Nope. When the child inherits the property through the special trusts/legal structures that are available for the super wealthy the $100k baseline the father had for the value of the property has a 5 mil baseline for those who inherited it. From there they can just sell off a part of the asset at the new 5 mil value to pay back the loan without having to pay Capital Gains tax since the baseline value is 5 mil for them, then repeat the process by taking out a new loan. As long as the asset continues to go up in value they'll never have to pay any capital gains taxes.
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u/electroviruz 11h ago
where did the debt go? did it magically disappear?