The Great Wealth Transfer in an Age of Instability: Why Jurisdiction and Governance matter more than ever

Fairway is proud to have our work published in the ThoughtLeaders4 High Net Worth Magazine, Next Gen Wealth Edition, Issue 20. Fairway's Managing Private Client Director, Mark Andrews, discusses navigating the great wealth transfer in an age of instability and how the role of jurisdiction and governance matter more than ever. 

Read Mark's insights below:

Over the next two decades, an estimated $84 trillion will pass from one generation to the next in the largest intergenerational transfer of wealth in history. But this is no ordinary wealth transfer. Unlike previous handovers, this one is unfolding in a period of profound geopolitical uncertainty, shifting tax landscapes, and rapid technological disruption.

For high‑net‑worth families, particularly those with multi‑jurisdictional lives and assets, the challenge is no longer simply how to pass on wealth efficiently. It is where and under what framework that wealth should be held to preserve it for the long term.

In this environment, jurisdiction and governance have become the twin pillars of successful succession planning. And for many global families, Jersey offers a compelling combination of stability, expertise, and internationally respected regulation.

A Wealth Transfer Like No Other

Previous generational shifts, from the so‑called Silent Generation to Baby Boomers, took place in comparatively stable times. Economic cycles rose and fell, but the global order felt predictable. Today’s transfer is different. Families now face a convergence of disruptive forces:

• Political volatility in major economies such as the US and across the Middle East.
• Tax policy uncertainty, with governments under pressure to increase revenue, leading to sudden changes in wealth, inheritance, and capital gains tax regimes.
• Fragmented regulation and increasing compliance burdens for cross‑border structures.
• Shifting values and priorities among younger generations, who often choose to focus on sustainability, social impact, and technology investments.

These trends make the traditional “set and forget” approach to wealth structuring insufficient. Resilience, not just efficiency, must be at the heart of planning.

Why Jurisdiction Matters More Than Ever

The legal and regulatory environment in which wealth is held is a form of risk management in itself. The location of structures can determine not only the tax and compliance obligations of a family, but also how protected their assets are from political, economic, or legal shocks in their country of residence.

In recent years, we have seen governments around the world introduce sudden increases in reporting requirements, and in some cases, restrictions on the movement of funds abroad. Banking crises and currency devaluations have further highlighted the importance of the stable jurisdictions.

Jersey stands out as a trusted international finance centre (IFC) for several reasons:

• Political and economic stability as a self‑governing jurisdiction with over 800 years of constitutional independence.
• A robust and modern legal framework for trusts, foundations, and companies, designed to meet the needs of global families.
• International recognition and compliance with OECD, FATF, and EU standards.
• Proximity to London and Europe, with strong professional infrastructure.
• A significant talent pool of fiduciary, legal, and investment experts.

For families navigating instability in their home countries, Jersey can be a safe option, a place where wealth is managed under clear rules, protected by a respected judiciary, and supported by a mature regulatory environment.

St Aubins, Jersey, Channel Islands

The Governance Gap

While jurisdiction determines the framework in which wealth is held, governance determines how that wealth is managed and decisions are made across generations. Without a clear governance structure decision‑making can become fragmented as more family members become involved. Disagreements can escalate into disputes, putting both assets and relationships at risk and wealth can be eroded by inconsistent investment strategies or unclear responsibilities.

Effective governance frameworks typically include:

• Defined roles and responsibilities for trustees, family council members, and beneficiaries.
• Clear decision-making processes to address investment strategy, distributions, and philanthropic commitments.
• Conflict resolution mechanisms to deal with disagreements without damaging family unity.
• Succession of stewardship; preparing the next generation to manage assets and the family’s legacy.

Governance is not a one‑size‑fits‑all process. It must be tailored to each family’s culture, values, and objectives, and it should evolve over time. 

Aligning Wealth with Values

A key shift in this wealth transfer is the emphasis on values. Many in the next generation view wealth not just as a means of personal security, but as a tool for creating positive impact.  We are seeing increased interest in purpose‑driven investing, such as ESG and impact investing. We are also seeing more philanthropic structures that allow families to make a tangible difference as well as many providing entrepreneurial funding for innovation, technology, and sustainable ventures. Embedding these priorities into governance frameworks ensures they are not just personal preferences of the current generation, but part of the family’s enduring legacy.

Fairway's Perspective

At Fairway, we work with families whose lives and assets span multiple jurisdictions, sectors, and generations. Our role is to ensure that both the framework and the functioning of their wealth structures are robust, resilient, and aligned with their long term vision, not just for today, but for decades to come.

These conversations extend well beyond tax and legal technicalities. They are about safeguarding legacy, maintaining family unity, and preparing the next generation to take on stewardship with confidence and purpose. The earlier these discussions begin, the greater the likelihood of a smooth and successful transition.

The great wealth transfer is already in motion. For some families it will be a gradual process; for others, sudden events, from political unrest to unexpected loss, may bring it forward unexpectedly.

That’s why it’s worth taking steps now to:

• Review the jurisdiction where wealth is structured, ensuring it offers both stability and the right legal protections.
• Evaluate governance arrangements to confirm they remain relevant to the family’s circumstances and long‑term goals.
• Engage the next generation in open dialogue, providing opportunities to learn, contribute, and understand the responsibilities that come with stewardship.