UHNW estate plans benefit from testamentary trusts that are created in conjunction with or during probate of a will. Trusts confer substantial tax advantages on beneficiaries, but only if they are formed and structured properly. Under current laws, using a trust in lieu of a direct inheritance of wealth can remove the value of inherited assets from being included as part of an heir’s regular taxable income. Trust structures and tax benefits in other countries will vary, and our advisors have the knowledge and experience to assist UHNW investors to navigate the multiple conflicting estate and trust laws that will govern how their assets may be passed on to heirs and legatees.

Testamentary trusts can also be used to confirm asset transfers to persons outside of a family structure and to arrange regular income and resources to care for disabled family members. Banc Star Financial’s UHNW team confers with all of their clients to determine the optimum estate and testamentary trust mechanisms that will transfer assets with a minimum of tax and regulatory burdens.

Tax Advantaged Allocation of Family Income

The tax laws and regulations in almost every country impose progressively  higher tax burdens on individuals that realize higher incomes. Our wealth advisors factor tax burdens and tax advantaged investing into their UHNW asset management plans, including considerations of how taxes on income will impact net income and gains. Allocating income streams to UHNW family members that have lower total income can reduce the family’s aggregate tax burdens by tens of thousands of dollars. A wealth management team that concentrates its efforts on issues like these that are specific to UHNW investors will best be able to manage and reduce those tax burdens.

Business Succession Strategies
One of the most difficult tasks that a UHNW investor will face is the transfer of ownership and management of a family business to a new generation of leaders. That transition should begin long before the transfer takes  place, with selection and grooming of the children or other family members who will assume the reins of the business. Mismanagement of that process can catalyze family discord that spills into the business and impairs its value.
Banc Star Financial’s wealth advisors assist UHNW investors and their families to establish regular channels of communication that can preclude surprises with respect to these. Our services can help to verify the fairness of succession planning and to determine the persons who are best willing and able to step into a management role.
A well-structured UHNW wealth and asset management plan can incorporate the equivalent of a shareholder’s agreement to document this process and to prepare all family members for any transition.
Optimizing the Value of Vacation Property

Many UHNW families own multiple properties that are used for family retreats or gatherings. Under certain circumstances, those properties can be utilized to generate revenue through short-term rentals. Our wealth advisors work with UHNW families to configure vacation properties as business assets, which can further simplify the transition of that property to new generations of owners in the family. We also advise on the formation of co-ownership agreements that allocate rights and responsibilities among multiple property owners. With the right ownership structures, UHNW investors can also minimize property and capital gains tax burdens from the use and sale of those properties.