Wealth Transfer

Estate planning

Transfer of wealth to the coming generations

Research shows that wealth created by the first generation is on average lost by the third generation. The families that have successfully managed to pass on their wealth over many generations all have one thing in common: their wealth planning process has been and is actively managed by professional wealth advisors.

We start by identifying who should be included as beneficiaries of the estate. As families will grow and change, groups or classes of beneficiaries should be named rather than individuals. By choosing to include classes instead of named individuals, disclosure of the identity of the beneficiaries can be avoided since the members of the classes of beneficiaries are not known until the time of distribution of the assets of the estate.

The next step is choosing the vehicle or tool used for the estate planning. Since the beneficiaries at the time of your departure may be residents in different countries in the world where local inheritance rules and regulations will apply, it is important to choose an estate planning tool that takes precedence over local legislation.

With careful planning, it is also possible to avoid probate administration of the estate, and to avoid the possibility of your heirs challenging your will. This assures that your will and intentions will prevail.

Thirdly, administrators and protectors of the estate must be chosen. Although a close friend of the family may act as protector of your estate, we strongly advice that regulated and licensed professional such as lawyers and fiduciary services providers be used.

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