The preservation of wealth across generations, protecting it from unforeseen events and ensuring its aligned with the client's wishes, requires deliberate, expertly crafted structures that are reviewed and maintained over time.

For high-net-worth families with international connections, the complexity of this task is amplified. Beneficiaries in different jurisdictions, assets held across multiple countries, and evolving regulatory environments all demand a level of coordination that goes well beyond standard financial advice.

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The Limits of Informal Arrangements

Many wealthy families delay formal succession planning, relying instead on wills, joint ownership, or informal family agreements. This approach carries significant risk. Intestacy rules vary dramatically by jurisdiction. Assets held in personal names are exposed to claims from creditors, relationship breakdown, or disputes among beneficiaries. And without a structure in place, the tax burden on an estate can be substantial.

The families who navigate generational transition successfully tend to have one thing in common: they put formal structures in place early, review them regularly, and engage specialist advisors who understand both the legal and human dimensions of wealth transfer.

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Why Succession Planning is Critical in 2026

Regulatory transparency has increased dramatically. Common Reporting Standard (CRS) information sharing between jurisdictions, beneficial ownership registers, and tightening anti-money laundering requirements mean wealth is far more visible across borders than it was a decade ago. The rules underpinning succession planning are not static and a structure that was efficient five years ago may no longer be. The emphasis on transparency is shifting the tax and trust legislation in multiple jurisdictions.

Wealth has become more internationally mobile than ever, and families increasingly live, work, hold assets, and have beneficiaries across multiple countries. Without a coordinated structure, this creates real exposure to double taxation, conflicting succession laws, and forced heirship rules that may not reflect the family's actual wishes.

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In 2026, the largest intergenerational wealth transfer in history is underway, which involves significant wealth built over the past 30-40 years moving to the next generation. Families who haven't planned properly risk disputes, value erosion through unnecessary tax, and, in the worst cases, total loss of control over how assets are distributed. Family complexity has also increased. Blended families, multiple marriages, and beneficiaries spread across jurisdictions all increase the risk of disputes, and the absence of a clear, professionally drafted structure is often where those disputes begin.

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‍The Tools of Effective Succession Planning

Trusts

A discretionary trust, established in a reputable offshore jurisdiction such as the Isle of Man or the Cayman Islands, places assets under the stewardship of professional trustees who manage them in accordance with a letter of wishes. Trusts offer a high degree of flexibility, strong protection from creditor claims, and the ability to provide for beneficiaries across multiple generations without the assets ever forming part of a taxable estate.

For US clients and families with US-connected beneficiaries, South Dakota has also emerged as one of the most favourable onshore trust jurisdictions in the world, offering strong asset protection legislation, the ability to establish dynasty trusts that can run in perpetuity, and a high degree of privacy not available in many other US states.

‍Foundations

Foundations occupy a unique space between a trust and a company. Popular in civil law jurisdictions and increasingly used in Malta and the Cayman Islands, they are particularly well-suited for clients who wish to retain a greater degree of involvement in the management of their assets while still achieving the separation required for effective planning. For US persons, foundations require particularly careful structuring, given the complexity of US tax reporting requirements for foreign entities and the potential for adverse tax treatment if not properly designed from the outset, making early, specialist advice essential.

‍Family Investment Companies

For families who prefer a corporate vehicle, a family investment company (FIC) can be an effective tool for holding and growing assets across generations. Structured appropriately, an FIC allows parents to retain economic benefit while transferring future growth to the next generation in a tax-efficient manner. US families, and those with US beneficiaries, often combine an FIC with US estate planning tools such as grantor trusts or family limited partnerships, ensuring that wealth transfer is coordinated across jurisdictions rather than treated as a series of separate, disconnected arrangements.

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‍The Importance of Jurisdiction

The choice of jurisdiction is not merely administrative as it fundamentally affects the robustness of the structure. The Isle of Man, Malta, and the Cayman Islands each offer distinct advantages: strong common law frameworks, reputable financial services regulators, and deep pools of specialist expertise. Affinity Group operates across all three, meaning our clients benefit from local knowledge and seamless coordination regardless of where their interests are centred.

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A Long-Term Partnership

Effective succession planning is not a one-time transaction. Family circumstances change. Tax legislation evolves. New assets are acquired. The structures that serve you well today need to be reviewed as your world changes. At Affinity Group, we act as long-term partners to our clients, providing the continuity of relationship that genuinely complex wealth planning demands. For US clients and families with US-connected beneficiaries, the United States itself can also form part of an effective structure. South Dakota in particular has become a leading onshore trust jurisdiction, offering robust asset protection legislation and a high degree of privacy, while Florida remains a key hub for clients whose wealth, business interests, or family ties are centred in the Americas.

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Affinity Group

We are recognised for our award-winning trust services, acknowledged our Trust Company of the Year 2024 award at the Citywealth IFC Awards.

With offices in the Isle of Man, Malta, the Cayman Islands, the UK, and the USA, we offer clients with the jurisdictional breadth and local expertise to protect, grow, and preserve wealth across generations.

Succession planning sits at the heart of what we do, working closely with clients to put the right structures in place early, ensuring assets are protected from unforeseen events and passed on in accordance with their wishes.

Learn more about our private wealth services here.

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Contact Us

If you would like to discuss your requirements or learn more about our services, please contact us directly at info@affinityco.com

Our private wealth advisors will be in touch.