HNWs rapidly reassessing international options amid geopolitical instability

Global instability and geopolitical upheaval have led to a rapid reassessment of international plans among high-net worth (HNW) investors, according to Utmost.

The wealth solutions provider said that tax has now become secondary to stability and security and suggested that because of geopolitical risk associated with the Middle East, people leaving the UK will be more likely to focus on destinations within Europe.

Utmost said that another key consequence of this volatility is that diversification of geographies and structures are becoming defining features of the wealth landscape, as families seek to safeguard their wealth and manage succession planning smoothly.

The wealth group highlighted that younger family members are already more internationally mobile than ever with families increasingly spread across borders, so this trend will accelerate as families seek greater optionality and look to diversify jurisdictional risk.

Utmost said this would lead to “greater demand for portable structures” that can manage wealth seamlessly across borders.

“Heightened geopolitical volatility has changed the game and upended previous assumptions about certain jurisdictions,” commented global wealth specialist at Utmost, Marc Acheson.

“Wealthy families seek safety, stability and certainty and, as a highly internationally mobile group, we can expect them to continue to diversify their geographic footprint and use different structures to hedge against emerging risks, safeguard wealth and ensure smooth succession planning.

“This greater international dimension will also increase complexity for the private banks and advisors serving these families and they will need to adapt to this new reality.”

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