Tackling fundamental questions to build a secure legacy

It has been called the greatest wealth transfer in history, with trillions of dollars due to pass to younger generations in the next decade.¹ Yet across advanced economies, alarmingly high numbers of older adults have not made a last will and testament. In the absence of such an estate plan, an undesirable legacy often unfolds in the form of space for conflict between the surviving heirs.

Proper wealth planning and the right structuring can, however, serve to bring a calm sense of order by reducing the potential for disputes to arise. Robust plans can allow benefactors to secure their legacies and set up heirs to put their stamp on the world. To this end, even the most optimistic individuals are well-advised to address their own mortality and confront the following fundamental questions.

In the event of my death or incapacity:

• Are my closest relatives adequately protected and informed?
• Who will manage my affairs?
• How will my assets be distributed?

These three questions, while unsettling and often complex to answer, should be thought through, discussed, and the answers documented. Doing so early will bring peace of mind, and revisiting the plans regularly ensures they truly reflect your changing views, wishes, and circumstances. The need to be prepared is only heightened for those with complex estates, significant responsibilities and dependencies, or a desire to leave a mark through a philanthropic legacy.

The requisite planning discussions take time, and even seemingly straightforward decisions can change over the course of one's life. Wealthy individuals and couples often realize they had underestimated the complexity of the task once embarking on the planning process.

In this context, wealth advisors with experience in navigating these difficult, oft-put-off conversations can offer a unique and informed perspective with multijurisdictional insights to address clients' fundamental questions. Those with a broad background, extending beyond legal expertise, can work with clients to moderate a conversation and put in place a plan that addresses their family goals and any philanthropic aspirations as well.

Indeed, not all wealthy individuals and couples wish to leave the entirety of their wealth to their heirs, subscribing to the Warren Buffett belief that: "I want to leave my children enough so that they can do anything, but not so much that they can do nothing."

Others do not have direct descendants to whom they wish to leave their estate. For such individuals, often the desire is to leave some or all of their estate to a charitable cause or organization close to their heart. In fact, between now and 2045, it is estimated that over USD 12 trillion will be left to philanthropic causes.²

For those with such intentions, these also need to be thought through and tested in life, to ensure the legacy they leave is indeed the legacy they wanted. The uncertainty prevalent in today’s world has, for many wealthy individuals, put a premium on making sure their assets are secure and accessible. This means large wealth owners should have a plan B, and a plan C. Wealth advisors with expertise and competencein wealth and estate planning, family governance and philanthropy can help clients build resilience – of location,liquidity and legal status – into robust structures, while at the same time supporting them to engage properlyin succession planning. By helping wealthy individuals to think through the key questions, they ensure thata plan for tomorrow is made today.

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