Insights
By: Wayne Elliott
Balancing strategic guidance and expert administration
Wayne is a Partner in our Family Office Division in Neuchâtel. He serves as the trust director for a number of high net worth international families. Here he shares the importance of building trust across generations, the evolving role of trustees and the importance of providing a differentiated service offering in Switzerland and Liechtenstein.
Trustees need to balance the wishes of beneficiaries and responsibility to protect their assets. Expert administration is a prerequisite for trustees, but providing strategic guidance requires building trust and relationships with families through regular meetings and genuine interest. Trustees must know the families well to provide effective guidance without appearing condescending or patronising. The ability to challenge and guide families is a key differentiator between good trustees and those who merely rubber-stamp decisions.
As trustees, we notice a shift towards a greater focus on the transfer of intergenerational wealth. The transfer of wealth or responsibility to younger generations can create challenges when different perspectives and sentiments surface. Although our fundamental role as custodians of family wealth remains unchanged, trustees are increasingly required to balance the differing views within a family on investments, ethics, and charitable giving, while acting in the best interests of beneficiaries as a whole.
With global diversification and mobility, cross-border tax issues are inevitable. Despite efforts by the OECD to harmonise taxation, countries are keen to maximise tax revenue, leading to increased complexity in navigating the interplay between jurisdictions. Some of the more common cross-border tax issues we see involve structuring investments and activities to avoid inadvertently triggering unknown tax obligations in jurisdictions where beneficiaries have little connection.
Our teams in Switzerland and Liechtenstein are focused providing a comprehensive service. With a range of advisers under one roof, we understand the importance of demonstrating value and effectively addressing clients' needs. There is a huge emphasis on building trust and relationships with families to provide effective strategic guidance and mitigate the risks around intergenerational planning.