The wealth manager's role goes well beyond the traditional notion of looking after savings. It requires a close and comprehensive understanding of the needs of the client and their family. Danielle Goedert, Head of Luxembourg Market at Banque de Luxembourg Private Banking, discussed these ideas.
How are wealthy clients' expectations changing with regard to the management of their assets ?
In recent years, our clients have been looking for a service that goes well beyond the traditional idea of managing their savings. Their circumstances are often complex and have an international dimension. Clients want their banker to manage their wealth with an approach that is both global and tailored to their own and their family's personal projects, whether it concerns an investment, growing their assets, planning for retirement or preparing to hand over to their successors.
How do you work with your clients during the transfer process ?
Appropriate structures have to be selected for the transfer. Beyond the technical and legal aspects, the indispensable prerequisite is to support clients by facilitating dialogue between the various stakeholders to ensure that family harmony is preserved – because it can be difficult to approach the subject of passing on your assets. Many successions fail due to a breakdown of trust or a lack of communication within the family. We have also found that there is often a discrepancy between the way the transferor and the heirs perceive the assets and various related aspects. It is not just money that is being passed on, but also an intangible heritage that includes values, practices, know-how and even an address book. All this has to be integrated into a reflective process that builds the succession on solid foundations.
Does this all-embracing vision of wealth management follow through into working with the next generation ?
If families so wish, we can help the rising generation prepare for and gain a greater understanding of the impact of succession, in terms of both opportunities and responsibilities. This can sometimes include training programmes, for example. Our support for young heirs includes learning about the value and role of money and reputation, and making sound decisions in financial management. This helps them prepare rationally and realistically for the next stage of their life and take decisions that are in line with their true aspirations.
What are the implications for the family's assets when the family is dispersed across a number of countries ?
Luxembourg residents increasingly own property outside Luxembourg, while the heirs of Luxembourg residents may live in France, Belgium, Germany or other countries. These families need guidance to address specific legal issues, facilitate transfers and limit tax losses.
Does the wealth manager also have a role to play in the non-nuclear family ?
Yes indeed. Sometimes traditional families are followed by separated, single-parent or blended families and common-law relationships or partnerships. These new forms of shared living have tax and inheritance consequences as well as civil implications. As well as these trends, people need to safeguard themselves and their heirs and family in the event of accidents, such as illness, disability, dependency or redundancy. All these situations need tailor-made solutions on an individual, case-by-case basis, with the private banker taking on the mantle of family banker in the broadest sense