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Strategic wealth planning
How to pass on your wealth to the next generation in a targeted and lawful manner – with planning, foresight and clear communication.
How you pass on your wealth is one of the most important and sensitive financial decisions you will ever make. You’ll need to consider not only legal and organizational questions, but also relationships, expectations and family values. If you want to avoid conflicts, you should develop a clear plan and a common understanding of goals and roles early on. A well-planned transfer combines financial clarity, legal certainty and open communication to provide a stable foundation that sustainably protects your wealth.
Family wealth may include a variety of assets, each of which have specific implications for estate planning, tax treatment and long-term planning. Real estate, securities, business shares, cash or collections are common forms of family wealth. Each of these categories has its own characteristics, which you will need to consider when transferring assets nationally or internationally. Each also differ greatly in terms of how easily they can be structured and passed on from generation to generation.
Real estate is a traditional part of family wealth and plays a central role when passing assets on to the next generation. It offers stability, potential appreciation in value and returns. At the same time, real estate is often highly charged emotionally. When transferring property – whether as a gift, an advance inheritance or after a death – several factors come into play: the current market value, potential tax implications, ongoing maintenance needs and how the property fits into your overall succession plan. Transparent evaluation is equally important so that all parties involved have the same expectations and future owners are involved at an early stage.
Securities such as shares, funds or bonds are usually easier to transfer and are among the simplest and most flexible types of assets to accumulate. Through regular saving and systematic investment, these can grow efficiently over the years. The question of tax optimization is also crucial – especially when inheritance or gift taxes may apply later on. The future investment strategy of the heirs is just as important: Should the assets be invested for the long term, diversified or partially liquidated?
Company shares add another layer of complexity. When planning succession for a company, you should give careful consideration to governance, voting rights, management structures, liquidity and the long-term future of the business. Generational planning is also important: Who should take over the company? And what roles will other family members play?
Liquidity creates flexibility. Preserving sufficient liquidity can be vital, especially in multi-stage transfers during your lifetime, or to cover taxes, equalization payments or maintenance costs. Liquidity allows you to avoid having to sell assets like real estate or business holdings in haste. Liquid assets are also among the fastest and easiest to build up – whether through savings plans, pension solutions or by building up regular income reserves.
Tangible assets such as art, jewelry or collections require a professional valuation, especially when they carry both emotional and financial value. They can make estate planning much more complicated if heirs have different expectations or if it is hard to divide them fairly.
The more diverse your assets, the more important it is to take a systematic approach to legal planning, tax structuring and succession planning. Careful generational planning helps families divide up their assets in a way that preserves wealth over the long term and benefits future generations. At the same time, a solid financial plan is the foundation for ensuring that generations who are doing the giving and the generations who are receiving are both secure.
There are many ways to transfer wealth, and each has its own tax, legal and family-related implications. The key to success is a holistic wealth plan such as the UBS Wealth Way approach, which assigns your total wealth to three strategies: liquidity, longevity and legacy. Only when the financial resources for your current standard of living (liquidity) and for long-term provision and security (longevity) are guaranteed can surplus assets be used specifically for transfer (legacy).
Figure 1: The wealth strategy “Liquidity.Longevity.Legacy”.
UBS Wealth Way is more than just a snapshot. Rather, this approach enables you to develop and plan your wealth for the long term. Our approach means you can look to the future with confidence and react flexibly to changing circumstances.
At the heart of the process are two key decisions:
Transferring assets during your lifetime – through gifts, advance inheritance or phased transfers – offers many advantages. It creates transparency, allows for clear agreements and lets you take advantage of tax opportunities early on. You can also address organizational questions in sufficient time, especially with complex assets like real estate, business holdings or large portfolios.
One advantage of transferring assets during your lifetime is flexibility: Assets can be transferred in stages, allowing you to take tax implications and the financial situation of the next generation into account. This staggered approach is particularly helpful in the case of real estate or shareholdings, as it helps to secure liquidity and avoid sudden financial burdens.
Legal regulations will initially apply if assets are only transferred after death. However, a will or inheritance contract can be used to structure the estate more to your liking. A will offers individual flexibility and can be amended at any time, while an inheritance contract creates mutually agreed and legally binding arrangements. At UBS, a complete estate plan usually takes between 6 and 18 months to complete. The goal is to find a solution that meets legal requirements and also gives due weight to family needs and long-term financial goals.
For larger estates or international family structures, foundations and trusts are additional ways to structure and manage your wealth. They enable:
Trust structures play an important role, particularly in international asset transfers, as they help to manage and protect assets consistently across several generations.
Regardless of the approach you choose, professional preparation is essential. This includes:
This will ensure the transfer is legally sound, tax-efficient and aligned with your goals – laying the groundwork for future succession planning.
Figure 2: Types of transfer at a glance
Early and forward-looking succession planning is crucial for a smooth transfer of assets. It encompasses much more than legal documents: Roles, expectations and family goals need to be discussed openly to prevent conflicts later on. Involving the next generation early on – whether in investment decisions, real estate matters or business responsibilities – is especially helpful. This approach creates a shared set of values and a sense of responsibility that strengthens the long-term stability of family wealth.
Figure 3: Considerations for parents regarding inheritance
Tax and legal regulations play a major role in how efficiently assets can be transferred – and these rules can vary widely between cantons and in international situations. That’s why it’s important to plan thoroughly, taking into account taxes, compulsory shares, marital property law and the formal requirements for wills or inheritance contracts. Especially with regard to real estate, securities or company shares, the wrong decisions can have long-term financial consequences. Professional advice helps minimize risks and ensures your wealth is transferred securely and in line with your family’s wishes.
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A well-planned transfer of wealth is a strategic process that harmonizes financial, legal and family considerations. Starting early creates clarity, helps prevent conflicts and lays the foundation for long-term wealth protection. Gradually involving the next generation is part of this process. The best way to transfer wealth – whether through inheritance, gifts, lifetime transfers or using foundations and trusts – depends on your individual situation. If you approach this process consciously and seek professional guidance, you ensure that your wealth will not only be transferred but also preserved and meaningfully continued – today, for the next generation and beyond.
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