concha Posted February 24 Report Share Posted February 24 No, not that BBD. "Buy, Borrow, Die" Anyone familiar with this or already using it? I'm looking into it and it appears to be a great way to maintain a healthy income while avoiding taxes and maximizing the inheritance for my boys. Tips? Most importantly, what are the "gotchas" to look out for? Quote Link to comment Share on other sites More sharing options...
15yds4gibberish Posted February 25 Report Share Posted February 25 On 2/23/2024 at 6:39 PM, concha said: No, not that BBD. "Buy, Borrow, Die" Anyone familiar with this or already using it? I'm looking into it and it appears to be a great way to maintain a healthy income while avoiding taxes and maximizing the inheritance for my boys. Tips? Most importantly, what are the "gotchas" to look out for? I assume if you are thinking about this, you already have a trust set up for your kids. If not, start by setting one up. Otherwise, talk to your advisor about your specifics and BBD. I'd expect someday the step-up loophole will be closed...but probably not in our lifetime. High class problem to have. Good luck. Quote Link to comment Share on other sites More sharing options...
concha Posted February 25 Author Report Share Posted February 25 6 minutes ago, 15yds4gibberish said: I assume if you are thinking about this, you already have a trust set up for your kids. If not, start by setting one up. Otherwise, talk to your advisor about BBD. I'd expect someday the step up tax loophole will be closed...but probably not in our lifetime. High class problem to have. Good luck. Lots of people seem to think that you have to be very wealthy to benefit from the BBD strategy. Not so. Not at all. You don't need great wealth, just "enough" (which will vary by person and situation). You then need to stay on top of your assets/investments to ensure they are appreciating at a greater rate than the rates on the SBLOC or HELOC loans you are taking out. SBLOC loans appear to be at about 8% right now. If you invest in well-managed mutual funds, for example, you should be able to realize average annual yields in the 12%-15% range or higher. I've been running numbers and compared to the typical "cash-out your 401K/stocks" retirement plan, BBD will permit me greater income and also increase the potential inheritance of my boys by amounts in the six or seven figure range. Buy, Borrow, Die Strategy: What It Is and Why You Should Care "Buy, Borrow, Die" Estate Planning Strategy Explained A Primer On The “Buy, Borrow, Die” Strategy - Tax Planning HQ Quote Link to comment Share on other sites More sharing options...
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