We enter the world with no awareness of the future. By the age of two, we start to grasp that the future exists. Around the age of five, we develop the ability to envision and plan for it. Most of us, however, struggle throughout our lives to define plans that guide us from the present towards our future aspirations.
This holds true even for wealthy families, who may be expert at creating wealth but are unlikely to be equally expert at planning the long-term management of it. In that regard, consider the findings of The Rise of Generational Wealth: Quintet/BlackRock European Wealth Insights, a recent survey of European high net worth individuals.
Among survey respondents who have not yet retired, one-third said they have not begun to make a financial plan for their golden years. Further, half of those who have at least started making a retirement plan said they do not currently have a full plan in place. Similarly, while 80% of participating HNWIs said they intend to pass their wealth on to their children, just 34% have a full plan in place to do so.
At a time when annual inheritance flows are higher than at any time in history – particularly in Europe, which is home to over 150,000 ultra-high net worth individuals – the need for expert wealth planning is vast and rapidly expanding. And at the heart of wealth planning is a simple but powerful idea: each family’s situation is unique.
STARTING WITH A CONVERSATION
Wealth planning starts with a conversation about family dynamics, business interests, philanthropic goals and deeply held values. Ideally, that conversation about the future will itself be multigenerational, including members of the next generation so they can share their own priorities, concerns and aspirations.
The goal is to first understand each client’s needs and then – based on that understanding – build a tailored strategy that can withstand short-term volatility, weather broader economic cycles and ensure sustained value creation from one generation to the next.
Wealth planning starts with a conversation about family dynamics, business interests, philanthropic goals and deeply held values.
As Seneca, the ancient Roman philosopher, wisely noted: “If a man does not know to which port he sails, no wind is favorable.” In other words, without a clear objective, it is impossible to measure progress. That is why wealth planning starts with a conversation – or multiple conversations – about each client’s unique needs.
STRATEGY IN AN AGE OF COMPLEXITY
Once long-term objectives are clear, strategy can be defined. Family-type vehicles, tax-efficient investing, estate planning and succession are just the beginning. Wealth planners today are increasingly called upon to navigate complex international regulations, advise on cross-border family arrangements and even design charitable foundations. They work closely with external partners, such as legal experts, to ensure that no aspect of a client’s financial life is left exposed.
Perhaps the greatest value wealth planning brings is peace of mind. In an environment where geopolitical instability and volatile markets dominate headlines, having a clear, flexible plan in place provides reassurance. Clients know their assets are protected, their loved ones are cared for and their philanthropic wishes will be honored. This is not just about tax mitigation or asset protection – it is about ensuring that wealth serves life, not the other way around.
QUINTET: Wealth Planning & Structuring
At Luxembourg-headquartered Quintet Private Bank, we believe that understanding generational drivers and differences is more crucial than ever. Our Wealth Planning & Structuring team – comprising experienced professionals across more than 30 cities in Europe and the UK – focuses on helping families address some of their most important long-term questions: How to protect their legacy, pass on their wealth and do right by their loved ones.
We understand that everyone’s situation is unique, whether it involves blended families, changing relationships or new business ventures. The same goes for their portfolio of assets. That is why we ensure that we are in close proximity to our clients and invest time helping them maximize the impact and value of their wealth for the next generation, while ensuring their own financial security remains a priority.
At Luxembourg-headquartered Quintet Private Bank, we believe that understanding generational drivers and differences is more crucial than ever.
Our tailor-made wealth planning services are designed to help the families we serve realize the full value of their wealth, protect that value and pass it on. Such services include tax-residence analysis and advice, covering international mobility and special tax regimes such as the UK foreign income and gains regime; the management, monitoring and change of matrimonial property regimes; and the establishment of wills and life insurance.
Wealth structuring services, in turn, are designed to help our clients identify the appropriate wealth structure, reflecting their individual investment, business and family situation. Such complementary services include structuring real estate assets, tailor-made investment vehicles and philanthropic/family-type vehicles such as partnerships and charitable foundations.
There are of course countless choices families must make when passing on their wealth. Whatever choices they ultimately make, the best path to secure a lasting legacy is through honest, open conversations about the future, followed by the creation of a comprehensive long-term plan.