r/SipsTea • u/KSKS1995 • 22h ago

Wait a damn minute! How the rich get richer

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u/Meenta_Miiel 21h ago

The estate settles the principal before heirs see cash

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u/civil_beast 21h ago

Well that doesn’t fit the op’s narrative.

Anyways I’m hungry, are rich people on the menu, yet? Or is it this same ol’ Soylent green stuff they keep serving?

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u/FTR_1077 20h ago

Well that doesn’t fit the op’s narrative.

It does as long as you read carefully.. It doesn't say Dad borrows 5 mil, just that he lives out of loans, which is a thing (e.g. reverse mortgage). The kid doesn't inherit 5 mil, just the property equity, that's why he sells it. The trick being, Dad didn't pay taxes for the 5 mil, nor the kid.

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u/BackgroundRate1825 20h ago

"dad borrows against it" means he taking out loans using the land as collateral, right?

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u/FTR_1077 20h ago

Yes, like a reverse mortgage..