Seeking security in a time of uncertainty- IQ-EQ’s Guide to Trusts and Foundations
‘Unprecedented’, ‘Uncertainty’ and ‘Unpredictability’- all defined the year that was 2020. A time of great political, social and economic upheaval often prompts a time of great introspection, and the last year has certainly given rise to increased reflection around the precariousness of life and mortality, as well as how to protect wealth for future generations.
Our world is transforming at a rate never seen before in history. Whilst COVID-19 has undeniably changed how we live forever, we’ve also seen an influx of change across the social and political sphere- a new Biden era, Brexit, the growing climate emergency, as well as rapidly advancing technology- our futures are being rewritten at an unprecedented pace.
Perhaps unsurprisingly then, this precariousness has led to an uptake in interest in trusts and foundations for asset preservation. As UHNW families take a renewed look at their estate planning, there is an increased demand for a tried-and-tested approach, with advanced alternatives.
Trusts and foundations can offer just that. With a long history of wealth preservation (trusts and foundations have been around since the 12th century), trusts and foundations naturally lend themselves as a source of dependability and security. Whilst historic, the industry has also demonstrated tremendous adaptability to keep pace with the rapid acceleration of global wealth, consistently evolving to meet the needs of the modern UHNW family.
This then, makes trusts and foundations an appealing offering for many UHNW families looking to protect their wealth against future instability. People want a straightforward yet sophisticated solution to preserve their estate, one that is also adaptable to future shocks.
Whilst UHNW families are increasingly looking towards trusts and foundations as a solution, they are not without limitations, however. Cross-border family members, as well as exposure to an increasingly complex array of regulatory, tax and inheritance regimes, leave families with tough choices to make when it comes to succession planning.
Given a tumultuous last year, we felt that now was the right moment to take a closer look at the use of trusts and foundations- particularly as we move through this critical transitional period.
This week IQ-EQ launches our Guide to Trusts & Foundations, which delves into the current state of the use of trust and foundations by the world’s wealthy. In addition to our own decades of experience in this space, we also take insight from the most reputable jurisdictions worldwide to shape a critical discussion around the current trends sweeping the sector, as well as debate how the sector is set to evolve in the coming decades.