For high-net-worth individuals and families, wealth management is not just about growing assets but about structuring them in ways that preserve value across generations. Investment portfolios, trusts, and property holdings all form part of an intricate web of financial planning where liquidity, tax, and succession considerations overlap.

In 2025, Securities Backed Lending (SBL) is increasingly being integrated into this framework. By allowing clients to borrow against investment portfolios without selling assets, SBL provides a flexible source of liquidity that supports tax efficiency, estate planning, and long-term investment strategies. Used intelligently, it can complement trusts, private banking facilities, and property finance, creating a more resilient and agile wealth plan.

The Wealth Planning Role of SBL

Traditionally, liquidity has come at the cost of selling assets. But disposals can crystallise capital gains, trigger tax liabilities, and disrupt carefully designed portfolios. For wealthy clients with international holdings, these issues are compounded by cross-border tax regimes and estate planning considerations.

SBL offers a way to access liquidity while leaving portfolios intact. It allows clients to maintain exposure to market growth, dividend flows, and investment strategies, while deploying capital towards property purchases, family needs, or succession planning. In this way, SBL operates not only as a credit facility but as a tool for wealth preservation.

Tax Efficiency: Avoiding Crystallisation of Gains

One of the most immediate benefits of SBL is tax efficiency. By borrowing against a portfolio rather than selling it, clients avoid triggering capital gains events. This is particularly valuable for US taxpayers or UK residents with significant historic growth in their portfolios.

For example, a client holding £10 million in equities with £3 million of embedded gains may wish to purchase a £4 million property. Selling securities to fund the purchase would crystallise gains, leading to a significant tax liability. By using an SBL facility, the client instead borrows against the portfolio, completes the purchase, and retains both the exposure and the tax position.

This makes SBL an attractive complement to strategies already used in property finance for HNWIs, where structuring often focuses on minimising unnecessary tax friction.

Estate Planning and Intergenerational Wealth

Estate planning is another area where SBL plays a role. Families often wish to support the next generation with property purchases or wealth transfers but are cautious about liquidating long-term assets. By borrowing against a portfolio, they can provide funds for children or grandchildren without disturbing trusts or long-term holdings.

In some cases, SBL can also work alongside trust structures. Trusts may hold securities portfolios that, while not easily liquidated, can be pledged for borrowing. Facilities structured in this way can provide liquidity for beneficiaries while maintaining the integrity of the trust’s investment strategy.

The same principle applies to estate settlement. Executors often face liquidity challenges in paying inheritance tax or distributing estates where assets are illiquid. SBL can provide interim funding, similar to probate lending, but secured on securities rather than property, creating more flexibility in managing transitions.

Investment Strategy Alignment

For many clients, the greatest risk of selling assets is disrupting long-term strategies. Portfolios are often designed with diversification and multi-year horizons in mind. Crystallising gains or liquidating positions prematurely can undermine these carefully balanced plans.

By using SBL, clients maintain exposure to markets while accessing liquidity for short- or medium-term needs. This makes it easier to align property acquisitions, business investments, or family support with existing wealth strategies, without the distortion that sales would create.

In this sense, SBL functions as a bridge not only to property finance but also to broader wealth objectives. It ensures liquidity is available when required while leaving investment strategies intact.

Risks Within a Wealth Planning Context

While SBL can enhance wealth planning, it is not without risks. Market volatility remains the most significant. A falling portfolio value can lead to margin calls, which may force clients to commit additional collateral or repay part of the loan. In the absence of liquidity, forced sales may occur at unfavourable times.

There is also the risk of over-reliance. Borrowing against securities should be carefully balanced within an estate or trust structure. Too much leverage can compromise long-term stability, particularly where intergenerational transfers are involved.

Finally, cross-border complexities must be considered. Borrowers may pledge portfolios held in one jurisdiction to secure lending in another. This raises issues of regulation, tax treatment, and currency exposure. For example, a euro-denominated portfolio pledged for a sterling loan introduces FX risks that must be managed carefully, much like those described in cross-border property finance.

A Practical Example

Consider a family office with a $50 million global equities portfolio. They wish to support two children in acquiring London properties worth £5 million each. Selling assets would crystallise tax and undermine the family’s long-term investment strategy.

Instead, the office arranges a £7 million SBL facility against the portfolio, advanced in sterling. The children acquire their properties, and the portfolio remains fully invested. Repayment is planned through a combination of long-term mortgages and future liquidity events. The family achieves its goal of supporting the next generation while preserving wealth.

This example shows how SBL can be integrated into intergenerational wealth planning without sacrificing investment continuity.

The 2025 Landscape: Why SBL Matters More Now

In 2025, the integration of SBL into wealth planning reflects broader trends. Rising tax pressures, greater regulatory scrutiny, and increased cross-border wealth mobility have made flexibility a priority for wealthy families. Liquidity needs to be available when required, but not at the cost of triggering tax or undermining portfolios.

Private banks are promoting SBL more actively as part of their wealth management services, while specialist lenders are stepping in for families with unconventional portfolios or urgent needs. The result is a market where wealthy clients have more options than ever before to align SBL with tax, estate, and investment strategies.

How Willow Can Help

At Willow Private Finance, we recognise that securities backed lending is not just a credit facility — it is a strategic tool. We work with clients, family offices, and trustees to structure facilities that complement their wealth, tax, and estate objectives.

Our expertise spans both private banks and specialist lenders, allowing us to source cost-effective solutions for clients with existing banking relationships as well as flexible alternatives for those with more complex needs. We ensure that facilities are aligned with long-term investment strategies, that risks are understood, and that repayment plans are realistic.

For clients integrating SBL into intergenerational planning, we provide discreet, bespoke support to ensure liquidity enhances wealth transfer rather than undermining it. For those navigating cross-border structures, we manage the complexities of jurisdiction and regulation.

By combining financial insight with practical execution, Willow helps clients unlock liquidity while protecting the structures that sustain their wealth across generations.

Frequently Asked Questions

Why integrate Securities Backed Lending (SBL) into wealth and estate planning?
Because SBL enables access to liquidity without selling assets, meaning clients can borrow against portfolios while preserving long-term investment exposure and avoiding unwanted capital gains. Willow Private Finance

How does SBL offer tax efficiency?
By avoiding disposals, clients defer crystallisation of gains. For example, instead of selling securities to fund a property purchase (and triggering CGT), they borrow against those assets, keeping the investment intact. Willow Private Finance

What role does SBL play in intergenerational and estate planning?
SBL can provide liquidity within trusts or estates (e.g. for inheritance tax, beneficiary support) without forcing the sale of investments or real assets during sensitive transition periods. Willow Private Finance

What investment alignment risks must be managed?
Market volatility is a major risk: if portfolio values fall, margin calls may require topping up collateral or partial repayment. Over-leverage can undermine long-term wealth plans. Willow Private Finance



What are the challenges of cross-jurisdiction SBL?
When pledging portfolios in one jurisdiction to obtain funded in another (e.g. U.S. investments for a U.K. loan), issues of regulation, tax treatment, and currency mismatches must be managed carefully. Willow Private Finance

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