They borrow against stock or other asset portfolio to access the liquidity without actually selling and creating a taxable gain.

The bank sees these as very low risk loans so often the rates are lower than prevailing mortgage rates.

They pay only interest and use the proceeds to buy luxury homes, yachts, jets, etc. Not only does inflation provide the discount, but when the wealthy person finally dies, the tax basis of the underlying assets is bumped up to market rate. The heirs then sell some of those assets (tax free) to pay the loan in full.

Life of luxury tax free plus discounted borrowing thanks to preferred rates and the inflation discount. It's wild.

It's strange to me that this is common practice yet the masses seem clueless about it. Doesn't even get picked up by conspiracy theorists.