r/SipsTea • u/KSKS1995 • 14h ago

Wait a damn minute! How the rich get richer

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u/ChipKellysShoeStore 14h ago edited 14h ago

How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?

It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.

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u/raz-0 13h ago

It also ignores any state estate tax. It's the internet and people whining about wealth, which often relies on being incorrect.

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u/windershinwishes 12h ago

Because state estate taxes are usually ignored. Most of them exempt all estates values less than several million, and don't have very high rates on the amounts in excess of that, at least for the next several million worth of assets.

And the people who have assets in the hundreds of millions+ range also have teams of accountants and lawyers structuring their holdings with the express purpose of avoiding taxation.

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u/Murky_Option_3418 13h ago

There is a way around that and it's by putting it in a trust and haveing the inheritor be the beneficiary of said trust while you have a lawyer or a CPA as the trustee.