Let me fill in the blanks . I raised some of those points and he said that he has a couple of cards with nowhere near the limit on them . He's not running wild and racking up debt . He said that he could easily go buy a new vehicle and finance it with no problem any time he wanted . He just said that " I have no problem owing people when I die . "
Interesting conversation with a friend of mine .
- Thread starter nomas
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When I take out credit, I am agreeing to perform my end of the deal. Dunno if this is legal or not, just my opinion.
I don't understand your point .
Did you tell him that, now knowing this, please don't ask to borrow anything from me. I don't want to have to go collect it from your estate, after you pass. 
Taking out a loan (credit) is a contract between the lender and the borrower. If I take out a loan, the lender performed their part of the contract. It is up to me to perform my part.
I cannot speak to the ultimate legality of this.
Plenty of people default on loans. We all pay for that. Just like tax deadbeats; the costs are still incurred.
Personally, I sleep very well knowing I have zero debt.
Again, some people seem to say, "It's my right" while others say, "It's my responsibility."
JHZR2
Staff member
When he’s dead what difference does it make to him?
Not saying it’s the right thing to do…
The estate will be forced to pay for it. He doesn’t seem to care. Seems stupid because the creditors will get theirs with max interest.
Unless he can transfer all of his estate to his heirs long before he passes. Then I guess he did get the creditors to hold the bag.
The " legality " of it is a complicated issue . I kind of doubt he told the CC companies that he has no intention of paying them off , There's no fraud until it actually occurs . And if the Estate pays the debt , who loses ? He never promised the kids an inheritance . It was a fun discussion and we drank a few Beers and had a good time with it .
Agreed, it makes no difference to him; he's dead. But those debts are ultimately paid by the greater society, including his children, you and me.
What does that attitude teach his children?
Legally you can gift $15K per year per person out of your estate; beyond that you incur a gift tax. I can also tell you that unless you have a huge estate, $15M or more, the feds will likely never know. But they might... Schwab advised me on this very topic.
JHZR2
Staff member
Agree on all counts.
4WD
$50 site donor 2023
They tax you to death +1
In Canada we have no inheritance or gift taxes. I shouldn't say it too loud because the tax people might be listening and discover a new revenue source.
Some provinces have huge probate fees ($15,000 per $1,000,000 here in BC). So there is a lot of money spent here figuring out how to avoid those probate fees. In most provinces probate fees are nominal, $200 or so.
To their credit the feds have created structures that enable avoiding those greedy probate fees.
Some provinces have huge probate fees ($15,000 per $1,000,000 here in BC). So there is a lot of money spent here figuring out how to avoid those probate fees. In most provinces probate fees are nominal, $200 or so.
To their credit the feds have created structures that enable avoiding those greedy probate fees.
I personally hate debt-why give my money to the CCs, loan companies, or banks when I can keep it for myself? That’s one way I could guarantee living to be 100-blow everything & run up huge unsecured debts, spend my golden years in a homeless shelter or shivering under a bridge…
You obviously missed the details of this conversation .
Maybe not, if your friend outlives his money and credit.
He says he has no mortgage , so I assume the house will be sold and his debts paid from the proceeds . He really doesn't have a whole lot of debt , He just doesn't care if he dies with a CC balance .
Also , I'm assuming he has a 401k because we have talked about it before . No idea of the value . If the kids are the beneficiaries then that money is safe .
Giving away liquid assets has tax ramifications. Don't ask me how I know.
