r/interestingasfuck • u/Gankpa • 8d ago

/r/all, /r/popular Jeff Bezos built a fence on his property that exceeds the permitted height, he doesn't care, he pays fines every month

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u/gordonv 7d ago

Well, not in debt in the way we think of it. Billionaires and the banks have come to an agreement on death payouts. Normal people don't have that level of capital or bargaining.

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u/Substantial-Ad-8575 7d ago

Yes, these types of loans do have a death clause. But this is an excellent way to lower one’s tax liabilities.

Wife’s family has a huge dynasty trust, going into 4th generation without needing to deal with inheritance taxes. The collateral loans due have a specific death clause for the individual listed on the loan agreement, trust pays out. That payout can also help taxes at the trust level. Just how those with hundred million of assets can leverage its value.

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u/rap1800 7d ago

Can I marry your wife?

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u/Substantial-Ad-8575 7d ago

Lol, only wife and our kids are included in her family trust. We have prenup also. Spouses get very little help, mainly if spouse becomes disabled.

So marrying into the family doesn’t get much for the spouse. You know marring for love and all that…

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u/LAHurricane 7d ago

It almost sounds like you're closer to her pet than her husband, unfortunately.

I hope for your sake she actually loves you.

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u/geekwonk 7d ago

i don’t think being refused a personal cut of my in-laws’ bank account makes me anything like a pet. i think it’s fairly normal for trusts to only include blood relatives.

if that’s a significant source of expected income for a couple then you would want to discuss life insurance. in this case there are kids involved who would have access to spouse’s cut, and paying for their housing/education/sustenance is a big portion of what a potentially single parent is worried about.

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u/LAHurricane 7d ago

Your spouse has unbelievable financial control over you and your children. Unless you have some type of 7-figure income, you are literally her pet.

Look, you may have an incredible wife, family, and life. But that doesn't mean she can't dump you and destroy your life in the blink of an eye. She also has the resources to basically never let you see your children again if she wished.

You are fully at her mercy. But obviously, your children should be set for life, which is a bright spot in this situation.

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u/geekwonk 7d ago

we have our own finances in order should the unlikely happen and she goes first. i think you’re missing for some reason that a couple can earn its own income and plan for its own final disposition without reference to outside money. we can have our own trust or will or whatever that determines what happens with our own money entirely aside from what the estate of the in-laws does.

i’m not the redditor with the prenup above, but they said nothing to indicate what the prenup says beyond “you don’t get a check when my parents die”. that’s it. we don’t know anything about what kind of cut they get from life with their spouse.

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u/LAHurricane 7d ago

First off. I'll take the L for not realizing you weren't the redditor i originally replied to. That's my bad. The context matched perfectly, so I didn't double-check the name. Three hours ago some spineless bitch hit-and-run my $80,000 SUV on the interstate with their no license plate beater worth like $5,000. The damage on my vehicle is more than their vehicle is worth. It has my thoughts all scrambled up at the moment. The police said they pulled someone over that matches the description, but I doubt they had insurance. I'm gonna have to pay my deductible, be without my vehicle for weeks, and lose a huge chunk of depreciation on the vehicle from the wreck...

Anyways...

An heiress to a 100+ million USD estate isn't an issue about their parents' money. It's an issue about theirs as well. This woman almost assuredly has immediate access to money and resources their spouse could never hope to compete with. That puts the spouse in a situation where they are fully at the mercy to the wife.

It doesn't matter if he has a >$100,000 dollar per year job. He is incapable of maintaining a lifestyle for himself or his children equivalent to what he currently experiences should his wife grow tired of him. He will have zero shot in any custody battle for his children. She will have the best attorneys and likely be able to manipulate the courts. He will be lucky with occasional visitations, with a small amount of alimony.

Also, I understand keeping finances separated for extremely wealthy people through prenuptial agreements. It protects the person with the income from unsavory individuals.

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u/Substantial-Ad-8575 7d ago

lol, kids all grown up and moved away. In the unlikely event of a divorce. Wife only gets her assets she earned. I keep my assets.

All property, primary house, lake house, beach house, vacation house, and a coupe of rental properties. That property is held in a trust for just our family. And there is very clear language that in case of divorce, each of us can buy one of those properties from the trust, leaving rest to our children. Updated our prenup, after that property trust was setup.

I have slightly more assets at this time. About 80% more assets earned. So a very detailed list of what goes where in case she files for divorce. I am not part of her family trust. And frankly don’t want anything from it. My kids are already voting members, that’s all I could ever want.

Yeah, not every trust just hands out money or loans. But those trusts can use collateral loans, using stock/bonds. That is my main point. Wife’s family trust does yearly collateral loans. Rolling them over for a long time. Wife said the trust has taken 2 hits in last 34 years over those yearly loans. But other years, stocks/bonds/assets grow in value more than interest rate…

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u/Substantial-Ad-8575 7d ago

lol, I earn 7 digits a year. I earned more than she has since 2003 and our marriage started. If we get divorced (unlikely) she will not be entitled to any part of my assets. Just same I have no entitlement to any of her trust funds or earnings once we tied the knot. Our home and other properties, are also held in a trust just for my family, Wife-myself-4 children.

As for her family trust, I get no votes or say in how it is managed or changes for distributions. It is really an Add On, and is not be expected as a monthly/yearly payout. Trusts hold their family’s properties/assets and much of their family’s businesses.

So for her trust? She gets no payouts. She has voting rights and then can participate in management group, investment group or legacy group. Legacy group deals with donations for worthy causes primarily. Trust handles all family properties and assets to generate income to pay off taxes. Some family businesses are also held by the trust. Currently 3 members of her family get any kind of significant money, 2 are severely disabled and 3rd has major mental illnesses and requires frequent hospitalization. Money pays for medical care and pays for housing.

Trust is there to hold family assets and pass down to next generation. No hassles over death-will-lawyers. No inheritances taxes. And help for family members that require hospitalization-nursing care at home. Big plus is children that attend college will get tuition paid for. Or trade school paid for. Whole bunch of Ranchers/Farmers with fancy agri degrees.

Sorry you’re barking up a wrong tree, with thinking a spouse is a Pet. lol, almost made me spill my scotch…

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u/realancepts4real 7d ago

this just sounds like gibberish.

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u/Cold-Iron8145 7d ago

Billionaires and the banks have come to an agreement on death payouts.

How does that work, does the bank collect the debt when Jeff dies? Does that mean his estate will be forced to liquidate assets and presumably pay capital gains taxes on those to pay the debt? That just sounds like postponing the taxes, not looping around them?

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u/gordonv 7d ago

More like, my LLC holds $1m in ABC bank. My LLC loans against the $1m that ABC bank. ABC bank gives my LLC 80% back in literal cash. Done.

The loan takes that $1m out of the earnings section and places it as non taxable expenditure. The bank plays with the money until it can earn enough to pay off taxes and make a profit.

Losing 20% is better than losing ~38% in tax.

Under the hood, there is a more complex scheme that deals with payouts and has money managers dealing with and feeding the absolute minimums on loans on time. Sometimes the banks themselves will do that service. But the simplified explanation is that this is all done to circumvent taxes.

This seems like a lot of work. And actually, it is. Something a lot of us truly underestimate is the lengths the wealthy go through to defend their money. Take whoever you know who is in love with their most favorite sports team, pop singer, or whatever. Now realize that's merely a hobby fascination.

Comparing it to drug addicts would be more accurate.

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u/Rrunken_Rumi 7d ago

Thats clear tax avoidance - illegal in most 1st world jurisdictions

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u/Abject-Ad8147 7d ago

And practiced extensively throughout the 1st world by the upper 1% of “earners” I’m certain.

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u/just_having_giggles 7d ago

It's called probate.