Dad buys stocks for $100K. 📈
Their value rises to $6 MILLION! 🚀
If he sells, he’ll have to pay taxes on a $5.9M capital gain.
Instead, he transfers the assets into a trust.
Borrows money against them. 💰
A loan isn’t considered income, so there’s no immediate capital gains tax.
He lives on borrowed money. Never sells.
He dies still owning the assets.
His children inherit the $6M portfolio. 👨👩👧👦
And under certain U.S. tax rules, the heirs may receive a stepped-up cost basis.
The IRS gets $0 in capital gains tax on that appreciation. 😂🚀
This strategy is known as BUY, BORROW, DIE.
The game is different when you own assets! 💎🔥
Their value rises to $6 MILLION! 🚀
If he sells, he’ll have to pay taxes on a $5.9M capital gain.
Instead, he transfers the assets into a trust.
Borrows money against them. 💰
A loan isn’t considered income, so there’s no immediate capital gains tax.
He lives on borrowed money. Never sells.
He dies still owning the assets.
His children inherit the $6M portfolio. 👨👩👧👦
And under certain U.S. tax rules, the heirs may receive a stepped-up cost basis.
The IRS gets $0 in capital gains tax on that appreciation. 😂🚀
This strategy is known as BUY, BORROW, DIE.
The game is different when you own assets! 💎🔥
