Yeah this is definitely missing a step somewhere. The loans have to be paid off even if you're dead. Before your kids get anything your assets are used to pay off your debts. Unless there's a loophole in there where the kids can assume the debts and somehow get the assets tax free, then this post doesn't make sense.

**Edit: Ah ok the loophole is in allowing the heirs to use step up basis when inheriting the assets. The whole lifetime gains on the assets goes untaxed.

Yeah that's a big loophole.