12 April 2023


Invicta Insights: Estate Planning – Multi Generational Wealth

Preserving your legacy, transferring your wealth in the way you would like it to be distributed and managing local legal and regulatory requirements alongside, family expectations, makes estate planning an essential part of private wealth management.

In today’s world, the chances of wealth being efficiently transferred successfully to the next generation without incurring liabilities and unnecessary risk; combined with the ability to further invest free from any restraints and excessive taxation are more complicated now than ever before. This is ironic given that today’s world offers many accessible tools and estate planning vehicles such as Wills, Trusts and Foundations, hence the need to engage with experienced expertise together with independent and experienced fiduciary services providers.

Owning valuable assets does not guarantee the value of the assets will be preserved when transferred to the next generation. In worse cases where there is intestate succession, i.e. no Will or mechanism in place to pass on wealth, this function is left to the relevant jurisdiction to decide.

To ensure successful sustainable transfer of wealth, estate planning needs to consider Wills, Guardianship documentation, Trusts and Foundations including other structures determined by the size and complexity of your estate.

The protection of assets can provide protection for existing wealth but also future growth.  This can also include any future parameters you wish to impose upon your Estate for example forming a trust to restrict a family business being sold into private equity ownership or only investing in sustainable areas.  

An estate plan be it local or international, needs to include strategies to manage the effect of inheritance tax, ease of wealth transfer and business succession relating to investments, real-estate, your pension fund, and other assets, which could form a significant portion of your wealth.

Such a plan is critical for wealthy individuals and families with both local and international assets, investments, and business operations and should give careful consideration and properly document any holdings to ensure the assets are protected and passed onto future generations.

Effective, legally robust, practical and efficient estate planning can offer you protection without borders, especially considering potential shifts in residency and citizenship, which may impact one’s wealth. Effective management and ownership of a business operation can also be safeguarded by setting up a succession plan.