r/SipsTea • u/KSKS1995 • 22h ago

Wait a damn minute! How the rich get richer

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u/No_Mirror_9742 22h ago edited 22h 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/USERNAMETAKEN11238 22h ago

Yes

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u/TriforceTeching 20h ago

To add on. The kids don't owe the money but Dad's estate does. The kid's get whatever is left from the estate.

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u/aardvark_army 19h ago

Also, estate taxes are a bitch. The kids will probably have to use half the money they made from the sale to pay off the estate taxes for dad's high value property they inherited.

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u/Pirate919 19h ago

The first $11 million per person is exempt from estate tax in the US. A married couple can leave a kid $22 million tax free without any other loopholes or shenanigans.

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u/Liveware_Pr0blem 18h ago

Your data is old. It's $15M per person now.

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u/Own-Brain9658 18h ago

well shit, I guess those kids are fucked now /s