Wealth planning is described as the strategic process of accumulating, safeguarding, and tax-optimally transferring wealth to the next generation. It involves:

• Tax planning to ensure efficient tax management.
• Wealth protection to safeguard assets.
• Estate planning for orderly asset distribution.
• Business succession planning, integral for family-owned enterprises.

The Imperative of Advanced Wealth Planning

• Wealth planning has become increasingly critical due to the complexities arising from international lifestyles, diverse family structures, and global assets accumulated by wealthy families over the last decades.
• The text acknowledges the potential risks to wealth, including privacy concerns, government austerity measures, and the need for careful management of wealth across generations.
• It warns of the various situations that can jeopardize wealth, especially for larger families where threats may span multiple jurisdictions.
• Emphasizing the importance of structured, regulation-compliant wealth planning strategies, it suggests that these can mitigate risks to wealth.
• The active structuring of wealth is identified as crucial, highlighting the significant role of multi-family and single-family offices in this process.
• It concludes that the use of family office services is essential for affluent families to safeguard and manage their wealth effectively.

Three Generations and Your Wealth Has Vanished

It is stated that wealth is often generated by a single generation but can disappear within three generations if not properly planned for. Inheritance often leads to the dispersion of wealth across multiple individuals, reducing the assets per person. Taxes, such as wealth, estate, inheritance, and income tax, can significantly deplete family wealth. Regulatory, political, religious, and economic risks, along with instability, can also impact wealth. The text underscores the role of a good family office in minimizing these risks and protecting assets for future generations.

Potential Threats to Your Wealth

Various threats to family wealth include assets being frozen upon death, matrimonial disputes, or disputes over the division of the estate. Other concerns include the challenge of maintaining wealth during adverse political and economic climates, and ensuring control of the family governance remains within the family. The text advocates for the timely action of family offices in addressing these issues to protect the family's reputation and ensure the security of the family's assets. It emphasizes that while some issues might seem secondary, practical experience shows that early planning is crucial for addressing wealth planning challenges.

Components of Wealth Planning for Affluent Families

Wealth planning for affluent (international) families necessitates a structured approach, incorporating various elements:

• An International Business Company to act as a holding entity for the family business.
• A Trust for the secure transfer and safeguarding of assets for future generations.
• A Foundation dedicated to philanthropic endeavors and structured giving.
• Life Insurance Solutions to earmark and protect wealth for specific family members.
• A Professional Investor Fund for strategic and optimized investment management.
• Wills & Prenuptial Agreements to ensure assets are preserved and protected within the family structure, particularly in relation to marriage.

Bespoke Wealth Planning

A family office will integrate various wealth planning structures, not necessarily separately but in a cohesive manner to maximize benefits. Effective wealth creation and transfer might be enhanced through structuring within jurisdictions with favorable investment protection agreements. It's highlighted that the right wealth planning structure can provide additional benefits and protect wealth.

The wealth planning solutions should be advised and implemented after consulting with experts such as tax lawyers. Given the regulatory pressures and the scrutiny on assets, ensuring that wealth is structured in a tax and regulation-compliant manner is crucial to safeguarding it.

Multi-family Office Expertise

The text questions whether every multi-family office offers wealth planning services, emphasizing the importance of these offices having in-house expertise or working with highly qualified external experts. However, not all offices possess the necessary skills, making the implementation of high-quality and solid wealth planning solutions a complex and increasingly challenging task. 

For those not interested in wealth planning services, it may be more cost-effective to use a multi-family office without in-house wealth planning experts, as these services can be quite expensive.