The Wealth Succession service offering
The Wealth Succession service offering is built around the unique principles of Generational Momentum and the Four-Silo approach to estate planning. Both these methods are unique to the business and provides a grid against which the existing estate planning of a client can be evaluated, and future planning done.
Generational momentum is a theory that explores the rules of engagement between generations in the transfer of wealth. It’s a relay that is run between succeeding generations and where the baton is the wealth that is being passed on from one generation to the next.
A runner in a 4x100m relay needs to understand that the baton must be handed over. Each runner is therefore the custodian of the baton for a set distance. It’s always about the handover whilst running as hard as possible. If a runner felt to be the owner of the baton, it would be difficult to hand the baton over, as the baton needs to go to a person who has started to move. The impulse of the owner would be to keep on running until the steam runs out and then only pass the baton on. Custodians are therefore better runners in a relay than owners. And so, it is with wealth succession as well.
Understanding the Generational Momentum and unpacking and reorganising the four silos in which wealth reside, provides insight into the factors that can assist or hinder the successful transfer of wealth from one generation to the next. It is a planned and managed process and should not be left to chance.
The result is a complete evaluation and on-going management of all components of wealth to provide tangible peace of mind that the family’s wealth will continue to provide security and purpose for generations to come.
THE FOUR SILO APPROACH TO ESTATE PLANNING
An individual estate is housed in either one of 4 asset silos. The Wealth Succession experience covers all four of the silos, both local and offshore and ensures that an estate planning strategy is initiated and implemented to cover all four asset silos in the form of a simple and logical estate plan.
Trust Assets
Trust assets are owned by trustees and managed according to a trust deed. This silo comprises all assets owned in a trust structure, wherever they may be in the world. The Trust Deed, the Trustees, Letter of Wishes and the definition of the beneficiaries.
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Estate Assets
Estate assets are owned by a living human being, is subject to marital regimes and the succession managed by an executor in terms of a will or in terms of the intestate succession rules or forced heirship rules.
The assets owned directly by the individuals in the family, are subject to death duties and taxes, marital regimes and personal risk. The transfer logic in this silo is governed in a will, ante nuptial agreements and a host of personal relationships.
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Company Assets
Company assets are owned by the company itself, managed by directors and subject to the memorandum of incorporation.
Assets held in companies belong to the company, not the owner of the shares. The company itself as well as the relationships and agreements between shareholders require specialist attention.
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Life & Pension Assets
Life and Pension assets are managed by trustees of these funds and subject to policy rules and beneficiary nominations.
Pension, provident and retirement annuity funds as well as the proceeds of life cover is governed by very specific legislation, policies and beneficiary nominations.
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