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Jersey Finance launches new succession planning report

12/09/2018 News Team

Jersey Finance has launched its latest private wealth thought-leadership report written in partnership with offshore law firm Bedell Cristin.

The Flourishing Futures: Making Succession a Success report sets out to address the challenges arising from the intergenerational transfer of wealth, dubbed by economists and financial observers as the ‘Great Wealth Transfer’. 

The report, focuses on succession planning and how existing trust structures, established 30 years ago and more, might be affected by the next generation of beneficiaries.

Using real-life examples from Jersey’s wealth sector and insights from Bedell Cristin international private client partner, Edward Bennett, the report recommends proactive actions trustees and fiduciary service providers can take in anticipation of the increasing influence of the next generation. 

Recommended steps from the report include: 

- Prepare a summary of the trust structure which explains the terms of the trust in detail.

- Initiate meetings with the next generation to discuss the trust. 

- Consider how existing structures meet the wishes of the next generation or whether it might be appropriate to establish new structures supporting philanthropic causes. 

- Ensure communication is carried out in a suitable manner.

Mr Bennett said: “It’s vital trustees and other fiduciary service providers are ready to meet the demands of the next generation. 

“We’ve identified key differentiators between the founder generation and next generation to provide context for trustees and advisors on the situations they may also face in future. 

“Next generation families tend, for example, to spread their wings further geographically, and are more likely to include step-children and long-term but unmarried relationships, whilst not all family members will share the same personal, commercial or philanthropic goals.  

“In addition, those families are much more comfortable with technology - accessing information and communicating digitally, transacting online, managing their finances via apps, or being more open to fintech investment options.”

Geoff Cook, chief executive of Jersey Finance, added: “It is clear there will need to be a certain amount of change and evolution within the global private wealth industry as a result of the Great Wealth Transfer. The indications are that the social, cultural and technological trends shaping the global wealth management sector are giving forward-thinking private wealth professionals a real opportunity to support families with the transfer of inter-generational wealth.”

The report is available to download on the Jersey Finance website.

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