Plain English
Buy, Borrow, Die is a tax-efficiency strategy used by wealthy families for generations. You buy assets that appreciate, hold them long-term, and when you need liquidity, you borrow against them rather than sell. At death, the assets pass to your heirs at a stepped-up basis — meaning the embedded capital gain is permanently erased for tax purposes.
How it actually works
The strategy has three legs. Buy: acquire long-term appreciating assets (equities, real estate, Bitcoin, Ethereum). Borrow: instead of selling when you need cash, take a loan against the assets — loans are not taxable events. Die: under current US tax law, your heirs inherit at fair market value, eliminating the unrealized gain for tax purposes.
The same playbook applies whether the asset is a stock portfolio (using securities-based lending) or a crypto stack (using crypto-collateralized loans).
What it means for you
For members with appreciated crypto positions, this is the structural reason to borrow rather than sell. The mechanics translate directly: hold the long-term asset, draw stablecoin loans for spending, refinance as needed, and let the step-up handle the tax bill.
We teach the practical execution: which lenders to use, how to size loans against volatile collateral, how to model liquidation risk, and how to coordinate with your estate counsel to ensure the step-up applies cleanly.
Educational content only. Not investment, tax, or legal advice.