How do the super-rich pay back loans that they take out against their assets to unlock cash?

Question

I’ve seen in a few places that the super-rich can unlock their wealth ‘tax free’ by taking out a loan secured against their shareholdings or other assets, then use the cash from the loan to buy real stuff.

But how do they pay back the loan?

In: 196

Answer 1

The interest is paid from the dividends of their investments, and the investment itself is the collateral securing the loan.