Threads Wealth Management Hot Article: Dad is not dead yet "First divide the inheritance, pay 3% Interest every year" Should the children sign?

A very special "inheritance article" has appeared on Threads, which is quite informative from a tax-saving perspective. (Background: A post on PTT seeking help: "Family bought a virtual Mining Rig": Is investing 100k in Mining and receiving 500 a day a scam?) (Background supplement: Threads has exposed a "victim of virtual currency scams": shocked to see a 60 million loss, and someone is taking loans to survive on toast) Taiwanese people are crazy about Threads, and the posts there are all sorts of bizarre. Recently, this particular thread has been very dramatic: the original author's father announced in a family meeting that the children could "inherit" the inheritance early, but the condition is that they must pay him 3% Interest each year until he passes away. The eldest son signed without hesitation, thinking "the earlier you get it, the earlier you enjoy it", but the author is caught in a dilemma, stating that signing feels like being in debt, and not signing gets labeled as "unfilial". This dialogue seems at first glance to be a case of parental emotional blackmail, worried that the children will take the money and run. But if you only see it this way, you're underestimating this father. There is a high possibility that this is not a family ethics soap opera, but rather a meticulously calculated wealth inheritance strategy. This father is not worried about his children being unfilial; he cares about the money in his pocket and how to transfer wealth to the next generation in the smartest way possible. Borrowing is essentially a "gift" tax-saving method. Why is inheritance not just giving money directly, but instead set up like a loan, with Interest collected? Because Taiwan's "gift tax" and "inheritance tax" are calculated quite differently. First, let's understand lifetime gifting vs. inheritance. Gift tax: In Taiwan, each person has a gift tax exemption of 2.44 million per year. The portion that exceeds this amount is taxed starting at 10%, up to a maximum of 20%. This means that if this father wants to give his children a large sum of money, such as tens of millions of New Taiwan Dollars, the gift tax could be quite considerable. Inheritance tax: The exemption limit for inheritance tax is much higher, currently at 13.33 million. Furthermore, with various deductions for spouses, children, etc., the actual tax exemption threshold is even higher, and the tax rate is also a progressive system from 10% to 20%. For high-net-worth individuals, leaving wealth as inheritance after passing away allows them to enjoy a much more favorable tax exemption than gifting during their lifetime. But how can one give assets to descendants while still alive? The father in this article is very likely using the "loan" method to gift to his children. Effectively using "conditional gifting". This father's proposal of "paying Interest" requires a contract to be signed, which may legally be viewed as a type of "gift with burdens" or "conditional gift". This approach not only legally saves taxes but also achieves several objectives. Tax saving: Through the form of "borrowing", the father is actually gradually transferring assets to his children year by year, perfectly avoiding high gift taxes. This 3% Interest acts more like a formality, ensuring that this cash flow is legally sound and will not be deemed a direct gift subject to tax by the National Taxation Bureau. Additionally, as long as the contract is in place, this father retains "control" over his property, and if the children take the money and run, he can take legal action. The brave enjoy the world first. In the original author's description, the eldest son decides to sign a contract with his father to "get it early and enjoy it early". He may have evaluated that even if he pays 3% Interest each year, as long as he can find an investment with an annualized return over 3%, this deal is worthwhile. After all, investments with stable profits below 3% also have a chance to exceed this figure. This typical "opportunity cost" calculation is especially suitable for younger children, as accessing the assets given by their elders earlier allows for a longer time for those assets to appreciate. As Nick Maggiulli, author of the financial bestseller "Just Keep Buying", says in his book, "Funding them $100,000 when they are in their 20s is worth far more than leaving them $500,000 as an inheritance when they are in their 60s." In modern times, wealth transfer is no longer as simple as just "dividing the inheritance"; it involves some complex tax laws, legal contracts, and predictions about future markets. Many users have shared various good methods for giving assets to children under this Threads post. However, if this father can openly explain the tax-saving considerations of this method to his children, perhaps the atmosphere of the family meeting would be better. Related reports: Can AI reverse cases? A woman without a lawyer uses ChatGPT to dig up 5 million in inheritance fraud, persuading the court to reopen the investigation. Telegram founder makes a will, distributing $17.1 billion in wealth among 6 children and 100 sperm donors: fearing disputes over inheritance after death. Lawyer analysis: how to safely inherit Crypto Assets inheritance? <Threads Finance Hot Article: Father hasn't died yet "Dividing inheritance early, paying 3% Interest each year" Should children sign?> This article was first published in BlockTempo, the most influential Blockchain news media.