The multifaceted problem of wealth transfer – The Property Chronicle
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The multifaceted problem of wealth transfer

The Fund Manager

Politics, emigration and the modern family are only a few of the challenges of wealth and succession planning today

There is no lack of data on the vast, and growing, amounts of wealth set to be passed from generation to generation in the coming decades. In 2019, the global number of dollar millionaires passes 20m while, over the next five years, the number of ultra-high net worth individuals (those with over US$30m) is expected to rise by 22% (Wealth Report 2019, Knight Frank). For clients considering how to ensure their wealth survives generational transfer, and is subsequently put to best use, the uncertain world in which we now live can seem distracting and hostile. Unsurprisingly, there is plenty to worry about.     

In the UK, while we enjoy a moment of respite from daily Brexit headlines, the immediate panic around the UK’s future relationship with the EU has given way to discussions over the next leader of the Conservatives, as local election results confirm a widespread disenchantment with the main political parties. Were Labour to come to power, some of the suggested reforms don’t bode especially well for wealth and succession planning; tax at 45% on income of £80,000 or more and at 50% on income of at least £123,000; an excess levy on salaries above £330,000; and an increase corporation tax to 26% are among the changes floated since the 2017 party manifesto. However, there can be no certainty that the existing tax regime would remain stable even under Conservative leadership. Meanwhile, in Europe, the rise of populism seems to threaten the integrity of the European Union, and global market confidence isn’t helped by the US’ international agenda or expectations of a cyclical slow down over the next couple of years.

The Fund Manager

About Simon Gorbutt

Simon Gorbutt

Simon Gorbutt is a solicitor, qualified in England and Wales, and Trust and Estate Practitioner. He is based in Luxembourg where he specialises in cross-border wealth planning for high net worth individuals. Simon is Director at Lombard International Assurance and heads an in-house team providing services to Northern European and US expatriate clients as part of the company’s Wealth Structuring Solutions capability. He is a frequent speaker on insurance-based wealth solutions, a contributor to ITPA and a member of the STEP Benelux Board.

Articles by Simon Gorbutt

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