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Indian Wealth Management Forum 2019 - Exclusive Insights - Shweta Shah - 2

Shweta Shah

Head - Wealth Structuring & Tax

Edelweiss Private Wealth Management

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  • 1. What are the biggest trends in wealth structuring and planning today?

    The process of restructuring could be summed in what (I call the) three M's: The First is the mindset, the second is the manner, and the third is the mental. We can discuss the trends in each of these areas. First is the mindset. By mindset, I mean whether promoters are really open to it, because you could have a succession plan on paper but if the promoter is not really willing to or is not really prepared to (carry out) the intergenerational transfer, then all succession planning will fail. So, first is a mindset, and we see that many patriots, many business owners now are open to discussing what they want to do with respect to succession; Discussing it internally with their family members or discussing it with their advisors, as well. Things like (for example) the younger generation may want to pursue a different interest, like women want more power in the business if they deserve it are all coming forward. So, we see a mindset change there. The second M is the manner. By manner, I mean it's a broad framework of what the family will do once they have decided that they will do succession planning. Of course, the changes that the business owners are (proposing) are given a lot of serious thought. They are planning from day one as to whether the younger generation should be inducted right away, or they should have some experience outside the family business and then join us. So, it’s basically the entire framework. And we see a lot of changes there. Third is the method, which purely is the mode in achieving the manner. The method would mean doing a will. Apart from a will, the most commonly used structure now is a trust. Also, families who have assets overseas, they form overseas trust structures and foundations. Having a family constitution and a counsel are also becoming very common. In a nutshell, I think we are evolving to (meet) the global standards.