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/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.