Evgenia Koukoumakia, head of wealth planning at EFG International, shares a deep dive into the evolving demands of ultra-high-net-worth families in a globalised world, highlighting the hidden pitfalls of cross-border wealth planning, the critical importance of family governance, and how EFG is delivering personalised, culturally attuned legacy solutions.
She brings her legal acumen and global insight to one of the most intricate challenges facing private banks today: helping families manage succession and preserve harmony across borders, cultures, and generations.
Uncovering the hidden challenges in cross-border wealth transfers
When it comes to wealth transfer planning for international families, Koukoumakia stresses that some of the most critical issues are also the most easily overlooked, especially when multiple legal jurisdictions are involved.
“Private international law aspects of cross border wealth transfers may not be properly addressed by the respective advisers,” she cautions. “For example, interdependencies between the applicable law of the bank accounts and respective inheritance law / the inheritance tax law of the individuals can easily be overlooked.”
It’s a subtle yet significant blind spot. Without clarity on which jurisdiction governs what, especially in the case of bank accounts, real estate, or trusts, families can face delays, tax inefficiencies, or even contested inheritances. Add to that the human variable: people move.
“The need to anticipate possible changes in individual circumstances, in particular the relocation of family members,” she continues, “and to make appropriate provision, either in the form of implementing solutions that allow for flexibility and adaptability, or in the form of regular reviews of various aspects of the wealth structure in place,” is paramount.
That adaptability is central to EFG’s philosophy. Long-term wealth planning, after all, is a living structure, not a static one.
Reconciling inheritance laws: bridging civil and common law systems
For international families, succession planning often means reconciling fundamentally different legal systems. Civil law jurisdictions (like those in continental Europe) differ dramatically from common law systems (like the UK or US) in how they treat inheritance, ownership, and family rights.
At EFG, Koukoumakia explains, “I believe that EFG wealth planning experts have both the expertise and the experience to identify such potential areas of conflicting inheritance laws in a timely manner.”
When complexities arise, as they inevitably do, the bank’s approach is collaborative and holistic. “where necessary, our teams work with external legal experts to navigate the complexities of conflicting jurisdictions. This teamwork approach ensures that the succession plan developed is designed to respect the legal framework whilst remaining aligned to our client's wishes.”
That means zooming in on every possible nuance: “We focus on every detail - be it a specific nuance or a local inheritance rule – to make sure that it is carefully coordinated across jurisdictions.”
Structuring for sustainability: Governance, Communication, and Continuity
For EFG, protecting family wealth goes hand in hand with protecting family harmony. A major part of that involves establishing robust governance frameworks tailored to each family’s unique dynamics.
“We work closely with families to establish clear governance structures,” Koukoumakia says. “By helping families implement Family Constitutions, establish family councils, define roles, and create open channels of communication, we help create a framework that supports both effective decision-making, communication, and family harmony.”
These structures are particularly crucial as younger generations begin to take on leadership roles in family enterprises or wealth management. And EFG doesn’t wait until that transition is imminent to prepare the next generation.
“The most effective strategies involve real and actual engagement with the next generation. This entails a combination of elements such as tailored and targeted education focusing on managing private wealth and creating opportunities for the next generation to take ownership and accountability.”
It’s not just about teaching finance, it’s about building confidence. “We believe that these initiatives help to demystify wealth management, providing the next generation with the tools and the confidence needed to take on leadership roles.”
Cultural intelligence in wealth planning
One of EFG’s defining strengths is its ability to design bespoke solutions that are not only legally sound and financially effective, but also culturally resonant.
“At EFG, our wealth planning team combine deep local knowledge and experience with global reach,” Koukoumakia says. “Our wealth planners are seasoned professionals with a broad range of legal, tax, accounting, banking, fiduciary and insurance expertise who have lived and worked in multiple jurisdictions.”
This real-world experience is not just valuable, it’s necessary. “When pairing a wealth planner with a client, we consider any specific country, culture, ethnic or religious expertise required, to the extent these aspects may have an impact on wealth planning.”
As an example, she adds: “For example, we have wealth planners with experience of working in the Middle East, who are conversant with Sharia law and who would be appointed for clients located in in the Middle East. The same approach applies for Asia and Latin American based clients respectively.”
But it’s not just about expertise, it’s about empathy. “Our approach is deeply personal. We listen closely to our clients to understand their unique needs and values, ensuring that every wealth transfer plan not only meets legal and financial objectives but also resonates with the family’s heritage and cultural values.”
A future of purpose-driven planning
As transparency increases and regulation tightens, how will wealth planning evolve in the coming decade?
Koukoumakia sees a bifurcation: “UHNW families have had to re-evaluate their strategies and restructure primarily in two opposing directions: (a) either more sophisticated solutions that offer more options, but which entail a higher cost, or (b) simpler and delayered structuring.”
But whichever path a family takes, one thing is constant: the focus on substance. “There has been a clear trend toward structuring wealth around real needs and real economic substance.”
Looking to the future, Koukoumakia predicts this will continue. “This trend will continue for the next 5-10 years and will be the key component for long-term, sustainable wealth planning strategies. In addition, advanced compliance measures and flexible structures that can quickly follow and adapt to regulatory changes and technological developments will be paramount.”
"Cross-border wealth: EFG International rewrites playbook for wealth transfer" was originally created and published by Private Banker International, a GlobalData owned brand.
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