How to advise the modern, multi-jurisdictional family

Advisers are recalibrating how they work to ensure a joined-up approach, collaborating with other advisers across borders and professions to ensure the needs of the family are met, and embracing a broader skillset to support increasingly complex family dynamics.

Respondents overwhelmingly identified the importance of good communication.

As one respondent observed: ‘We all need to be slightly less focused on our little patch and collaborate with other professionals locally and internationally to help the family achieve their objectives’.

Communication and early planning is essential. Respondents overwhelmingly identified the importance of good communication – particularly within families, with early and open conversations about planning and succession – as the key factor for families.

This emphasis on communication – and in particular early communication – is a clear movement away from the traditional, more paternalistic historic approach of keeping younger generations sheltered from too much knowledge for as long as possible.

This approach is increasingly seen by advisers as archaic and being consigned to history. The other key piece of advice, and one that for many respondents was linked to communication, was to plan – well in advance.

Addressing the challenges

Navigating family politics is always difficult, but it has become even more of a challenge to advise the modern family as new generational perspectives are emerging.

Identifying the current and relevant issues requires expertise on the part of the adviser and collaboration across borders, cultures and professions to ensure that families are getting the right advice. 

STEP recognises the need to engage with families and governments globally to produce industry solutions and best practices that will help families plan for their futures with certainty and clarity.

But everyone needs to take some action to improve the situation.

Advisers need to take action

Advisers need to ensure flexibility in creating family structures and stress test these by running through different potential scenarios, avoiding overly complicated structures that can result in contentious circumstances.

With the growth in multi-jurisdictional families, advisors need to ensure they understand cultural and legal differences between the jurisdictions, especially with regard to the nature of a family.

The diversity and complexity of modern families requires bespoke planning to meet each family’s needs and, where appropriate, collaboration with other professionals locally and internationally to help the family achieve their objectives. 

Therefore, it is clear that advisers must have an all-round skill set, beyond the technical skills and expertise that have traditionally been required, honing their soft skills specifically to better support the increasingly complex family dynamics highlighted in the survey.

Help for families

Clear, early and ongoing communication within and between the family and its advisors is more essential than ever, given the increased complexities within families.