On average only 53 per cent of parents are planning to split their wealth evenly among their children when they die.
In Generation Game: Financial Tribes in Family Finance experienced wealth managers Netwealth surveyed 1000 parents of 25-35-year-olds. Those who said they were most likely not to be sharing their assets equally said they have reached this decision because they have already provided significant financial support to one child (15 per cent) or because they felt their children had different financial responsibilities and wanted to provide greater support for those who needed it more (14 per cent).
Of those taking a disparate route 4 per cent said they did not wish to support their children's partners/wider family, 7 per cent said they were estranged from one or more of their children and 14 per cent said their offspring have different incomes so they want to provide greater support to the ones who need it more.
These fascinating finding are pertinent as for many the global pandemic has been a trigger to review family financial planning. Many have utilised trust and corporate service providers to protect assets and mitigate the risk of possible future disputes, particularly clients with complicated business interests.
The ILS World private client team has been supporting international families for more than 30 years and recent conversations have included the role of family charters and wealth preservation structures to hold collectibles and luxury assets. The cornerstone of intergenerational wealth transfers remains trusts and foundations and there has been a great deal of interest around impact investing together with the links between entrepreneurship and philanthropy.
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At ILS World, we don’t restrict ourselves, we like to go beyond the borders. That is why we operate globally. You will find our offices in Isle of Man, British Virgin Islands, Hong Kong, and Portugal.