The challenge
The client is a high-net-worth family based in the UK. They have been a client of IQ-EQ for over ten years and recently we have been supporting them prepare for the generational transfer of wealth. As the children grow older and become more acquainted with the family’s portfolio, they will be more involved in the review and decision-making processes of wealth stewardship. This is in line with the settlor’s wishes and expectations.
Our solutions
Ensuring efficiency throughout, our global Family Office support team provided the following: Set up a Private Trust Company (PTC) for the client in which we act as Trustees.
- The underlying assets consist of the UK operating Company, UK Real Estate and Investment Portfolios
- The client relationship manager (CRM) regularly discusses the risk profile, aims and strategic asset allocation of the investment portfolio with the investment consultant. The CRM then implements and reviews the agreed investment strategy
- Working together with the investment consultants, the directors of the Jersey PTC and the older members of the family, we involve the children in reviewing the performance of a number of investment managers that manage the substantial wealth on their behalf. Through this process they will learn the specifics of wealth stewardship like whether the return generated is worth the risk that those managers are taking
Results
This process will prepare the next generation for the responsibilities of wealth stewardship while reducing any risks involved with the cross generational transfer.
