---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/39130370.md"
description: "💰 "Buy, Borrow, Die": A common asset strategy for the wealthyAssume a simple example:A father buys $Grayscale Bitcoin Mini Trust ETF(BTC.US) with $100,000.Years later, the asset appreciates to $5,000,000.If he sells directly, the capital gain on the Bitcoin would be:$5,000,000 − $100,000 = $4,900,000This portion is typically subject to capital gains tax in the US.Many high-net-worth families don't do this.They use a classic structure known as:Buy → Borrow → DieStep 1: Buy (Purchase and hold long-term)After purchasing the asset, hold it long-term without selling.Because as long as it's not sold, capital gains are usually not taxed.Step 2: Borrow (Take out a loan using the asset as collateral)When the asset appreciates to a high value, it can be pledged to a bank as collateral.For example:Use $Grayscale Bitcoin Mini Trust ETF(BTC.US), stocks, or real estate as collateral.The bank provides a loan.The key point is:A loan is not income, so it's not taxable.This allows one to:Use the borrowed money for consumption or investment.Step 3: Die (Step-up in basis upon death)In the US, many assets receive a:step-up in basis upon inheritance.This means:When the heir receives the asset, its cost basis is reset to the market price at that time.In this example:The child's cost basis upon inheritance is $5,000,000.If they sell immediately, theoretically, there is almost no capital gains tax.So the logic of this structure is:Buy and holdBorrow against the asset to fund lifestyleUltimately pass the asset to the next generationHowever, several practical factors need attention:1️⃣ Secured loans typically require stable assets and good credit2️⃣ May face a margin call if the market declines3️⃣ Tax laws may change in the futureThis strategy is commonly seen in reality for:StocksReal estateCrypto assetsEspecially for assets that appreciate long-term but don't need to be sold.📊 In summary:The goal for many high-net-worth investors is not "selling for profit."But rather:Letting the asset continue to grow while obtaining cash flow through borrowing."
datetime: "2026-03-08T12:32:44.000Z"
locales:
  - [en](https://longbridge.com/en/topics/39130370.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/39130370.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/39130370.md)
author: "[辰逸](https://longbridge.com/en/profiles/16318663.md)"
---

# 💰 "Buy, Borrow, Die": A common asset stra…


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## Comments (1)

- **壹路 · 2026-03-12T00:17:38.000Z**: Well spoken