High net worth individuals (HNWIs) are reassessing their international plans due to global instability and geopolitical upheaval as tax mitigation is deprioritised, says Utmost’s Marc Acheson.
Until recently the UAE had been a major draw for expats, particularly among younger generations and entrepreneurs, but increased awareness of the geopolitical risk associated with the region means people leaving the UK are more likely to focus on destinations within Europe, such as Italy and Switzerland, Acheson said.
Global volatility is also accelerating the trend of families seeking to branch out in terms of geographies and structures to diversify jurisdictional risk, safeguard their wealth and manage succession planning smoothly. This is compounded by younger family members becoming more internationally mobile than ever, with families increasingly spread across borders, and will lead to greater demand for portable structures that can manage wealth seamlessly across borders, said Acheson, Utmost’s global wealth specialist.
The complexity of managing wealth across multiple jurisdictions will heighten the need for advice, he added.
Family offices are already expanding their international footprint and private banks and asset managers will have to adapt and take a truly global and holistic view of family affairs to ensure the right infrastructure is in place.
Acheson said: “Heightened geopolitical volatility has changed the game and upended previous assumptions about certain jurisdictions.
“Wealthy families seek safety, stability and certainty and, as a highly internationally mobile group, we can expect them to continue to diversify their geographic footprint and use different structures to hedge against emerging risks, safeguard wealth and ensure smooth succession planning.
He added: “This greater international dimension will also increase complexity for the private banks and advisors serving these families and they will need to adapt to this new reality.”
