The problem with running up debt is that upon death is I’m wondering if it can count against your estate. If you were that uncaring, you could run up your debt right now, provided you provided a separate trust for your kids and sheltered what they inherit from you. But I suspect easier said than done.
Besides, I don’t think people “choose” to run up their debt if they had a choice between being in no debt or being in debt. So if you’re already thinking about this, you’re already probably one who is financially responsible who would never do this. It becomes a theoretical exercise into “how can i mess with the system without getting screwed over by it”….
I think there’s perhaps a different way of looking at this problem, that I personally have adopted. Aside from setting enough aside for my kid in a trust, I don’t plan on living very long… 🙂
It’s just not practically feasible given everything that will most likely go wrong.
It’s like having a german car. You know the longer you keep it, the bigger the headache it will be as just it’s guaranteed to steadily get worse and worse each year after it reaches a certain age….So after a certain age, you just put in oil and gas, and drive it until it goes into the ground, with minimum financial maintenance….
So figure maybe a good another 23 years on the odometer, that would take me to roughly 65…Just in time for that I can start withdrawing from 401k/IRA, and perfect time for my kid to inherit and get that capital gains step up cost basis when I’m dead. And by that age, my kid will be a young adult. Maybe married, maybe not. But she’ll definitely have her own house by then (of course I’ll be paying for it)…
