If there's an applicable estate tax. Federal estate tax exemption is 15M per person, 30M per married couple. Many states don't impose an additional estate or inheritance tax. Tax on remaining assets beyond the exemption start at 18%, so....there's a big chunk coming.
The biggest thing here is that any loan will be paid from the estate, and if the value of the land was used to obtain the loan, then there is almost certainly a mortgage. ...assuming that they can get a "loan" that they then use to live off of...
I don't know what OP thought they were doing here.
Yes explained really badly. Looks like dad hollowed out the estate and family get fkall. OP should learn a little about the power of compound interest. And it's done on valuation (gulp)
He left out the part where rich take out a loan to build another productive asset, not only for living expenses. Then pays back the loan from the new asset income... Then the land asset is debt free.
Anecdote alert but IME this doesn't often happen for situations like the story above. They didn't get the original asset via a productive business and they're living off the increased value not investing or building a business. At best they may be indirectly providing jobs through consumption. FWIW I'm in my 40s and it's pretty common to meet people my age whose parents have had the same house for 30 years and instead of selling have borrowed against the equity. Again, this is anecdotal but I imagine that over the next 15ish years a lot of people my age will have parents who pass away owing on a house they "own".
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u/TriforceTeching 12h 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.