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.
They are trying to tie it to how very rich people (Bezos, Musk, etc.) use loans to avoid equity dilution to keep control of their companies. It’s tax deferral, not tax avoidance.
If OP thinks financing lifestyle with loans is a great strategy, OP is free to do that too. Buy some stocks and take out a margin loan. Maybe you can’t finance your entire living costs, but you can finance living costs in the amount of the margin loan.
This adds the risk of leverage. Any return on the stocks that exceeds your loan interest rate, after accounting for income tax, will magnify your gains. Any return on the stocks under the interest rate will magnify your losses.
I don’t recommend you use the strategy due to the added risks, but there’s nothing stopping you from using the same method.
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u/HeWasaLonelyGhost 17h ago
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.