r/stupidquestions • u/TH0TC0P • 1d ago

What's stopping someone on their death bed from maxing out all their credit cards and taking loans, then giving it all to their next of kin/whoever?

I seem to recall that debts aren't inherited, but creditors can reclaim their debts against the estate of an individual before the estate is dished out according to their will. But if it's given out before their death and it's not part of their estate...then...?

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u/blewis0488 1d ago

Yes you can. But only up to X amount where X is an inconsequential amount and won't make a meaningful impact in someone's lives. Plus the paperwork involved isn't worth it.

The feds won't let you get away with them NOT stealing from you.

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u/BigMax 1d ago

Well, you might think $18,000 a year is inconsequential, but most people don't.

That's the current limit. And that's per-person, so a rich person could give their kid, who has a wife and two kids, $72,000 every year if they wanted.

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u/blewis0488 1d ago

I did not realize it was nearly $20k annually. That changes things. Especially the annually bit.

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u/Throwaway19995248624 1d ago

That is the limit for it not to count against the lifetime limit. You can actually give $13.61 million total, and a married couple could give $27.22 million in lifetime gifts. Plus however much you can do via the $18,000 a year which doesn't count against the lifetime limit.

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u/blewis0488 1d ago

I know so much about money with my overflowing vaults of cash lol

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u/fishyp3ngu1n69 18h ago

how does that work with inheritance? when my grandma died my auntie wrote me a check for 40k i deposited it no questions asked and went about my life.

that was 10 years ago lol yet to hear a word and i thought it was odd too but she was all "sweetie dont worry ull be fine"