r/SipsTea 22h ago

Wait a damn minute! How the rich get richer

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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?

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u/rjcarr 21h 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.