Preserving wealth has never been a passive affair. Today’s UHNWs increasingly treat succession as an ongoing discipline rather than a single handover moment, guided by expert advisers who help them navigate shifting tax rules, global mobility and the emotional realities of inheritance. Two of the Tatler Address Book’s most trusted names reveal exactly how Britain’s wealthiest families prepare the next generation for both responsibility and longevity.
Starting succession earlier than you think
Sophie Kilvert, Director and Client Adviser at Rothschild & Co Wealth Management, is unequivocal that planning should begin long before a triggering event. As she puts it, ‘Whether a family has passed down wealth through many generations, is running a country estate or has enjoyed more recent financial success, I advise that preparation, counselling and honest conversations are the best way to navigate the complexities of a planned succession.’
For Kilvert, clarity is the cornerstone. ‘It’s essential to gain a holistic view of a family’s wealth as a basis to defining their long-term financial and lifestyle objectives, only then can we develop a plan to help achieve them.’ Her approach often involves categorising wealth: ‘I often use a wealth framework with clients that allows them to categorise their wealth into various pots for multiple purposes, such as lifestyle spending, giving money away, cash management, growing a nest egg and business spending or more occasionally more adventurous investments.’
The psychological shift is key: ‘Viewing wealth in distinct pots helps shift the focus away from abstract numbers and timelines towards the issues that matter most – and with a clear view, it’s easier to plan more effectively.’
Dan Barratt, Chartered Financial Planner at Brooks Financial, agrees that thoughtful structuring can begin at any stage. ‘Succession planning is about ensuring family wealth and values endure across generations. Modern families can start by focusing on three pillars: clarity, structure, and flexibility.’ He adds that ‘Early conversations are essential – succession isn’t just a legal exercise, it’s a cultural one.’
The mistakes that cost millions
Despite their resources, wealthy families often fall prey to surprisingly avoidable errors. For Kilvert, the biggest problem is silence. ‘A lack of communication can have a devastating impact. Many of the challenges associated with wealth can be overcome through careful and guided discussion.’
Barratt sees the consequences of technical missteps, particularly around property gifting. ‘One of the most significant and costly mistakes we see with passing wealth to the next generation is falling foul of the Gift with Reservation of Benefit rules.’ He notes that gifting a property but continuing to use it rent free is a classic trap: ‘Unless market rate rents are paid and certain conditions met, HMRC consider this a failed gift.’
Another danger is leaving everything too late. ‘Another frequent error is delaying succession planning until a triggering event, like ill health or a business sale. Succession should be a proactive, ongoing process, not a last-minute scramble.’
Preparing heirs for responsibility
For families accustomed to privacy and discretion, talking about money can feel awkward. Kilvert observes this regularly. ‘Traditional British awkwardness in talking about money also comes into play with many parents reluctant to address the subject of their wealth with their children.’ This reluctance can lead to seismic shocks: ‘There are plenty of examples of the money being a shock – people who thought they were getting nothing and actually inherited a £1billion – which is not an ideal starting point.’
