Can the “Buy, Borrow, Die” Strategy Work in Cross-Border Wealth Planning?

Among ultra-high-net-worth families, few wealth-planning concepts have attracted as much attention as the so-called “Buy, Borrow, Die” strategy. While the phrase may sound provocative, it describes a long-discussed approach to preserving liquidity, managing potential tax consequences, and transferring wealth across generations.

For internationally active individuals and families, however, the concept is rarely as simple as the headline suggests. Once assets, residences, businesses, trusts, heirs, and tax obligations span multiple jurisdictions, wealth planning becomes significantly more complex. Rather than focusing on a single strategy, many families evaluate how borrowing, liquidity management, estate planning, and international diversification fit together within a broader long-term framework.

What does “Buy, Borrow, Die” actually mean?

The concept is generally built around three broad stages.

Buy

The first stage focuses on acquiring assets that investors expect may appreciate over time, such as:

• publicly traded securities
• private companies
• real estate
• private equity
• other long-term investments

Rather than trading frequently, the emphasis is often on maintaining ownership over extended periods.

Borrow

Instead of selling appreciated assets to generate liquidity, which may trigger capital gains taxes in some jurisdictions, some investors choose to borrow against those assets.

The underlying assets generally remain invested while serving as collateral.

Die

In certain jurisdictions, inherited assets may receive favorable tax treatment or a step-up in tax basis upon death, although the rules vary significantly between countries and are subject to legislative change.

Because estate, inheritance, and capital gains tax regimes differ widely around the world, the final stage of the strategy requires careful analysis based on the family’s country of residence, citizenship, domicile, asset location, and applicable tax laws.

Why is cross-border planning increasingly discussed?

For internationally active families, wealth is often no longer concentrated within a single country.

Assets may include:

• businesses in multiple jurisdictions
• investment portfolios
• international real estate
• private equity investments
• trusts
• family offices
• multiple banking relationships

At the same time, family members may reside in different countries, each with its own tax, reporting, and succession rules.

As a result, a strategy that may be effective in one jurisdiction could produce very different outcomes elsewhere.

International wealth planning increasingly involves coordinating:

• taxation
• estate planning
• banking relationships
• financing
• currency exposure
• succession planning
• regulatory reporting

The discussion is therefore often broader than simply reducing taxes.

Borrowing against existing assets has long been used within international private banking as a liquidity-management tool.

Why can borrowing play an important role?

Rather than selling investments during periods of market volatility or triggering taxable events where applicable, some investors evaluate secured lending solutions that provide access to capital while maintaining ownership of underlying assets.

Examples may include:

• Swiss franc Lombard loans
• securities-backed lending
• real estate financing
• business credit facilities

At the time of writing, certain Swiss franc-denominated Lombard facilities may be available at interest rates starting around 1.25% per annum, subject to collateral quality, client eligibility, loan size, and prevailing market conditions.

Lower borrowing costs alone do not determine whether a strategy is appropriate. Currency exposure, leverage risk, liquidity requirements, and repayment obligations all require careful consideration.

Why does Switzerland often enter the conversation?

Switzerland has long been associated with international wealth management because of its established private banking infrastructure, political stability, historically stable currency, and experience serving internationally active clients.

Many global families evaluate Switzerland for reasons that extend beyond investment management alone, including:

• multi-currency banking
• international custody
• Lombard lending
• jurisdictional diversification
• family governance
• succession planning
• cross-border coordination

For some investors, Swiss banking relationships become one component of a broader international wealth strategy rather than a standalone solution.

Is tax planning becoming more international?

Recent developments suggest that tax planning is becoming increasingly global.

Governments around the world continue to examine:

• wealth taxes
• estate taxes
• unrealized capital gains proposals
• inheritance taxes
• exit taxes
• reporting requirements
• beneficial ownership transparency

For internationally active families, these developments reinforce the importance of reviewing wealth structures regularly rather than waiting for legislation to change.

Planning discussions increasingly extend beyond taxes alone to include:

• jurisdictional diversification
• family governance
• succession planning
• liquidity management
• cross-border asset ownership
• residency considerations

How does Alpen approach these conversations?

At Alpen, discussions typically begin with the family’s overall objectives rather than a single tax strategy.

Areas commonly evaluated include:

• global balance sheets
• liquidity requirements
• financing options
• multi-currency exposure
• international banking relationships
• succession objectives
• estate planning
• jurisdictional diversification

Where appropriate, Alpen works alongside clients’ legal and tax advisors to seek to promote coordination of financial decisions across jurisdictions and aligned with applicable regulatory frameworks.

Because every family is different, there is rarely a universal solution.

Frequently Asked Questions

Summary

The growing attention surrounding “Buy, Borrow, Die” reflects a broader shift in how internationally active families think about wealth. Increasingly, the discussion extends beyond investment performance to include liquidity, financing, taxation, succession, jurisdictional diversification, and the long-term organization of family wealth.

For many global families, the central question is not whether to adopt a particular strategy, but how different planning tools may work together within an integrated framework. Borrowing, investment management, estate planning, and international diversification may be evaluated together effectively when considered collectively and coordinated with experienced legal, tax, and financial professionals across relevant jurisdictions.

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