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Succession planning & family governance

Succession planning & family governance

Succession planning and family governance is a hugely important process for wealthy families with the fortunes and enduring success of families often depending upon it being done properly. In essence, successful succession planning concerns how you pass on your wealth, and to whom, so that you can leave a legacy that meets your aspirations, whether it be to future generations or philanthropic endeavours.

Estate planning must be robust enough to protect everyone’s interests, whilst being sufficiently flexible to adapt to an evolving tax and legal landscape and changing family circumstances. Family dynamics play a significant part in achieving that success.

Our award-winning Private Client team specialises in inheritance and estate planning for high net worth families. We are experienced in creating effective cross-border succession structures, whilst also understanding the psychological aspects of family succession. We get to the heart of the issues that matter to the families we work with and often act as mediators in managing family dynamics.

Succession can be achieved using a wide range of estate planning tools. This ranges from the fundamentals, making sure there are well-drafted wills in place, to options tailored to a particular family’s needs, like creating a family governance wealth structure that might include a family investment company, trusts or foundations, shareholders’ agreements, a family office and a family charter.

The process can involve difficult but meaningful conversations with family members, particularly over questions of how to separate control and benefit. Our experience enables us to manage these discussions tactfully, and to engage sensitively with different generations and family branches. Our ultimate aim is to help avoid future family disputes or inheritance claims and the benefits should be long lasting, enabling a family to flourish over the generations.

How we can help:

Wills

Making a will is a vital part of any estate planning exercise. An up-to-date will ensures that wealth is passed on in accordance with your (the testator’s) wishes and ensures your family members or wider network receive the gifts and shares of your estate that you wish to leave them.

At Forsters, our private client lawyers are experts in drafting and interpreting wills.

Our in-depth understanding of all aspects of UK taxation, enables us to advise you on the most effective use of tax reliefs such as inheritance tax and investment reliefs. This is complimented by our extensive experience in matters of international taxation.

Tax and succession laws differ vastly between jurisdictions. If you have assets and family members based around the world, it is essential to put in place a cross-border estate plan that is informed by how the laws of each relevant jurisdiction interact with each other. With strong connections to advisors across the globe we regularly co-ordinate advice to create a holistic international estate plan that is effective across all applicable jurisdictions.

We advise on the set up and running of appropriate holding and investment vehicles, such as trusts, family investment companies or family offices.

We advise on business succession and structuring the family business so that it may be passed on effectively in the future, and draw upon our significant experience in this area.

Family governance enables a family to organise their affairs so there is clarity about how their assets should pass and ensures there is a system in place to make collective decisions in relation to family assets. The framework, which is built around the family’s agreed principles, aims to facilitate open and constructive communication between family members and to support the family in resolving issues as they arise.

This can be addressed in a single document, such as a family charter between members that sets out the common goals or it can be reflected in a more complex series of steps including private trust company structures, family councils and advisory boards, shareholders’ agreements, articles of association and trust resolutions to document the principles.

We guide families through the whole family governance process, from the initial discussions to the drafting of legal documents required to hardwire the planning.

Key experience

Succession and tax

We advised a European family on the restructure of multiple private trust company structures with assets of circa $5billion USD for succession and tax purposes.

Governance framework

We advised an UHNW international family with assets across Asia, the Middle East, Africa, Europe and the US on the implementation of a governance framework within their wealth structure including reworking their family constitution, and co-ordinating a tax review across the relevant jurisdictions.

Trust restructuring

We advised on a once in a generation restructuring of a family’s trust structure holding several billion US dollars with interests across multiple jurisdictions.

Meet our team