Wealth engineering expertise to help clients
Wealth engineers provide legal and tax support to private bankers. One aspect of their role is to answer clients’ questions about passing on their assets. Addressing this issue within a banking relationship enables clients to ask questions confidentially, in an atmosphere of trust.
Our aim is to give an initial response to clients’ questions, clarify ideas and shed light on legislation.
Beyond the standard considerations (donation, protection of the surviving spouse, etc.), wealth engineers can be contacted for advice on more complex matters such as:
- What happens if the assets or family unit are spread across multiple countries – this situation we encounter often owing to Luxembourg’s international standing;
- Transferring a family business: “this is a very specific issue, as entrepreneurs want to protect their business and hand over to the next generation while maintaining harmony within the family”, says Mélanie Lecuyer;
- Lack of descendants: “clients without direct heirs often wonder about the possibility of using their resources for causes close to their heart”, Mélanie continues.
The various players involved
Once the legal and tax aspects of the transfer have been established, clients will be able to raise more specific issues with their private banker, such as choosing solutions, identifying beneficiaries, and dividing up assets.
This second stage must include a meeting with an external advisor (e.g. tax consultant, lawyer, notary), who will establish the asset management strategy and put it into practice. The wealth engineer is not there to give legal or tax advice or opinions.
Take the drama out of inheritance
The prospect of succession may be difficult for the person looking to pass on their assets, and the same is true for those who will inherit. To maintain harmony within the family, it is essential that each member understands the wishes, constraints and aims behind the arrangements.
It is with this in mind that BGL BNP Paribas Banque Privée involves beneficiaries in the thought process as early as possible.
“The sooner the beneficiary is involved, the better they are prepared to manage and develop the assets passed down. It is this planning and support that our clients appreciate, as it means they can transfer their assets on the best possible terms,” Mélanie explains.
Changes in European legislation mean that in order to support clients in this process, it is necessary to thoroughly understand the tax and wealth management regulations specific to each country of residence. An asset engineer, who is familiar with all the subtleties of national legislation, is a valuable ally in this context.
Want to know more about our private banking services? Go to bgl.lu/en/private-banking