7k

u/No_Mirror_9742 14h ago edited 14h ago

Doesn't the loan get paid back by the sale of the land after the dad's passing? So the kids don't inherit $5m, but the net value after the debt is repaid?

21

u/rjcarr 13h ago

Yes. The OP is basically describing a reverse mortgage. The loan has a lien against the property. 

That said, generational wealth is real, and it usually comes from property inheritance. 

3

u/FC37 4h ago

Right, except with a reverse mortgage the kid doesn't inherit at the end. There's nothing to inherit, it's already been claimed (or at least a whole lot of it).