Quick insight series – Advising Ultra-High-Net-Worth Families

Date: 07 May 2025

Karen Jones

Quick insight series with Costas Kallideris, Head of Private Clients, PwC, Greece

Advising Ultra-High-Net-Worth Families

How do you manage the challenges of family dynamics when advising UHNW clients, especially across multiple generations?

It is essential to be trusted and accepted by the entire family as an objective advisor when advising Ultra-High-Net-Worth Families. To achieve this, it is necessary to understand the different approaches, needs and priorities of each generation.

What role do family values play in wealth management decisions? Can you give an example where these values shaped a key decision?

When an asset is intended for joint ownership or represents a family legacy, it is imperative that all beneficiaries uphold family values. In a particular case, a family leader appointed the younger siblings to succeed him in the family business due to their adherence to these values, while providing the older sibling with funds to establish a new venture. This approach proved successful for all parties involved.

How do you help families communicate about wealth management and succession planning?

Family discussions are needed to share thoughts, shape principles, and define roles in managing wealth. We understand that each family member’s priorities may differ but can coexist. Once we find a common path, we document the principles and adjust ownership structures accordingly.

Have you helped set up family governance structures? What are the key elements of a successful one?

We have advised several families. The challenge is to design effective mechanisms that eliminate the possibility of conflicts and prevent deadlocks. Additionally, it is crucial to ensure that any agreements among family members are enforceable.

How do you handle situations where younger family members have different financial goals or risk preferences than older generations?

In situations where there is no interest in managing the traditional family business, which often has generated the wealth of the family, we propose the business continuity relying on trusted professionals keeping for the family members a more passive role through shareholdings generating dividends. Alternatively, a setup is designed to facilitate the sale of the business when the older generation retires from leadership.

Family conflicts often arise during wealth transitions. How do you manage disagreements about wealth distribution or management?

It is understandable that the family leader may be influenced by certain family members who might act in their own interest. In such situations, assessing the family’s assets can help determine their value and guide the family leader towards equitable distribution. Our priority, whenever possible, is to maintain separate ownership of all leisure assets upon succession.

Can you share a challenging family conflict related to wealth or succession, and how you helped resolve it?

A conflict among the cousins in a third-generation family business negatively impacted the company. A buyout of shares from cousins who had less interest in the business was suggested. The process of determining a fair value among family members proved challenging, but an agreeable evaluation methodology was ultimately established.

How do you address differences between generations on issues like legacy, social impact, and aligning wealth with family values?

We address generational differences by encouraging open discussions that allow each member to express their views and opinions.  In this way, we ensure that all voices are heard. Our approach involves integrating these diverse viewpoints, bridging gaps and creating a unified approach of the family as regards legacy, family principles and social impact.

Can you tell us about a family that faced an unexpected crisis, like the sudden death of a family leader, and how you helped them manage the transition?

When an individual passes away intestate, heirs are designated, and their shares are determined by law. Heirs have a limited period to renounce it. We dealt with a case of a secretive family leader who suddenly demised in his early 60s. One of the most challenging aspects for us was identifying the assets owned directly and indirectly and assessing any potential liabilities, particularly in relation to tax authorities and third parties. After conducting comprehensive legal and tax due diligence, we assured the young heirs that no exposure existed, enabling them to confidently proceed with the inheritance acceptance process.

How do you prepare UHNW families for the unexpected and ensure their wealth plans remain strong during times of crisis or sudden change?

When advising Ultra-High-Net-Worth families, the basic succession tool in Greece is the Will. In complex succession cases, we also propose succession tools like the Trust and the Foundation for assets located outside Greece. Establishing a Family Constitution and incorporating it into the corporate governance framework of family assets ensures a seamless succession process. This creative approach provides peace of mind to the family leader by maintaining harmonious family relationships and ensuring the continuity of assets ownership.

Tell us about Greece and the residency program and why UHNW are choosing to move there? 

The Greek tax residence program requires an investment of EUR 500K and the payment of an annual lump sum tax of EUR 100K. Applicants can include their spouses, parents, and children for an additional EUR 20K each. UHNWIs relocating under this regime are subject to taxation only on their Greek income. Additionally, non-Greek assets inherited or gifted to them outside Greece are not subject to Greek inheritance or gift tax. The families we assisted in relocating in Greece under this regime enjoy predictability from the tax authorities, high standards of living and investment opportunities. UHNWIs of Greek origin were among the first who applied for the regime back in 2020. However, in the last two years we receive many requests from both EU and non-EU nationals. The latter often combine applications for golden visa and the UHNWI tax residence regime.

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