“It’s important to think about wealth planning structures that correspond to the family culture”

How would you describe the differentiators of your work with families served by Santander Private Bank?

After working in wealth planning for more than 20 years for families, I can conclude that some families are successful in multigenerational wealth transitions. The modern family is constituted in different formats and sizes. This diversity impacts family relationships and how its members interact when addressing wealth and succession planning.  In the case of international families especially, the complexities are potentially greater due to the multiplicity of countries involved. 

My view is that merely having wealth planning documentation does not always mean that the objectives it outlines will be achieved. To implement solid plans on behalf of our clients, it is important to consider planning structures that correspond to the family culture, as well as provide the next generation with financial acumen (such as financial education programs), so they can make mature decisions when the time comes for them to do so. Based on these principles, the avenues of discussion with families are (i) creating effective and efficient wealth transfer strategies based on the unique needs and desires of each family, (ii) cash flow planning, (iii) growth and preservation of capital planning, (iv) customized planning for international families, (v) financial education for coming generations, and (vi) philanthropic planning for the social legacy. 

In your assessment, what are the main challenges in the sector currently?

Any ongoing legislative discussions that potentially alter fiscal aspects always bring the need for families to review their wealth and succession planning. 

How do the current economic conditions and macroeconomic issues affect your operations?

The economic conditions and macroeconomic issues can bring significant changes to the wealth distribution of a family. Examples include the sale of the family business, driven by market conditions, increased currency diversification, or even a family moving to another country.

What are your expectations for the next year?

We should monitor discussions regarding relevant changes in tax rules that impact the organization of family legacies. Additionally, we anticipate significant movement in certain sectors involving the sale of family businesses, potentially driving the M&A market, and attracting local and international investment to some industries.

*The opinions expressed in this interview are exclusively those of the interviewee and do not necessarily reflect the views of Banco Santander. The information provided does not constitute any form of legal advice.