Quote:
Originally Posted by DoubleF
Then you get screwed on the taxes due to it not being covered by PPRE.
A loan agreement makes the most sense, but also to mark down that it must be paid out before any other loans/distributions.
I was going to make a joke about setting aside a slightly larger sum than the loan and drafting and agreement stating that your parents are taking out a life insurance policy on themselves with Wormius as the sole beneficiary to repay funds loaned to them in 2025... but it might be more expensive than expected and probably the real life outcomes will be a bit morbid/sketchy and not funny or practical at all.
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Well, the practicality of life insurance is that (A) it is tax-free and (B) confidential from other heirs. The policy payout is outside the rest of the estate, so no one has to know it exists, other than you and your parents. So, while there are other potential issues, there are some sensible reasons to look at that.