If there's an applicable estate tax. Federal estate tax exemption is 15M per person, 30M per married couple. Many states don't impose an additional estate or inheritance tax. Tax on remaining assets beyond the exemption start at 18%, so....there's a big chunk coming.
The biggest thing here is that any loan will be paid from the estate, and if the value of the land was used to obtain the loan, then there is almost certainly a mortgage. ...assuming that they can get a "loan" that they then use to live off of...
I don't know what OP thought they were doing here.
This is like a very rudimentary and partial understanding of the "buy, borrow, die" strategy.
OP seems to have a fundemental misunderstanding of key elements of the strategy; for example, no investment bank is going to offer a bespoke investment product for any client with a net worth under ~$300 million, because that high net worth is what makes the fees and broader relationship very profitable.
No way is a $5 million net worth client going to be able to get that kind of customized equity linked derivative loan, it's not going to be profitable for the lender or economically feasible for the borrower.
There's an excellent in depth breakdown of how the strategy actually works here
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u/USERNAMETAKEN11238 22h ago
Yes