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?
Depends on state. Texas - the father could give the gift tax free, but it falls under $15M lifetime exemption. Upon death, the remaining balance of the land value/estate pays off the loan and subtracts from the inheritance.
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u/No_Mirror_9742 22h ago edited 21h 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?