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. 

Early planning within the family and the family business regarding succession is crucial in avoiding conflict and difficulties further down the line.

Family dynamics and relationships need as much care and consideration as legal and tax planning. Therefore, families and their advisers should regularly revisit wills, trusts and other documents, to ensure they are up to date and reflect their intentions.

Lobby the legislators

It is also important to keep abreast of current legislation and to encourage lawmakers to take decisive action through lobbying and consultations.

It is clear that legislators urgently need to:

• Review legislation around cohabitation rights in relation to cohabiting couples, siblings and those in platonic relationships across various jurisdictions. The existing legislation appears to be lacking, inconsistent or discriminatory. 
• Revisit the legal definitions of family members, particularly the legal definitions of children and the differing rights of those children, and the current discrepancies in the law.
• Examine the inconsistencies and deficiencies relating to the creation, recognition and enforcement of protective measures (such as powers of attorney) to enable clearer and more efficient planning for incapacity.
• Identify some of the more challenging tax-related issues that advisors face now that multigenerational families are more commonly living together across various jurisdictions and cultures.

Emily Deane is technical counsel and head of government affairs for the Society of Trust and Estate Practitioners.

Find out more

STEP is calling on advisers and legislators globally to adapt and modernise to keep up with the needs of today’s modern families. To download its report, Meeting the Needs of Modern Families, which is sponsored by TMF Group, visit: https://bit.ly/modern_families