2 ms·
> And how do you pay back that loan? Get another loan. If you're rich your assets are growing and so refinancing an existing loan with a larger one gives you
by benlivengood 5y ago
> And how do you pay back that loan?
Get another loan. If you're rich your assets are growing and so refinancing an existing loan with a larger one gives you more cash to spend and to perform perfunctory maintenance on the loan until it's time for an even bigger loan.
Dying in debt to your trust fund just means the trust fund can write off a large loss before estate taxes.
- refurb 5y agoThis is not how it works. You don’t write off secured debt loses when you die all the while passing on billions of assets. I swear people just make things up to try and prove their point.
- CTmystery 5y agoI wouldn't mock the parent so quickly. See page 24 here for the game that's being played: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3242314 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3242314 Particularly the section "Stepped-up Basis on Death (Die)"