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"die" is a part of the strategy but its also 100% going to happen. The end result is the person, while living, gets the benefit of the unrealized gains, which i
by Eddy_Viscosity2 2y ago
"die" is a part of the strategy but its also 100% going to happen. The end result is the person, while living, gets the benefit of the unrealized gains, which is the same as realizing those gains, tax free. When (not if) they die, the taxes are much less. So yes it is a loophole.
- modeless 2y agoThe taxes are not less. Almost certainly more. Until stepped-up basis erases them. Eliminate stepped-up basis and you kill the strategy. Stepped-up basis is the only loophole here.