Your Wealth | 18 November 2021


The future starts today: planning for the next generation


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From education and philanthropy to investing and property, planning how your family can benefit from your wealth is rarely straightforward. Coutts Crown Dependencies are here to help you have all these discussions, so you can put your family first.

For many families, at the heart of their wealth planning is the dream of being able to provide for their loved ones and the next generation.

However, there is often an assumption that, despite all the best intentions, a family will get poorer over the generations. This has become so accepted that many cultures worldwide have encapsulated it with a phrase: in England, it’s “clogs to clogs in three generations”; in Italy, “from stables to stars to stables” and in Japan, “the third generation ruins the house”.

But despite this, it is entirely possible to plan prudently to protect your wealth, now and for your children. Recently, we held a seminar with a number of clients we had helped with their next generation wealth planning.

One attendee said: “We’ve seen many families torn apart by money because they simply weren’t prepared for it. Hence we decided to get together and work out what the money was for and how it was going to be managed in the future. It required us to go on some personal journeys and go over some personal hurdles of our own. Some families never find resolution but ours did. For us, it was a very successful process.”

Another client told us: “It provided a lot of relief to me personally by being able to involve my whole family and start up a path towards wealth succession without having to worry. Through the Coutts process, it was no longer just dad coming up with all the ideas and decisions. It was very rewarding – it also helps strengthen family ties if you do it in the right way.”

So how could Coutts Crown Dependencies help your family plan for the future?

Planning, discussion and agreement

We often feel like there’s a taboo around ‘succession’. It can be a source for family disagreements that go far beyond the finances. Therefore, it’s crucial to have collective discussions on what your family wants to achieve with its wealth, how you want to pass it down and what and who it is for.


A typical wealth portfolio may well hold assets in many jurisdictions that are subject to taxation or specific gifting rules when it comes to passing them on to the next generation. For example the UK has a 40% inheritance tax that applies on certain estates and gifts. This generally applies to the worldwide assets of UK domiciled or UK deemed domiciled individuals (those resident in the UK for 15 of the last 20 years). It also usually applies to the UK assets of non-UK domiciled individuals, with certain exceptions.

Planning for tax in these circumstances is key, as the timing of gifts can have an impact on the legacies you or your loved ones might receive. We will work closely with your existing tax advisors to ensure that all aspects of taxation are taken into account.


Coutts Crown Dependencies operate with access to the investment services and products of Coutts UK. This means we are able to provide investment advice to help you plan for a wealth transition and meet your investment goals. Though no investment is without risk, historically, equity returns can be better the longer you are in the market. With the increasing risk of inflation potentially eroding capital values, now could be a good time to consider investing. Careful investment in a diversified portfolio could help protect your wealth from inflation so that future generations benefit.

Always remember though, that past performance should not be taken as an indication of future performance. The value of investments, and the income you get from them, can go down as well as up and you may not get back what you put in.

Structured lending

If you’re looking to provide for the younger generation today so you can set them up for their own life journeys, then Coutts Crown Dependencies can put you in touch with the right people at Coutts to help with a range of lending services, including flexible mortgages and investment backed lending – a loan secured against your investment portfolio. These loans can allow you to make a more dynamic use now of what will eventually be your children’s inheritance.

What else can Coutts help with?

Family businesses:

If you own a family business, the Coutts Institute team are able to share insight around family governance, ownership, succession and leadership development. They can also help by providing connections within the Coutts network to help you find the best working solution for your business and family.



Coutts’ charity and philanthropy services can help you find the right cause and the right way to give, setting up a legacy for you and your family to nurture.



All our professionals are here to guide the next generation through the meaning of wealth and what they might expect, as well as providing them with work experience and a full understanding of the responsibilities and facets of your family’s wealth.


A Place to Start:

Finally, it all comes back to what’s right for you and your family. Having been a bank, an investment house and a wealth manager for over 300 years, Coutts are here to listen and support you with any and all the questions you might have – and to help your family find the best way to enjoy their wealth today and tomorrow.

Take a look at the Coutts guide to next generation wealth planning.

Tax reliefs referred to are those applying under current legislation, which may change. The availability and value of any tax reliefs will depend on your individual circumstances.