Offshore Evolution: Transparency and Solutions in Cross Border Wealth Structuring

Today STEP published a report examining international trends in the trust and estate planning industry.

The report covers many areas including:
The impact of the policy and economic environment; How changes affect clients; Competition; Business Management; Products and Services

Order your copy of the report or view the executive summary.

One of the main findings is that wealthy families are increasingly looking to manage their assets internationally and highlights the growing need for their professional advisers to give tax advice on a global, not just local, basis. Those advisors and trustees who master global and integrated tax advice will thrive in this new environment.

Much more sophisticated advice is needed to manage the complexity of tax issues wherever a client may have assets or connections. Clients want home country compliance and international tax neutrality to avoid additional layers of tax.

Three key trends were identified which will be felt across the industry for years to come

The Transparency Dividend

The end of secrecy will mean families will seek out advisors and trustees who can master global tax advice. Economic conditions will mean tax competition between countries will increase and the distinction between offshore and onshore will disappear.

Investors and their advisors will choose jurisdictions for tax neutrality, so that investors from several jurisdictions are not subject to the additional layers of taxation that sometimes arise in a cross-border context.

All this requires much more sophisticated tax and regulatory advice where integration is key. This means bringing together the advice from country A and country B to achieve the best outcome overall for the family.

Transforming Trust and Estate Planning into Wealth Structuring

Modernising practices are integrating trust and estate planning into a wider wealth management business. Trustees are adopting best practices in investment management and enhancing compliance processes to reduce risk.

‘Trust Plus’ Strategies

Products and services are being combined together to create new revenue opportunities for wealth structuring professionals. New strategies are being added to the toolbox and existing strategies are being combined in new ways to create customised solutions in higher value structures.

Thirty-two leading Trust and Estate Planning practitioners were interviewed between March & June 2009 about their predictions for the industry over the next 12-18 months.