Core Concept - The "buy, borrow, die" strategy is a wealth preservation technique utilized by ultra-high-net-worth individuals, allowing them to buy appreciating assets, borrow against them for liquidity, and pass on the assets tax-free upon death [4][5][6]. Group 1: Strategy Overview - The strategy involves three main steps: purchasing appreciating assets, borrowing against these assets to access liquidity without triggering capital gains tax, and passing the assets to heirs at death [3][4]. - In the US, the "step-up in basis" rule allows heirs to inherit assets at current market value, eliminating original capital gains liability [3][10]. - The strategy has been popularized in the US and is credited to Prof Edward McCaffery, who introduced the term in the 1990s [2][5]. Group 2: US Example - An example illustrates that if an individual buys shares worth $500,000 and they appreciate to $10 million, borrowing against the shares allows access to funds without incurring capital gains tax [7]. - Upon death, heirs inherit the shares at the appreciated value of $10 million, with no capital gains tax liability due to the step-up basis [8]. Group 3: UK Comparison - The "buy, borrow, die" strategy faces challenges in the UK due to inheritance tax, which is levied at 40% on estates above £325,000, making it harder to pass wealth tax-free [9][10]. - While capital gains tax is only paid upon sale in the UK, the inheritance tax significantly impacts the ability to transfer wealth effectively [12][13]. - The UK does not offer the same multimillion-pound exemptions as the US, making estate planning more complex for families [13][14]. Group 4: Alternative Strategies - An alternative strategy suggested for the UK is "sell, gift, die," which involves selling assets and gifting them before death to minimize tax liabilities [19]. - This approach requires careful timing, as gifts must be made at least seven years before death to avoid inheritance tax [19][20].