Smart and rich people get around inheritance taxes by systematically giving wealth to their families over time while they are still living.
Comment on Grandma is on her own
lightnsfw@reddthat.com 1 day agobut if theres enough debt the other assets go towards that rather than the inheritors.
doingthestuff@lemy.lol 13 hours ago
deranger@sh.itjust.works 23 hours ago
That’s literally what I just said. Debts are paid out of the estate.
Dasus@lemmy.world 19 hours ago
I’m not sure the whole “debts aren’t inherited” part applies everywhere.
Certainly does in my country. Although like in the rare instance there was something you absolutely wanted to inherit, but there was also a mountain of debt, you couldn’t decide to inherit without also taking on the debt. Even if that inherited thing was literally worthless and would not yield anything when sold.
Although such an object would probably be able to gifted, but like technically, that’s how it’d go.
But here’s the bit that actually made me write my comment:
youtube.com/shorts/_pkNndF6O_M
Idk how it works where that guy lives, but it’s clip from an American standup, talking about inherited debt. Might just be made up, obviously, but according to this article more than half the states still have “filial responsibility” laws.
deranger@sh.itjust.works 19 hours ago
If you read that article, you will see the exact two examples that I used for when you would be responsible for the debt. The third that I didn’t list was mishandling the estate as the executor.
Dasus@lemmy.world 19 hours ago
I don’t see how that explains the story in the clip?
I don’t think the article covers all the state-level filial responsibility laws. There’s a ton of state level legislation after all.
Or it might be that the debt the guy is talking about in the clip isn’t legally enforceable, but it sounds like debt to the state, which is why he seemed to inherit it in the first place, it wasn’t just like a regular credit line.
lightnsfw@reddthat.com 22 hours ago
My point was that if you have too much debt your inheritors aren’t going to get anything when you die so just saying that debt doesn’t get passed on like it’s nothing is kind of disingenuous. I guess if you don’t care about leaving anything to your family you don’t need to worry about it but personally I want mine to get as much as possible.
deranger@sh.itjust.works 21 hours ago
It’s not disingenuous in the slightest. Debt does not get passed on, full stop. You are not responsible for the debts of your parents except for a few niche scenarios. Debts and assets are separate things.
lightnsfw@reddthat.com 21 hours ago
You can inherit nothing because all the assets went to cover the debt though. That’s my point.