At a round table discussion with our team, Henry Hollingdrake: representing; ARM Trustees Limited, stated that 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.
He buttressed that this is ironic given today’s world offers a lot more accessible tools for transfer and preservation of wealth. Tools like estate planning, wills and relevant estate planning vehicles such as Trusts and Foundations for example.
In breaking down this claim, he further explained that in today’s world, owning valuable assets does not always 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 state to decide.
Even if there is an estate plan in place, it would at least need to provide for adequate asset protection and future growth. One also needs guard against excessive professional fees charged against an Estate that is fraught with complications on death.
Engaging him further, we asked, if your claims are indeedvalid, how does one ensure that wealth is transferred and enjoyed by one’s next generation?
In his response, he stated that first, we must be willing to leverage estate planning tools like Wills, Guardianship documentation, Trusts and Foundations as well as the utilisation of relevant co-ordinated structure for larger and more complex estates. He explained that an Estate Plan be it local or international includes having strategies in place 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.
An estate plan will help individuals and families with both local and international assets, investments and business operations give careful consideration and properly document their holdings to ensure the assets are protected and passed on to future generations. This is effective, legally robust, practical and efficient. Estate planning offers you protection without borders, especially considering potential shifts in Residency and Citizenship, which may impact one’s wealth. The protection of effective management and ownership of a business operation can also be safeguarded by setting up a Succession plan.
Mr. Hollingdrake concluded the round table discussion by stating that familieswho seek to get started on understanding what is required for an estate plan or indeed would like to set one up, can reach out to ARM Trustees Limited, an independent award-winning firm with over 20 years’ experience in this field and now also offering international solutions.’