The report comes out as countries grapple with changes in economic, political, and tax policies
Global trust and estate practitioners’ association STEP has examined wealth and tax attitudes worldwide in its “Attitudes to Wealth” report.
According to the association, this is the first STEP survey of its kind. The report comes out as countries grapple with sudden economic, political, and tax policy changes.
UK-based STEP spokesperson Catherine Grum noted that clients prioritized protecting their legacy for current and future generations.
“What is also apparent is that attitudes are not uniform with some clients taking steps to limit their wealth accumulation. The same is true in relation to their views of taxation.” Grum said in a statement.
She also indicated that clients “have a more negative than positive attitude to tax”; nonetheless, “more than one in 10 reported a more positive attitude towards taxation.” A large chunk of practitioners reported that clients actively shot declined tax reliefs.
The report showed that the tax exposure mitigation is not the most impactful factor for clients, who are transitioning to an approach that balances long-term wealth planning with efficiency and compliance. The report also suggested that generational differences could spur new tax planning approaches and transform tax-related language.
“There's a clear rise in social responsibility, particularly among younger clients. It's encouraging to see advisors routinely broach philanthropic giving. There remains significant potential to embed these discussions at the core of wealth planning, aligning financial decisions with personal values and purpose,” Grum said. “Over the next decade, we are likely to see a significant shift in client attitudes, amid rapid technological advances, geopolitical risks and evolving tax policies.”
The report results also highlighted a desire for enhanced public and professional education on trusts and related structures to combat misconceptions. There was also a desire to challenge taboos around wealth discussion in families.
“The challenge for practitioners is to adapt and position themselves to support clients across the spectrum. With increasing reliance on AI and automation, maintaining strong client relationships while promoting responsible wealth stewardship will become more critical,” Grum said.
The “Attitudes to Wealth” survey obtained responses from over 900 private client advisors across 86 countries. The full report can be accessed here.
