Dad buys stocks for $100K
Their value rises to $6M
If he sells them, he’ll have to pay tax on a $5.9M gain.
Instead, he transfers them to a trust.
Borrows against them.
A loan isn’t income. So there are no taxes.
He lives on borrowed money. Never sells.
He dies owning the asset.
His children inherit $6M
The IRS gets $0
This is called the “Buy, Borrow, Die” strategy.😂😂🚀
Their value rises to $6M
If he sells them, he’ll have to pay tax on a $5.9M gain.
Instead, he transfers them to a trust.
Borrows against them.
A loan isn’t income. So there are no taxes.
He lives on borrowed money. Never sells.
He dies owning the asset.
His children inherit $6M
The IRS gets $0
This is called the “Buy, Borrow, Die” strategy.😂😂🚀
