Succession planning isn’t just a financial exercise; it’s a strategic commitment to securing your family’s future and values across generations. In today’s global landscape, many families face increasing complexity with cross-border regulations, evolving tax regimes, and the challenge of maintaining continuity in leadership and wealth. Amid these uncertainties, offshore trusts have emerged as one of the most effective tools for creating long-term stability and security.
In this article, Chad Phillips, Business Development Director for Africa in our Jersey office, discusses how offshore trusts fit into a broader succession strategy, why they’re essential for multi-generational wealth preservation, and shares practical steps to help families create a roadmap that ensures continuity, stability, and an enduring legacy.
Succession planning is creating a strategy to ensure a smooth and secure transfer of wealth across generations within a family. It covers everything from who will take over key roles within a family business to the distribution of assets (whether that’s personal wealth or estate) Guided by the trust’s framework and our obligation to act in the beneficiaries’ best interests. When executed effectively, it fosters family unity and ensures enduring objectives are achieved.
Q: What’s the best way to pass on wealth while maintaining control and protecting assets?
Every family has its own reasons for future-proofing wealth, whether it’s mitigating political or economic uncertainty, diversifying assets across jurisdictions, or simply having peace of mind that everything is secure and passed on the right way. One of the most effective ways to achieve this, while maintaining appropriate control and safeguarding assets, is by establishing an offshore trust.
A well-structured trust provides flexibility and security, ensuring wealth is managed and transferred smoothly in accordance with the trust’s framework and long-term objectives. As professional trustees in Jersey, we don’t simply follow instructions, we exercise discretion and sound judgment, guided by our fiduciary duty to act in the best interests of the trust and its beneficiaries while taking into account the settlor’s intentions. This approach creates a robust governance structure that protects assets, preserves family values, and delivers continuity across generations.
I have seen succession planning go badly wrong when it’s rushed, done on the cheap, or approached without fully considering the unique circumstances of the family involved. One of the most common and costly mistakes is underestimating the complexity of tax and due diligence obligations. Offshore trusts come with jurisdiction-specific requirements that can be overwhelming if you’re unfamiliar with what is required.
The key takeaway? Engage expert advice as early as possible. Consult with a professional trustee in the jurisdiction where you intend to establish your offshore trust. Effective planning should look beyond the present, anticipate potential changes in family dynamics or personal circumstances, such as relocation, even if you expect your strategy to remain stable for years to come. These considerations can significantly influence the effectiveness and resilience of your plan.
Engage with reputable tax and legal advisers and very important to select the right service provider that truly understands what you want to achieve. That they have a proven track record; this is not an area where shortcuts pay off. The most successful strategies are straightforward in design but built on careful, informed decisions from the outset. Do your homework on the jurisdiction and service provider. Then, let experienced professionals handle the heavy lifting whilst navigating you correctly, so you can be confident everything is executed correctly, protecting your wealth, preserving your family harmony, and your long-term goals.
Start by identifying the assets you wish to settle into the trust. Next, define your time horizon, how long you intend the structure to remain in place and clearly articulate the objectives you want it to achieve. In my role, I’ve had the privilege of working with second and third, fourth generation families whose structures were originally established by their great relatives. This experience underscores the importance of thoughtful planning from the outset, as well-designed trusts can endure for decades and continue to serve evolving family needs.
The next critical step is selecting the right trustee and jurisdiction. The jurisdiction you choose sets the foundation for your structure; it dictates tax obligations, regulatory compliance, reporting standards, and the level of transparency required. These decisions are more than technical; they directly influence the trust’s long-term stability and your ability to achieve strategic objectives. Choosing an inexperienced service provider or opting for a jurisdiction simply because it’s quick, inexpensive, or asks fewer questions can lead to significant complications for you and your beneficiaries in the future. I have always said a well-considered choice today is essential to avoid costly problems tomorrow.
Choosing the right trustee is one of the most critical decisions in the succession planning process. Whether you opt for an individual or a corporate provider, reputation and experience matter. Look for a trustee with a proven track record, deep expertise in your chosen jurisdiction, and familiarity with other well-regulated environments. Don’t hesitate to request case studies on a no names basis or examples of the types of structures they administer but also remember no one family is the same, everyone is different, so what might work for you may not work for someone else. All this will provide valuable insight into how they have managed similar structures and may give you comfort and reassurance to make a decision whether they are the chosen service provider for you or not.
Remember, your relationship with your trustee isn’t transactional; it’s a long-term partnership that plays a pivotal role in safeguarding your wealth and legacy.
A good trustee isn’t just there to hold assets; they should guide you through the process with clarity, handle the paperwork, and make sure everything meets legal and international reporting standards, including Source of Wealth checks and ID requirements. Finally, consider your values and family governance. Setting these expectations early helps shape the trust so it reflects your goals and keeps wealth management aligned with what matters most to you and your family.
At Suntera, we recognise that multi-generational wealth management is never a one-size-fits-all exercise. That’s why our team, including myself, is committed to delivering bespoke, efficient, and innovative solutions tailored to your unique ambitions, while safeguarding the interests of your family and named beneficiaries. Our approach takes a holistic view, addressing everything from family governance to complex multi-jurisdictional structuring. Backed by decades of experience and a proven track record, we pride ourselves on combining technical excellence with trusted credibility to help you achieve lasting success.
Every legacy tells a story. Ours is one of trust, longevity, and unwavering commitment to families like yours. We’d welcome the opportunity to discuss how we can help you protect what matters most, today and for generations to come.