Family Wealth Planning

There are several studies which have shown that 70 percent of wealthy families lose their wealth by the second generation. By the third generation, that number rises to 90 percent.

This happens not because of bad luck, but due to the absence of structured inheritance planning. When wealth is passed over without clear guidance or any restrictions, heirs often mismanage their newly inherited fortunes, leading to quick draining of funds. In other cases, disputes among family members can create unnecessary conflict, further undermining the legacy that was meant to last.

We take a proactive approach to multi-generational inheritance planning. We aim to protect your capital, distribute it in a structured manner, and safeguarded against mismanagement. By implementing clear guidelines and educating beneficiaries on responsible financial management, we help families to avoid the common setbacks that lead to financial loss.

One of the most efficient ways to protect generational wealth is through an international trust. Without proper structuring, your assets might be exposed to inheritance tax, probate, or potential claims from creditors. A trust allows you to set clear terms for how your assets are managed and distributed, to sustain long-term security and control.

There are typically three parties involved in a trust. The first is the grantor, the individual who establishes the trust and sets its governing rules. These rules dictate how the assets within the trust will be managed and distributed. The second is the trustee, which can be an individual, a company, appointed to oversee and enforce the terms set by the grantor. Their role is to ensure that the trust operates according to its original intent. The third party is the beneficiary or beneficiaries, who will ultimately receive benefits from the trust as dictated by its terms.

One of the most common structures we establish for clients is a beneficiary trust, which is typically placed around investments, bank accounts and other assets. In the event of the grantors’ passing, the trust takes effect and ensures that assets are distributed according to the pre-set directions, protecting the intended heirs from legal disputes, inheritance taxes, or mismanagement.

When a trust is incorporated in a low-tax jurisdiction, inheritance tax can be completely avoided as long as the assets remain within the trust. Beneficiaries will only be taxed when they withdraw funds, and the rate will depend on their country of residence. This structure ensures that your assets remain intact and is efficiently passed down towards the next generation.