Navigating the Labyrinth of Family Succession and Offering Comprehensive Wealth Solutions with Tan Woon Hum

In an era where family dynamics are as diverse as the global economy, estate planning and wealth management have evolved into sophisticated disciplines. At the recent Hubbis Wealth Solutions Forum in Dubai, Tan Woon Hum, Partner, Head of Trust, Asset & Wealth Management Practice for leading Singapore law firm Shook Lin & Bok, delved into the nuances of these disciplines, shedding light on the challenges and potential solutions for modern families. From the intricacies of personal relationships to the globalisation of business interests, families today face a myriad of considerations when planning for the future. Understanding these nuances, while staying adaptive and attentive to generational shifts, he reports, is paramount.

Woon Hum began by highlighting the complex family dynamics often present in succession planning, drawing attention to how personal relationships could complicate estate plans. He illustrated with an observation, “Many clients deeply care for their children but often find challenges with their children's choices of partners, leading to potential shifts in priorities over time.” This was particularly true, he noted, when young family members made life decisions that inadvertently impacted estate structures, such as settling in different tax jurisdictions.

The Need for Adaptability

An underlying theme of his discussion was the need for adaptability. Woon Hum mentioned that he often received requests from clients to re-assess estate structures set up by other advisers, especially in light of evolving family situations and the growing global footprint of many families.

Expanding on business diversification, Woon Hum discussed the strategic decisions of businesses, especially those from Asia. He noted that many have expanded their operations beyond traditional hubs, delving into markets like Australia, Singapore, Indonesia and Vietnam. This diversification, he suggested, calls for sophisticated wealth structuring, balancing investment with philanthropic efforts, particularly as newer generations show an inclination towards giving back to the community.

The Importance of Listening and Understanding

Woon Hum then stressed the importance of holistic listening to cater to both older and newer generations. He remarked,

“Offering independent advice tailored to the family's unique needs is crucial, rather than suggesting a standardised solution.”

In response to a question about the patterns of proactiveness among families, Woon Hum noted, “We've had the privilege of engaging with single family offices from various generations. However, 99% of the time, it's the one who signs the cheque that has the final say.” He explained that while they might hear from different generations or branches of a family, it was usually the patriarch, or in certain jurisdictions, the matriarch, who held the concluding interview and gave the final word on matters.

Woon Hum expanded on the varied dynamics he's encountered, saying, “While we've interacted with second or third generations brimming with ideas, the decision-making often remains with the first generation, especially if they are still in their prime and not ready to relinquish control.” However, he also highlighted instances where more foresighted first-generation members, even in their 70s, were willing to engage and transition control to the subsequent generations. The key, he emphasized, was understanding the individual family dynamics. He commented, “It's delicate. Any perceived rush or push from younger generations can be viewed negatively by those holding the power.”

Concluding Thoughts

Bringing his contribution to a close, Woon Hum offered two central points on advising families effectively. Firstly, he stressed the importance of a solid, trustworthy advisory team. “It's vital to have an honest, independent team of advisors who genuinely understand and can offer guidance.” Secondly, when it comes to structures to mitigate potential conflicts or issues, he suggested that while there isn't a one-size-fits-all solution, “Considering asset protection, a trust might be a viable solution that provides discretion throughout one's lifetime.”

Want to get involved in future events? Save the date of our Hubbis Wealth Solutions Forum – Dubai 2024, which takes place on Wednesday 11th September.

You may also wish to save the date of our other Wealth Solutions Forums taking place in 2024 –

• The Hubbis HNW Insurance Summit – Dubai which takes place on Wednesday 1st May 2024.
• The Hubbis Wealth Solutions Forum – Singapore which takes place on Wednesday 5th June 2024.
• The Hubbis HNW Insurance Summit – Singapore which takes place on Wednesday 4th September 2024.
• The Hubbis Wealth Solutions Forum – Hong Kong which takes place on Wednesday 23rd October 2024.

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