Luxury and beyond: the role of lifestyle management for HNWIs

Written by

High-net-worth (HNW) families and individuals often lead dynamic and complex lives, balancing professional commitments, personal interests, and diverse family priorities. According to Julius Baer’s Lifestyle Index, HNWIs are shifting toward experiential spending, prioritising meaningful travel and leisure activities that align with their personal values. This includes sustainable travel and experiences that combine luxury with impact, such as philanthropic or ESG activities.

Research highlights the increasing demand for personalised concierge and lifestyle management among HNWIs. A 2023 report by Knight Frank[1] indicated that 69% of ultra-high-net-worth individuals (UHNWIs) are focused on safeguarding their wealth and legacy, with concierge services playing a vital role in achieving these goals.

A structured approach to concierge services focuses on defining annual activities, reporting frameworks, and payment schedules to meet family needs. Luxury lifestyle consultancy Quintessentially[2] reported a 30% rise in demand for bespoke concierge services post-pandemic, reflecting a shift towards outsourcing complex personal and professional tasks.

In this article, we ​highlight how partnering with providers who offer a breadth of knowledge and support across concierge and lifestyle services can give tailored support that ensures seamless management of daily responsibilities, luxury assets, and long-term goals.

The demand for concierge and lifestyle needs

  • Emigration assistance: Supporting families with relocation logistics, immigration processes, and integration into new communities, ensuring a smooth transition across jurisdictions and enabling mobility overseas for HNWIs.
  • Global travel assistance: Offering bespoke travel planning and comprehensive logistics management, tailored to the specific needs and preferences of each client. Covering everything from creating luxurious itineraries with exclusive accommodations, private jet charters, and bespoke experiences, to managing last-minute changes or unforeseen circumstances.
  • Property oversight and management: HNWIs require comprehensive property management, ensuring residential and investment properties are meticulously maintained, staffed, and financially overseen. This includes scheduling regular maintenance, managing staff like security and housekeepers, and handling budgeting for upkeep, taxes, and insurance. Additionally, it involves ensuring compliance with local regulations and optimising rental income or investment returns, providing peace of mind and protecting the value of each property.
  • Family support: Engaging with families on a deeper, more personal level to address unique needs. This can cover anything from university arrangements for children or support for hobbies like equestrian activities or specific sports.
  • Luxury asset management: Expertise in overseeing and maintaining luxury assets collected and owned by a HNW family. This could include anything from aircraft, marine vessels/yacht management and high-value art collections, ensuring proper care, compliance, and insurance.
  • Private banking and tax support: Coordinating with private banking institutions and providing insights into global tax planning to optimise financial outcomes.
  • ESG integration: Advising families on how to embed ESG principles into wealth planning and investments, aligning financial strategies with sustainable values.

The Belasko solution

At Belasko, we provide comprehensive concierge and lifestyle management services, designed to enhance the lives of our HNW clients. Our key offerings include:

  • Lifestyle and travel planning: Crafting bespoke itineraries and managing travel logistics with precision.
  • Technology and data security: Implementing robust systems to safeguard sensitive family information.
  • Reducing friction in everyday life: Streamlining administrative and operational tasks to allow families to focus on their passions and priorities.
  • Family education and governance: Providing guidance on succession planning, financial education for the next generation, and establishing effective governance structures.
  • Administrative and personal support: Handling everything from scheduling and correspondence to arranging bespoke services and events.
  • Art and collectibles management: Offering expertise in curating, insuring, and managing high-value collections.

Enhancing everyday life

By offering a blend of practical support and personalised services, we ensure that HNW families can focus on what matters most—their goals and passions as well as wealth preservation and enjoyment. Whether navigating complex tax regulations, managing luxury assets, or integrating ESG values into wealth planning, our team is committed to taking the friction out of everyday life and providing exceptional value.

Through our holistic and tailored approach, Belasko delivers peace of mind, enabling families to embrace opportunities and enjoy a fulfilling lifestyle with the confidence that every detail is carefully managed.

If you’d like to find out how we can support you, get in touch with Ross Youngs ([email protected]).

[1] https://www.knightfrank.com/wealthreport

[2] Quintessentially Lifestyle Trends Report: https://www.quintessentially.com

Belasko wins WealthBriefing Channel Islands Award

Written by

Leading wealth management industry participant, Belasko has been selected as a winner in the ‘Client Lifecycle Management’ category at The WealthBriefing Channel Islands Awards 2024.

Showcasing ‘best of breed’ in the Channel Islands region, the awards have been designed to recognise outstanding organisations grouped by specialism and geography which the prestigious panel of independent judges deemed to have ‘demonstrated innovation and excellence during the last year’.

Each of these categories is highly contested and is subject to a rigorous process before the ultimate winner is selected by the judges. It is this process that makes WealthBriefing Channel Islands awards so prized amongst winners.

Participants around the world recognise that winning awards is particularly important in these challenging times as it gives clients reassurance in the solidity and sustainability of the winner’s business and operating model.

Commenting on the firm’s triumph, James Michel, Private Wealth Director, said:

“Winning this award validates our commitment to excellence and bolsters our reputation as a leading private wealth provider. It enhances our visibility among prospective clients and our intermediary network, strengthens our position in competitive markets and will hopefully open doors to new opportunities and partnerships. Our team’s expertise and dedication are at the heart of our success and their collaboration and shared commitment to client success have cemented Belasko’s reputation for excellence.”

Stephen Harris, ClearView Financial Media’s CEO, and publisher of Wealthbriefing, was first to extend his congratulations to all the winners “Every category winner and highly commended firm has been subjected to rigorous and independent judging process and be rightly proud of the success they have achieved this year. “We have seen a marked increase in entrants and interest in all our global awards programmes and Wealthbriefing MENA is no exception. These awards are so beneficial as they give organisations and individuals the opportunity to clarify their strategic thinking, have it independently validated, be recognized internally and externally and to celebrate in style with their peers.

I offer my congratulations and best wishes for the future to all winners and highly commended firms – they are all worthy recipients who join the elite list of wealth management professionals who form global elite of Wealthbriefing Channel Islands winners”.

Winners and highly commended companies were announced on 5 December 2024 at The Royal Yacht Hotel.

If you’d like to find out more about our private wealth service offering in the Channel Islands, please get in touch with Ross Youngs ([email protected]).

Leveraging expertise for entrepreneurial success and dynastic wealth protection

Written by

In today’s rapidly globalising world, entrepreneurs and wealthy families are seeking innovative solutions for scaling their businesses, optimising tax structures, and safeguarding wealth across generations. Offshore structures, when used strategically and in compliance with regulations, offer one such powerful approach. These structures, including offshore trusts, holding companies, and private foundations, can not only help entrepreneurs maximise their assets but also ensure that family wealth transcends generations.

Below, Andy Bailey, our head of private wealth, explores the benefits and considerations for using offshore structures to support entrepreneurial ambitions and protect dynastic wealth.

  1. Asset Protection and Risk Management

The fast pace of entrepreneurial ventures often entails substantial risks, from market fluctuations to lawsuits. Offshore structures, like an offshore trust, can shield assets by holding them in a jurisdiction separate from the entrepreneur’s primary location. This can make it more difficult for creditors to access personal assets in the event of legal action, providing an essential layer of protection, helping entrepreneurs safeguard their personal wealth.

Entrepreneurship remains a primary driver for wealth creation, particularly for those reaching ultra-high-net-worth (UHNW) status. A study revealed that 75% of individuals with assets over $30 million have backgrounds in entrepreneurship[1], underscoring the importance of asset protection strategies for those with substantial, self-made wealth​.

Establishing offshore holding companies allows entrepreneurs to centralise their intellectual property (IP) rights, patents, or brand assets in jurisdictions with robust legal protections, further enhancing security against market volatility and operational risks.

  1. Tax Efficiency and Global Diversification

For entrepreneurs and families with cross-border activities, tax efficiency is crucial to achieving sustained wealth growth. Offshore structures can be invaluable tools for managing tax obligations. Jurisdictions like the Channel Islands, Cayman Islands, the British Virgin Islands, and Singapore offer tax benefits, such as low or zero corporate taxes, to companies registered within their borders. By leveraging such offshore jurisdictions, businesses can lower tax liabilities legally and redirect those funds toward growth initiatives.

Given the anticipated $84 trillion wealth transfer over the next two decades[2], HNWIs and families are increasingly seeking ways to retain more wealth across generations through structured, tax-efficient offshore vehicles. In recent years, private equity has become a favoured investment vehicle for entrepreneurs, with a significant number of new HNWIs utilising it for wealth diversification. This is especially true in emerging markets, where wealth creation through entrepreneurship has accelerated, notably in regions such as Asia and the Middle East​[3].

Offshore trusts and family foundations are popular for inheritance planning, helping families avoid estate and inheritance taxes, thereby preserving a larger share of wealth for heirs. Dynastic wealth preservation benefits similarly from these structures. Offshore trusts or private family foundations can provide tax-efficient solutions for wealth transfer and inheritance planning. Many jurisdictions allow families to avoid estate taxes or inheritance taxes, ensuring that a larger share of the family fortune is passed down to heirs without significant erosion from taxes. However, it’s essential to work with tax advisors to structure these vehicles in full compliance with international regulations and reporting standards, as tax authorities worldwide are increasingly scrutinising offshore holdings.

  1. Privacy and Confidentiality

High-net-worth (HNW) entrepreneurs and families often prioritise privacy. Offshore structures, especially trusts, foundations, and private investment companies, offer a degree of confidentiality, as they’re governed by jurisdictions with strong privacy laws. While global reporting requirements are increasing, according to the Economist Intelligence Unit, over 60% of HNW families still view jurisdictional diversification as crucial, enabling them to protect sensitive family wealth information from external scrutiny, political instability, or public exposure[4].

While financial transparency initiatives have increased global reporting requirements, some jurisdictions continue to offer robust protections that minimise public exposure of ownership and investment activities.

Privacy becomes even more significant when protecting dynastic wealth. With multiple generations and often complex familial dynamics involved, safeguarding the family’s financial footprint can help prevent external interference and unwanted scrutiny. By carefully selecting the jurisdiction, a family can benefit from an additional layer of confidentiality that helps protect family members from undue attention and potential security threats.

  1. Flexible Wealth Succession Planning

Offshore trusts or family foundations offer substantial flexibility for entrepreneurs planning wealth transfer across generations. Offshore trusts are particularly advantageous in enabling multigenerational planning, as assets can be managed according to the trust deed, protecting the family’s financial future even if the founder passes away. This ensures that wealth is managed professionally, without relying entirely on heirs, who may not yet possess the necessary experience. Foundations, meanwhile, are often structured with specific philanthropic goals, serving both the family’s financial needs and broader societal contributions. They can distribute wealth not only to direct heirs but also to charities, educational institutions, and community organisations. Through offshore foundations, families can integrate social responsibility into their legacy, offering heirs a model of value-driven wealth management.

  1. Mitigating Political and Economic Instability

In regions experiencing political instability or economic volatility, entrepreneurs and families with considerable wealth have to consider jurisdictional risk. Offshore structures enable diversification across countries with stable legal and economic frameworks, reducing exposure to potential government actions, currency devaluation, or restrictive capital controls. By holding assets in countries with stable governance and a favourable investment climate, families can ensure continuity and preserve wealth through periods of upheaval.

For families living in high-risk areas or those concerned with geopolitical risks, offshore structures offer a form of “wealth insurance.” With the support of offshore companies or trusts, assets remain accessible and protected in a secure, internationally respected jurisdiction.

Considerations for Using Offshore Structures

While offshore structures offer numerous benefits, it’s essential to approach them with a clear understanding of compliance requirements, transparency initiatives, and potential risks. International bodies, including the OECD and the Financial Action Task Force (FATF), have introduced guidelines and reporting requirements, such as the Common Reporting Standard (CRS), to ensure that offshore structures are used responsibly. Entrepreneurs and families must consult with legal and tax professionals to design structures that align with these frameworks.

Transparency is also critical. In an era where public opinion about offshore wealth structures is sensitive, it’s essential for families and entrepreneurs to employ these tools with integrity. Responsible and compliant use of offshore structures, paired with transparent reporting and an emphasis on ethical wealth management, helps protect not only the family’s wealth but also its reputation.

Creating long-term dynastic wealth and legacy

Offshore structures, when used responsibly and in compliance with global regulations, are potent tools for supporting entrepreneurial ventures and preserving dynastic wealth. By offering asset protection, tax efficiency, privacy, and strategic flexibility, these structures enable families and entrepreneurs to navigate complex financial landscapes while securing their legacies for generations.

For entrepreneurs seeking scalable solutions to expand their businesses globally, and for families committed to a long-term approach to wealth, offshore structures can provide unmatched benefits. As with any powerful tool, the key lies in informed, ethical use—working with trusted advisors to build a structure that is both robust and resilient in today’s evolving financial world. With the right foundation, entrepreneurs and families can ensure that their wealth not only endures but also continues to grow and make a positive impact for generations to come.

Entrepreneurship offers HNWIs a path to long-term dynastic wealth and legacy creation, but it isn’t without its challenges. By leveraging expert private wealth services, entrepreneurs can navigate the complexities of financial management, allowing them to focus on innovating and building successful businesses.

At Belasko, we’re dedicated to supporting the next generation of entrepreneurs in their journey toward sustainable success, ensuring their hard work and vision translates into enduring wealth for future generations.

Get in touch with Andy Bailey ([email protected]) if you would like to discover more.

–

[1] https://screenandreveal.com/entrepreneurship-statistics/

[2] https://ifamagazine.com/global-hnw-population-wealth-back-to-record-levels-despite-global-instability-finds-capgemini/

[3] https://www.visualcapitalist.com/wp-content/uploads/2023/10/gwr-2023-en-2-1.pdf

[4] https://atlas-offshore.world/

Preparing the next generation and managing the Great Wealth Transfer

Written by

As the world prepares for the largest transfer of wealth in history, we are entering the era of the ‘Great Wealth Transfer’, with an estimated $84 trillion expected to pass from baby boomers to the next generation over the coming decades. This shift signals a profound opportunity, but also unprecedented challenges for heirs, many of whom may feel unprepared to manage the complexities of inherited wealth. The scale of this transfer has been accelerated by recent crises, including the pandemic and rising global inequalities[1], further underscoring the need for strategic succession planning.

For heirs receiving significant assets, the responsibility of managing and growing their wealth presents both opportunities and obstacles. According to a report by Cerulli Associates, nearly 45% of high-net-worth individuals (HNWIs) are concerned about their heirs’ ability to manage their inherited wealth effectively. The complexities of wealth management are evolving, and the next generation must be equipped not just with financial literacy but also with the tools and support to navigate a rapidly changing landscape.

The growing need for succession planning

Succession planning is crucial for ensuring the continuity and preservation of family wealth. But this shift in wealth also risks creating a “wealth divide,”[2] as only families with proper planning and access to sophisticated advisors will likely navigate the challenges successfully. Effective succession planning goes beyond just transferring assets—it’s about preparing heirs for the responsibilities they will inherit. The UBS Global Wealth Management study found that 54% of wealthy families lack a comprehensive succession plan, exposing them to potential disputes, tax inefficiencies, and the risk of mismanagement.

The ‘Great Wealth Transfer’ brings a new focus on preparing future generations for the stewardship of family wealth. Private wealth providers play a pivotal role in this process, offering expertise and guidance to help families create robust plans that encompass more than just financial assets. At Belasko, we understand that a successful transition requires both strategic planning and a deep understanding of family dynamics.

Challenges facing the next generation

The next generation of wealth holders faces unique challenges that differ significantly from those encountered by their predecessors:

  1. Complexity of financial markets: Today’s globalised and volatile financial markets require a sophisticated understanding of various asset classes, including equities, bonds, real estate, and alternative investments. Heirs need to navigate not just traditional markets but also emerging asset classes like cryptocurrencies, all while managing broader macroeconomic risks such as inflation and interest rate volatility.
  2. Maintaining family unity: Family dynamics can complicate financial decisions, especially when multiple stakeholders are involved. A lack of clear communication or differing visions for the future can lead to conflicts that jeopardise the preservation of inherited wealth. The FT article pointed out that such tensions can be exacerbated by generational differences in priorities and expectations regarding the use of family wealth.
  3. Navigating tax and regulatory environments: As regulations evolve and become more complex, heirs must be aware of tax implications and compliance requirements. A study by Wealth-X found that nearly 30% of global wealth could be eroded by taxes if not properly managed, underscoring the importance of informed financial planning.

Preparing for the future

As the next generation takes on the mantle of managing inherited wealth, it is essential that they are well-prepared to handle both the opportunities and challenges that come with this responsibility. The ‘Great Wealth Transfer’ is not just a financial event; it represents an opportunity for families to redefine their legacies and strengthen their long-term impact. By prioritising education, strategic planning, and strong governance, families can ensure that their wealth is preserved and grows for generations to come.

With the right support, the next generation can build on the foundations laid by their predecessors and it’s evident that there is a  need for families to have trusted advisors who can provide comprehensive guidance on wealth management, taxation, and family governance. This level of planning can safeguard a family’s wealth for generations to come.

And, working with experienced private wealth providers, like Belasko, can help ensure that heirs receive the guidance and support they need to succeed.

Belasko offer a range of services tailored to the unique needs of wealthy families, helping the next generation navigate the complexities of managing inherited wealth. Our approach can support families with anything from education and empowerment, to strategic planning, to trust and company administration.

By partnering with us, families can confidently face the future, knowing they have the expertise and support needed to navigate the complexities of succession planning with ease. Get in touch with our expert team to discover more.

The scale of the ‘Great Wealth Transfer’ means that thoughtful planning is no longer an option—it’s a necessity. If you’d like to understand how we can help ensure your family’s wealth endures for generations to come, get in touch with Andy Bailey ([email protected]) to discover more.

 

[1] https://www.ft.com/content/dc565eac-2b18-47f8-8378-8818ac9c3eae?accessToken=zwAGJAr2cjKAkdPcVl6sKxhH-NODeIgYrJw-rg.MEUCIQCMUihxVWNyD-YJHLlKeiLwG4KWYrqyK7CcC1bvEzPnBAIgNAWp-A9KBS6fCmU43taPk-pmDyv9Kf2XnDEV9S_KyfQ&sharetype=gift&token=338c9ff8-3260-43cf-bc8e-b14c8b1979c5

[2] Same as above

Strategic philanthropy: enhancing impact through private wealth providers

Written by

In today’s complex financial landscape, philanthropy is becoming an essential component of wealth management for high-net-worth individuals (HNWIs). By integrating philanthropic goals with financial planning, individuals can make a significant social impact while strategically managing their wealth. However, navigating the intricacies of charitable giving requires expertise and guidance, making the role of a private wealth provider increasingly vital.

The growing importance of philanthropy in wealth management

Philanthropy is not just about donating money; it’s about creating a sustainable impact that aligns with personal values and long-term financial goals. According to a 2023 report by the Charitable Giving Foundation, charitable contributions from HNWIs have increased by 12% over the past five years, indicating a growing trend towards philanthropic engagement among the wealthy. A 2022 study by UBS found that 72% of HNWIs consider philanthropy an integral part of their wealth management strategy, reflecting a shift in mindset toward more purposeful giving. As the desire to give back grows, so does the need for professional support in navigating the complexities of charitable activities.

Additionally, the Global Wealth Report highlights that the number of family foundations has increased by 60% over the past decade, underscoring a trend towards structured philanthropic giving. These statistics show that more individuals are not only looking to donate but are also interested in creating long-lasting, impactful legacies through their wealth. This growing importance of philanthropy in private wealth management necessitates the expertise of a third-party private wealth provider to ensure that charitable goals are achieved effectively and strategically.

Integrating charitable goals into wealth management

While the benefits of philanthropy are clear, HNWIs often face several challenges in integrating charitable giving into their wealth management plans:

Complexity in aligning philanthropic goals with financial strategies

Crafting a philanthropic strategy that aligns with personal values and financial goals requires careful planning and expertise. Many high net worths struggle to balance their desire to give back with the need to maintain financial stability and growth. Partnering with an expert provider can provide expertise in crafting bespoke giving plans that maximise impact while optimising tax benefits.

Regulatory and compliance challenges

Different jurisdictions have varying rules on charitable giving, making it difficult to ensure compliance across borders. This complexity can deter HNWIs from engaging in philanthropic activities or lead to unintentional non-compliance. A private wealth provider ensures that all philanthropic activities comply with relevant laws and regulations, minimising risks and enhancing the efficiency of charitable contributions.

Effective impact measurement

Determining the effectiveness of charitable contributions is often challenging. HNWIs need to ensure that their donations are making a meaningful difference and align with their philanthropic goals. Expert providers like Belasko can offer robust tools for impact measurement and reporting, allowing clients to assess the effectiveness of their philanthropy and adjust strategies as needed.

Family involvement and governance

Engaging multiple family members in philanthropic activities can be both rewarding and challenging. Clear communication and governance structures are needed to ensure alignment and avoid conflicts.

The role of a private wealth provider in philanthropy

A structured approach to philanthropy is crucial when integrating charitable goals into your wealth management. This can be effectively managed with the support of an expert, reputable private wealth provider. From establishing charitable foundations to ensuring compliance with tax regulations, they can offer tailored solutions that address the unique challenges faced by ultra and high net worth individuals in their philanthropic endeavours.

Working with a partner like Belasko

At Belasko, we offer a comprehensive suite of private wealth services tailored to the unique needs of HNWIs, from strategic planning to compliance support and impact measurement.

We help ensure that your philanthropic efforts are impactful, sustainable, and aligned with your broader wealth management strategy.

For more insights on how to incorporate philanthropy into your wealth management plan, get in touch with Andy Bailey ([email protected]) and find out how we can help you maximise the impact of your charitable giving and achieve your philanthropic goals with confidence.

Seizing opportunities amid uncertainty: insights from the Jersey Finance Private Wealth Conference

Written by

This year’s Jersey Finance Private Wealth Conference in London was themed “Beyond the Permacrisis: Taking Advantage of Change and Opportunity.” The event offered thought-provoking sessions and engaging networking opportunities, with insights that are invaluable for navigating the current landscape. James Michel, Director in Private Wealth, summarises the key themes covered at the event.

Geopolitics and the new world order

Keynote speaker Tim Marshall set the tone with a captivating presentation on the “multipolar world” we now live in, emphasizing the role of geography in shaping global politics. He also touched on the modern “space race” and left the audience with a powerful reflection, quoting, “there is nothing new under the sun,” suggesting that history often repeats itself, but with greater understanding each time. During an interactive Q&A, Marshall shared his prediction that Argentina could emerge as a major player in the next 20 years, sparking conversations about future growth regions.

Strategic wealth management in a volatile world: key panel insights

The panel discussions centred around how private investors and families can successfully navigate a world marked by geopolitical volatility.

  • Strategic investing in turbulent times: The panellists emphasised the importance of thinking strategically about investing amidst geopolitical risk. Collaboration among advisers is critical to understanding and navigating economic cycles, which, as mentioned, can last up to 30 years.
  • Global families and wealth management: As clients become increasingly multi-jurisdictional, wealth advisers must adapt to the complexities of managing assets and family affairs across borders. The rise in global mobility has resulted in families maintaining multiple residences, businesses, and investments in different jurisdictions, each with its own legal, regulatory, and tax implications. This shift demands greater flexibility in wealth structuring, as traditional approaches often fall short in accommodating the modern, borderless lifestyle of high-net-worth individuals.

    Advisers must craft bespoke solutions that not only address the diverse requirements of these global families but also account for evolving regulations and geopolitical uncertainties. This includes managing cross-border tax compliance, mitigating risks associated with different legal systems, and ensuring a seamless transfer of wealth across generations. Additionally, there is an increasing focus on the professionalisation of wealth management, as family offices look for more sophisticated governance models, operational efficiency, and a broader suite of services to support their global aspirations.

    With a growing demand for holistic, internationally adaptable strategies, wealth advisers must collaborate more closely with global legal, tax, and financial experts to ensure that structures are robust, future-proof, and responsive to the dynamic needs of modern global families.

  • Philanthropy at the forefront: Philanthropy is increasingly important to high-net-worth families, particularly in regions like the GCC, where philanthropic donations are estimated at $210 billion annually. This shift represents a significant change from tax being the primary driver of wealth management conversations in the past.
  • Embracing change and technology: Technology was a major theme, with AI and fintech emerging as transformative forces within the wealth sector. While there is still misinformation surrounding AI, it was acknowledged that AI is here to stay and offers significant efficiencies. However, governance and regulation will be essential in mitigating its risks. Although there was some debate that AI could erode jobs, most panellists agreed it is more about reshaping how we work and integrating AI tools into our day-to-day processes, not replacing human talent.

Looking ahead: opportunities for family offices

The conference concluded with a dynamic Q&A session discussing how jurisdictions can attract family offices—entities set up by high-net-worth families to manage their wealth. A key theme was the “ease of doing business,” encompassing streamlined regulatory frameworks, tax incentives, and administrative efficiency. Family offices seek jurisdictions that offer straightforward processes, allowing them to focus on strategic planning rather than compliance burdens.

The panelists also emphasised the importance of stability and predictability in governance, with family offices favouring locations known for political and economic security. Furthermore, jurisdictions must embrace innovation and provide access to advanced fintech and bespoke services that cater to the unique needs of family offices, including impact investing and philanthropy advisory.

Overall, the Jersey Finance Private Wealth Conference offered valuable insights into the challenges and opportunities presented by today’s global landscape. From navigating geopolitical risks to embracing the AI revolution, the event highlighted the importance of strategic thinking and adaptation for the future of wealth management.

At Belasko, our private wealth services are designed to protect, grow, and transition wealth while navigating complex legal and regulatory environments. We offer tailored solutions across four key pillars: philanthropy, next generation, entrepreneurship, and sustainable investing. If you’re interested in exploring our private wealth services in Jersey, please reach out to James Michel ([email protected]).

Transferring a trust to a new trustee: A strategic option for HNWIs

Written by

An essential wealth transfer tool for any high net worth family is ensuring the effective management of a family trust, preserving your legacy, and ensuring that future generations benefit from your foresight. However, there may come a time when the trustee originally appointed is no longer the best fit for your evolving wealth management needs. Transferring a trust to a new trustee can be an efficient and strategic move to ensure that your assets are managed in line with your objectives.

In this article, Andy Bailey, Head of Private Wealth, explores why and how to transfer a trust to a new trustee, the benefits it offers, and what high net worth individuals (HNWIs) should consider throughout the process.

Why transfer a trust to a new trustee?

Trusteeship is an integral part of managing complex wealth, and while trustees are bound by a fiduciary duty to act in the best interests of the beneficiaries, circumstances often change. Whether due to shifting financial goals, personal relationships, or the evolving complexity of wealth management, HNWIs may find it beneficial to appoint a new trustee. Here are some common reasons:

  • Sophistication and expertise in asset management

HNWIs often have diverse portfolios that include not only liquid assets like stocks and bonds but also real estate, private equity, art collections, or even family businesses. The expertise required to manage these assets effectively can be highly specialised. If the current trustee lacks the necessary skills or experience, especially in global investments or niche assets, it may be time to seek out a trustee with more appropriate expertise.

  • Better personal service and engagement

Trustees are not just financial managers; they play a significant role in stewarding wealth for future generations. For HNWIs, having a trustee who understands their unique financial goals and family dynamics is critical. If the current trustee lacks responsiveness moving to a trustee who provides a more personalised, high-touch service can lead to greater satisfaction and trust in the management of the assets.

  • Jurisdictional and regulatory advantages

With the global mobility of HNWIs, you or your beneficiaries may have moved to a new country with different tax laws and regulatory frameworks. Transferring your trust to a trustee who understands jurisdictional obligations when it comes to tax and regulation and can help simplify compliance with local laws can be hugely advantageous.

  • Changing family or business circumstances

As families grow and their financial needs evolve, trustees must adapt to new circumstances. If your family has expanded or there are new business ventures to consider, the existing trustee may no longer be the best fit. A trustee with experience in intergenerational wealth transfer or managing family-owned businesses might offer better solutions for your family’s evolving financial landscape.

  • Market consolidation and continuity concerns

The trust market is seeing significant consolidation, with many trustees being acquired by larger firms, leading to disruptions in service quality and a loss of personal relationships. For HNWIs seeking stability and consistent service, moving to a trustee that is independently/family-owned can provide long-term continuity and a more personalised relationship management approach. These trustees often have a vested interest in maintaining strong, lasting client relationships.

The process of transferring a trust is easier than expected

For HNWIs, the prospect of transferring a trust may seem like a complex endeavour, but the process can be straightforward, especially with the right advisors. Here’s how it generally works:

  1. Review the trust deed and legal requirements: Consult the trust deed to understand the terms governing trustee replacement. Most trust deeds include provisions that outline the process for appointing a new trustee. Some may require the consent of beneficiaries or a protector, while others may provide broad discretion to the settlor.
  2. Consult advisors and stakeholders: Before making any decisions, it is essential to consult with your legal, tax, and financial advisors. They will help assess any potential legal or tax implications of moving the trust to a new trustee, particularly if the transfer involves cross-border assets or multi-jurisdictional considerations.
  3. Appointing the new trustee: Choosing a new trustee is arguably the most important step. For HNWIs, the decision should be based on a trustee’s ability to manage complex asset structures, their understanding of global markets, and their approach to family governance and succession planning. Boutique trust companies are often preferred by wealthy individuals because they offer a higher level of service and a bespoke approach.
  4. Prepare the legal documentation: Once the new trustee has been selected, a Deed of Retirement and Appointment will need to be drafted to formalise the transition. This document specifies the outgoing trustee’s resignation and the appointment of the new trustee. Your legal advisors will ensure that all documentation is in order and compliant with the trust deed and local laws.
  5. Transferring assets: Transferring the trust’s assets to the new trustee may require coordination with financial institutions, asset managers, or other parties to ensure a seamless transfer. Additional steps may be required if assets are in different jurisdictions to comply with local laws or regulations.

Key considerations for High Net Worth Individuals

As with any significant financial decision, there are several important factors to keep in mind when considering a transfer of trusteeship:

  • Legal and tax implications: A transfer can trigger tax liabilities, especially in cross-border cases, so consult tax professionals to plan accordingly.
  • Trustee reputation: Ensure the new trustee has the expertise and reliability to manage large estates as well as a consistent and responsive approach to relationship management.
  • Long-term flexibility and stability: You want a trustee who can evolve with your financial and family circumstances over time. Choose a trustee who can adapt to changing circumstances and family dynamics and have a solid ownership structure behind them.
  • Costs of the transfer: Weigh legal fees and transfer costs against the long-term benefits of appointing a more capable trustee. At Belasko, we can make the transition seamless, fill any gaps you’re experiencing with your existing trustee, at a competitive cost.

A strategic move for wealth preservation

For high-net-worth individuals, transferring a trust to a new trustee can be a strategic decision that enhances the management and protection of wealth. Whether you are seeking better expertise, more personalised service, or a trustee with jurisdictional reach, the process of transferring trusteeship is easier than many might think.

As an independently owned business, our private wealth team are reliable, experienced and provide continuity and longevity in building relationships. Our bespoke private wealth solutions draw on the many years’ experience of managing the needs of HNWIs. We collaborate with your advisors, act as professional trustees, and ensure effective management and administration of the trust. We can ensure a seamless and smooth transition of your trust, at a minimal cost, which will also be a valuable step toward safeguarding your legacy for generations to come.

If you’d like to discuss transferring your trust, get in touch with Andy Bailey ([email protected]).

Embracing Finovation: Key Takeaways

Written by

Last week, Andy Bailey, our head of private wealth, attended the ‘Finovation: The Guernsey Edge’ conference, hosted by the Guernsey Financial Services Commission and Guernsey Finance. The conference focused on how Guernsey’s financial sector can leverage its agility, strong legal framework, and forward-thinking regulation to embrace emerging technologies and drive growth.

Below Andy highlights his key takeaways from the event.

  • Harnessing technology for growth: Guernsey’s financial services sector is positioned to benefit from technological advancements, including AI and quantum computing. These technologies offer potential improvements in efficiency, risk modelling, and fraud detection, and are seen as critical for maintaining Guernsey’s status as a leading international finance centre.
  • Mitigating cyber risks: Speakers stressed the importance of addressing cyber risks in the financial sector. They highlighted the need for robust cyber risk management and regulatory compliance to protect against breaches and ensure financial crime controls are effective.
  • Regulatory innovations and openness: The Guernsey Financial Services Commission (GFSC) gave a sneak peak in to their soon-to-be-introduced new authorisations portal. This portal will digitalise and streamline processes whilst offering more visibility which will fundamentally make Guernsey an even more attractive place, with a much easier process, for those wanting to do business in the island.
  • FinTech vs. traditional banking: While FinTech solutions are reshaping the banking landscape, there were discussions around the potential risks for individuals and organisations. Concerns include the reliability and security of digital-only platforms compared to traditional banks who offer stability and reassurance, as well as regulatory clarity and the longevity of FinTech providers. The private wealth sector particularly are still a way off utilising FinTech banking solutions as they need to carefully weigh the benefits of innovation against safely securing their wealth without any risks.
  • Openness to innovation in Guernsey: Panellists Alexis Augier, CEO at Vega, and Matt Ong, Founder and CEO at Ctrl Alt, praised Guernsey’s openness to cutting-edge financial innovations, including fund administration and structures like Private Investment Funds and Protected Cell Companies. They recognised that with tokenisation comes a lot of scepticism and unclarity but, with the GFSC’s clear guidance on tokenisation, businesses can benefit from better speed to market and cost-effectiveness when looking to innovate.

The ‘Finovation: The Guernsey Edge’ conference provided invaluable insights into the future of Guernsey’s financial services sector, highlighting the island’s strong position to benefit from emerging technologies. From AI and quantum computing to innovative regulatory practices, Guernsey is well-equipped to navigate the challenges and opportunities presented by the rapidly evolving financial landscape.

With the GFSC’s openness to innovation and proactive stance on regulation, the island remains a competitive and attractive hub for businesses looking to capitalise on technological advancements. Guernsey’s agility and commitment to embracing innovation are critical to maintaining its status as a leading international finance centre.

If you’d like to discuss innovative solutions within private wealth, get in touch with Andy Bailey ([email protected]).

Navigating New Waters: Impacts of UK Government’s Non-Dom Tax Reform

Written by

As the UK navigates changes in the non-dom tax regime, the new Labour government under the Treasury’s leadership is set to introduce several strategic updates. These updates are part of a broader effort to align the UK’s tax system more closely with international standards and maintaining stability.

The government will finalise policies in the upcoming Budget (30th Oct) but here we highlight some of the key proposed updates to the UK taxation for non-dom individuals that should be considered carefully[1].

Foreign Income and Gains (FIG)

  • Current system: Non-domiciled individuals in the UK are currently taxed on a remittance basis, meaning you are only UK taxed on income and gains remitted to the UK.
  • Proposed new system (from 6 April 2025): A shift to an internationally competitive residence-based system will be introduced meaning all worldwide income and gains will be subject to UK tax. However, a four-year relief period will be granted to new arrivals to ease the transition.

This change provides non-doms with a limited-time opportunity to remit foreign income and gains to the UK at a more favourable rate (12%), encouraging the reinvestment of global wealth into the domestic economy.

Inheritance Tax (IHT) rules based on residence

  • Current system: IHT is determined by domicile status, with UK-domiciled individuals liable for IHT on worldwide assets and non-dom individuals liable for IHT on UK assets only.
  • Proposed new system (from 6 April 2025): IHT liability will be based on residence rather than domicile. A new provision extends the scope of IHT to non-doms who have moved abroad, applying a 10-year window of liability. This measure ensures continued fiscal responsibility for those with substantial ties to the UK, even after they have relocated.

Trusts and Non-UK Assets

  • Current system: Under current rules, UK non-doms can establish excluded property trusts to shelter non-UK situs assets from UK IHT. These trusts have provided a means of protecting assets from IHT, thus serving as an essential tool for estate planning and asset protection.
  • Proposed new system: The Treasury has indicated potential grandfathering provisions for existing excluded property trusts. This potenitially means that trusts established before a specific date could retain their excluded property status, thereby exempting non-UK situs assets from IHT[2].

Settlor-Interested Trusts

  • Current system: These trusts often offer tax advantages to non-domiciled individuals.
  • Proposed new system: The preferential tax treatment for settlor-interested trusts will be gradually phased out, potentially leading to further tax obligations for settlors.

Strategic considerations for HNWIs and UHNWIs

With these updates, it’s crucial for non-domiciled HNWIs and UHNWIs to engage proactively with their advisors to navigate the evolving tax landscape and future proof wealth planning.

While the new government maintains continuity in many aspects of the non-dom tax regime, the introduction of specific measures marks a decisive shift towards a more inclusive and accountable tax system. Non-doms, particularly HNWIs and UHNWIs, must remain vigilant and informed to effectively manage their tax obligations and financial planning strategies.

Belasko’s proactive scenario-based analysis

At Belasko, we’re already proactively supporting our clients with scenario-based analysis to ensure they’re prepared and ready for any potential taxation impacts that will be put in place after the 30th October.

The scenario planning includes the mapping and analysis of a client’s investment universe, stress testing them against the potential changes that could be implemented by the UK government. This provides our clients with intuitive, cost-benefit analytics upon which families and their advisers can make informed decisions.

We’re experienced when it comes to optimising wealth across jurisdictions and generations and are ahead of the curve when it comes to navigating potential new tax and regulatory barriers.

Our private client directors all have 20+ years of extensive experience, leading a frontline administration and accounting service delivery team. We hold strong relationships with leading legal and tax advisors and deliver tailored solutions, while being truly dedicated to delivering client service excellence.

If you’d like to discuss how we can help you navigate new waters as a result of the new UK government, get in touch with Andy Bailey ([email protected]).

[1] https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary/changes-to-the-taxation-of-non-uk-domiciled-individuals#:~:text=The%20government%20envisages%20that%20the,scope%20for%2010%20years%20after

[2] https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary/changes-to-the-taxation-of-non-uk-domiciled-individuals#:~:text=The%20government%20envisages%20that%20the,scope%20for%2010%20years%20after

Maximising Wealth Management: The Advantages of Using the Channel Islands for Private Trust Companies

Written by

Recent legislative changes have made private trust companies (PTCs) in Jersey and Guernsey increasingly attractive and easier to establish. PTCs are particularly appealing to families who appreciate the use and flexibility of trusts but prefer to retain more clearly defined powers. These powers can be exercised by the board of directors of the PTC, rather than relying on individual or institutional trustees with whom they may not have had a prior relationship.

PTCs have become increasingly popular among high-net-worth private clients as they often prefer to establish their own PTC to act as the trustee of their family trusts, rather than transferring assets to an offshore professional trustee company. Andy Bailey, Belasko’s head of private wealth, explores the advantages and potential issues of utilising Jersey and Guernsey as hubs for PTCs.

  1. Control: Trustees must act in accordance with the terms of the trust deed and comply with governing legislation. Often, trustees have wide discretionary powers in the administration of trust assets. Typically, the trustee is a professional corporate entity, potentially remote from the family. A PTC enables family members or trusted advisers to participate directly by sitting on the board or as consultants and advisers. This structure allows the family to retain greater influence over the management of trusts through the PTC than they might otherwise have.
  2. Transferability: Having a PTC as the trustee of family trusts avoids the need for future changes of trusteeship. Instead, only the management agreement between the PTC and the licensed administrator needs to be terminated and a new agreement entered into with a new licensed administrator. The previous licensed administrator’s PTC directors (if any) would then cease to be on the board of the PTC.
  3. Confidentiality: Ownership of the PTC structure can remain confidential when structured with the use of, for example, a purpose trust. This level of confidentiality is particularly appealing to HNWIs and families seeking discretion in their financial affairs.
  4. Trustee Liability: Professional trustees are always aware of their liability and the risk of being sued by beneficiaries or third parties. As a result, they are often reluctant to take ownership of assets or participate in ventures with substantial risks. PTCs, due to the composition of their boards, can provide for riskier investments to be included in the structure, offering greater flexibility and opportunity.
  5. Philanthropy: PTCs can make confidential philanthropic payments while ensuring the person managing the structure understands the thought process behind supporting such causes. This ability allows families to support charitable initiatives discreetly and effectively.
  6. Flexibility: A PTC is likely to be more flexible and quicker in dealing with trust assets. The direct involvement of family members or trusted advisers can expedite decision-making processes and adapt more readily to changing circumstances.
  7. Legal and Regulatory Framework: Both Jersey and Guernsey boast well-developed legal systems and stringent regulatory frameworks providing familiarity and reliability for trust structures. In addition, the trust laws in the Channel Islands are among the most advanced globally. They allow for a variety of trust structures, including discretionary trusts, reserved power trusts, and purpose trusts. This flexibility enables the tailoring of trusts to meet specific needs, whether for succession planning, asset protection, or charitable purposes.
Potential Issues
  • Management and Control: The residency of a trust typically depends on where it’s administered and where the majority of trustees are resident. It’s crucial that the PTC isn’t considered resident in an unfavourable jurisdiction, as this could lead to the trusts being deemed resident there, resulting in adverse tax consequences. To avoid this, most of the directors should be in the jurisdiction where the PTC has its registered office. Additionally, directors must properly discharge their duties, understand their roles, actively participate in meetings, and be aware of the company’s business.
  • The Sham Argument: To prevent the structure from being attacked as a sham, there must be clear evidence that the settlor and the PTC intended to establish a legitimate trust structure. This structure should be managed as such, with proper documentation and administration. Using a licensed administrator to oversee the general administration of the PTC and its underlying trusts can help mitigate the risk of a sham accusation.
  • Liability of Directors: Directors of PTCs have a duty to act in the best interests of the company. If they breach this duty, the general rule is that their obligations are owed to the company, not the shareholders. Consequently, the company would need to take action against the directors.

Jersey and Guernsey are growing in popularity as strategic locations for establishing and managing PTCs. Both jurisdictions offer an unparalleled environment, for high-net-worth individuals and families, that supports the growth, protection, and smooth transfer of wealth across generations.

At Belasko, our team provides the professional, personalised support that’s needed to manage the needs of HNWIs, families and entrepreneurs. Drawing on many years’ experience, we offer tech-driven, optimised wealth solutions across a range of jurisdictions and generations. If you’d like to learn more about how we can help with establishing a PTC in the Channel Islands, get in touch with Andy Bailey at [email protected].