capitalism
capitalism
Out of context: Reply #793
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- nb0
Assuming I play the game correctly, I want to aim to do the following:
a) give my kids as much of my money as I possibly can BEFORE I die
while also
b) die with as much debt as I can possibly accumulate (from banks, lenders who aren’t family)
Am I wrong here? I might start calibrating towards this. I’m 40.
- forgive my ignorance (no kids, not inheriting much), but doesn't debt get passed on as well? like can banks pursue action against your kidscolin_s
- Lol if those fuckers think they’re coming to me looking to cover my moms debt?! Good luck to themnb
- afaik dept can't pass to anyone else when you die, however, your estate can/may be wiped out to pay off your dept.bulletfactory
- the doug stanhope bit - 6 years after his mom died (statute of limitations) about maxing out her credit after she died is quite beautifulkingsteven
- That’s correct. Your estate pays your debts first, then anything left over is inheritance to someonenb
- Whoever is executer of the will has the legal responsibility to satisfy debts first before distributing and assets. If there is no will this is done by the Gov.Morning_star
- So, the plan is to give that money to your kids before you die while racking up debt that you’ll never have to pay back.nb
- You could technically hide money overseas in a trust that is controlled by both you and the kids. However, the tax man will be particularly observant if they...Morning_star
- ...know a parent has recentky dies. It can be very difficult for kids to realise the funds without Gov. knowing.Morning_star
- Also, giving money to your kids whilst you're alive is difficult due to income tax or capital gains.Morning_star
- I think the idea is the exact opposite: Give as much to kids as possible AFTER you die. Die with as little debt as possiblemonospaced
- @mono that is one strategy, for sure. I'm talking about the inverse approach. Utilize debt to maximize personal net wealthnb
- @Morning_Star: I hear you, and I think you're right. But you can give $15k to each child per year without triggering a tax event.nb
- So, say I live 30 more years & have two kids. If I gift $15k/year to each, I can give a total of $900,000 without telling the IRS.nb
- It's not great but better than hoarding for 30 years and losing 15% or more to taxes. Meanwhile, I borrow for my own needs with no intention of paying off debtnb
- I'm aware that this becomes hard to do as you get old. E.g.: a 70y/o can't get a mortgage without having a young person co-sign.nb
- @nb, the $15k yearly gift is a good way, my parents have done something similar with my kids. They’ve stipulated that the kids invest the money and...Morning_star
- ..don’t touch it until they’re 21.Morning_star
- Borrow at fixed rate low interest, eg for your house. meanwhile put savings into BTC. by time you die, kids can use 1% of the BTC they inherit to payoff home.shapesalad
- Your kids get the debt too. You don’t want to give them that if you can help it. I don’t see how this is a real strategy. Or else you’re totally sarcasticmonospaced
- If you have less than zero when you die, the debt isn’t passed to your children.nb
- so im mostly ignorant here, but isnt a trust fund for kids seprate and untouchable? also im a photog so "paying" kids as "promo models" is common among us.epigraph
- Debt is inherited of course. It isn’t forgiven upon death.monospaced
- I suppose if you are talking philosophically one could say debt is passed on. not sure thats the case in the legal sense innthe US.epigraph
- @monospaced: not in the USA. If you owe more than you have when you die, the debt is wiped clean.nb
- *googling how to take your own death.pango
- *fakepango
- @kingsteven lol I did this, in part, before I left the UK. Put a shitload on credit cards then bailed overseas. Good times.face_melter
- Sorry, debt is not erased, it is passed on. If nobody can pay it, they take it from your estate. Children can inherit that and mortgage debt too.monospaced
- This is very true in the USA, of course, and is why so many people are forced to take out life insurance policies, and why deaths are so costly.monospaced
- Have you googled this? I think you’re wrongnb
- They take it from your estate but if your estate doesn’t have enough to cover the debts, they do not get passed on. It’s similar to declaring bankruptcynb
- I don't need to google it. But if I did, it would say that debt is not erased and is paid for by the estate, which is the children.monospaced
- Hmmm, I don't think it's that simple. All I have are anecdotes about how the estate debt is a burden on the executors.monospaced
- Your kids are not part of your estate FFS! They’re people!!!nb