I saw this article on Forbes.com and thought it must be about student loans. The article is entitledThere’s No Escape: Death, Taxes and Student Loans. My thought was the article was about how student loan payback can’t be avoided. I know, for example, generally speaking student loan debts are not discharged in bankruptcy. However, I know Los Angeles bankruptcy attorney, Christine Wilton, was able to discharge student loan debt in a bankruptcy… but I digress.
However, this article runs deeper than just student loans. It mentions a case where a student died, actually committed suicide and so his loans were wiped away at death. However, loans that are forgiven are treated as INCOME. You say that’s not fair! I know, right!?
As this Forbes article explains the IRS isn’t warm and cuddly and they don’t care that it is not fair!
Anyway I encourage you to read this article as it deals with these issues which are very relevant for YOU when you are doing your estate planning. Read about death, taxes and student loans here!