March 3, 2026
Private Client
Freya Grant
Private wealth is undergoing a generational shift.
Today’s next generation is globally mobile, digitally fluent and values-driven. They are preparing to inherit not only significant assets, but also the responsibility of stewarding wealth across borders, blended families and increasingly complex structures.
They expect transparency and coordinated advice. Yet familiar pressure points remain: divorce, incapacity, second marriages, international parenthood and post-death disputes. They simply arise in more nuanced ways.
What follows is a practical overview of the key legal dynamics shaping modern wealth transfer.
Families often assume trusts sit safely outside the divorce arena. That is not always the case.
Under section 24(1)(c) of the Matrimonial Causes Act 1973, a trust benefiting a spouse or children may be treated as a “nuptial settlement”, giving the court power to vary it on divorce — even where its original purpose was long-term wealth preservation.
Nuptial agreements are therefore increasingly central. Agreements that satisfy the principles in Radmacher v Granatino will generally carry weight, but they are not automatically binding. Transparency and full disclosure remain critical, and the court retains ultimate discretion.
For internationally connected families, complexity increases. An agreement effective in England may not be recognised elsewhere. Residence, domicile and asset location all matter.
Surrogacy, dual nationality and cross-border living create additional legal layers.
Under UK law, the surrogate is the legal mother at birth. Intended parents must obtain a parental order within six months. Where surrogacy takes place abroad — frequently in the United States — immigration and nationality issues can delay the process.
Citizenship can also be less straightforward than families expect. A child born abroad to a British citizen by descent does not automatically acquire British citizenship. Early immigration advice can prevent significant later disruption.
As wealth transitions, the next generation often becomes more involved in supporting older family members.
Under the Mental Capacity Act 2005, capacity is decision-specific. Lasting powers of attorney (LPAs) offer continuity and flexibility; without them, families must seek deputyship through the Court of Protection — a slower and more burdensome process.
Gifting and tax planning require care. Attorneys face strict limits, and local authorities may challenge transfers under deprivation-of-assets principles where care funding is in issue.
Where beneficiaries have lifelong support needs, outright inheritance can cause unintended consequences. Disabled persons trusts or discretionary trusts may provide more suitable protection.
Second marriages bring joy — and legal complexity.
Marriage revokes an existing will unless it anticipates the marriage. Failure to update documentation can unintentionally override previous intentions.
Where reasonable financial provision is not made, claims may arise under the Inheritance (Provision for Family and Dependants) Act 1975, subject to strict time limits.
Informal family assurances — financial contributions, promises of security — can also give rise to proprietary estoppel disputes if expectations are later disappointed.
Clear documentation and regular review remain the most effective safeguards.
For the next generation, proactive planning is no longer a luxury. Coordinated advice across family, private client, immigration and tax disciplines is increasingly essential to preserve both wealth and relationships.
Early, integrated review can significantly reduce future uncertainty — particularly where structures, cross-border elements and intergenerational transitions intersect.
