Luxury asset management and succession planning are sophisticated fields that require not only a deep understanding of high-value assets but also the ability to navigate complex legal and tax landscapes.
As the wealthiest individuals continue to diversify their portfolios, the need for specialised services becomes paramount.
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By GlobalDataTracey Neuman, private client executive at Ocorian, and Jaclyn Sienna India, founder and CEO at Sienna Charles, a prominent luxury lifestyle consultancy, offer a comprehensive look into the strategies and services they provide to the ultra-wealthy, ensuring both the preservation and smooth transfer of assets.
With a portfolio that spans art, real estate, yachts, and jewellery, Ocorian’s approach to managing and ensuring the seamless succession of these assets is both comprehensive and nuanced.
Comprehensive Services for Luxury Assets
Ocorian offers a full suite of luxury asset management services, setting itself apart through a fearless approach to handling a wide variety of assets.
“You name the luxury asset; we look after it. What differentiates us from other companies is that we’re not scared to hold it,” says Neuman to PBI.
Unlike many trust providers who prefer managing straightforward investment portfolios, Ocorian embraces the complexities that come with luxury assets.
“A lot of trust providers only really want to hold investment portfolios that are backed and managed by professional investment managers because that’s easy. There are never questions around insurance, funding, staff, and all those sorts of things, but we deal with that,” she explains.
This hands-on approach includes managing everything from domestic staff transfers under specific employment regulations to ensuring that the reorganisation of family entities does not negatively impact long-serving staff members.
Neuman highlights: “I have just facilitated a transfer of domestic staff from one client entity to another, in accordance with the Transfer of Undertakings (Protection of Employment) Regulations in the UK. We had UK staff employed via a Guernsey company, which we’ve just transferred to a different entity. It basically means that the employees’ rights continue as if that new entity has always been their employer, so they get a continuation of service on the same terms.”
Sienna Charles’ Concierge Services
At the forefront of this niche market is Sienna Charles, a company that not only meets but exceeds the expectations of its exclusive clientele.
Sienna Charles offers a $150,000 annual membership that not only includes unlimited travel and dining requests but also caters to various lifestyle needs.
Speaking to PBI, CEO of Sienna Charles, Jaclyn Sienna India, says: “These may include hiring staff such as nannies, drivers, private chefs (for events or permanently), yacht captains, and crew.”
The company also provides assistance for clients unfamiliar with luxury yachting or art markets, offering guidance to ensure a seamless experience.
Catering to Different Types of Luxury Assets
Neuman points out that the management of luxury assets is highly specific to the type of asset and its intended use.
“Catering to luxury assets is horses for courses, and it depends on what they want them for,” she says. Whether it’s a family yacht or a chartered vessel, Ocorian’s solutions are tailored to meet diverse requirements.
Similarly, for art investments, considerations about storage, display, and tax implications are thoroughly addressed.
“The location of the assets is also key, particularly with something like art, as they can be moved between different jurisdictions. This not only necessitates an understanding of the transport requirements and insurance, but also tax, as there could be import duty to pay or tax consequences for the structure or beneficiaries. This may result in a need to rethink plans or to think outside the box. It may be better from a tax and insurance perspective to have a copy on your wall and keep the original somewhere safe,” suggests Neuman.
Sienna Charles’ Expertise in Art and Yachting
Sienna Charles emphasises the importance of providing support for clients venturing into new territories like yachting and art.
“Despite their immense wealth, many UHNWIs are unfamiliar with the intricacies of yachting and hesitate to start for fear of being exposed as novices,” she notes.
Her team ensures that clients are matched with the right yacht and crew, and also connects them with independent art dealers or historians for a seamless art acquisition process.
Client Onboarding and Interaction
Ocorian’s onboarding process is meticulous, involving verification of ownership and obtaining recent valuations for insurance and assessment purposes.
Neuman stresses the importance of ongoing communication.
“We’re regularly in contact with all of our clients and we provide dedicated relationship managers for all of our high-net-worth individuals (HNWIs),” she says, underscoring the importance of a personalised touch in their client relationships.
The onboarding process at Sienna Charles is precise and personalised. It begins with a 90-minute interview directly with India, designed to assess the client’s needs.
Afterwards, clients sign a non-disclosure agreement (NDA) to ensure secure handling of their documents and information.
“Our onboarding process begins with a comprehensive interview to understand our client’s lifestyle, preferences, and expectations. This personal touch ensures that our clients feel valued and understood from the start,” India explains, underscoring the company’s client-centric approach.
What sets Sienna Charles apart is its membership mentality, which underlines transparency, trust, and a deep personal connection with clients.
“We do not overcharge our clients. No matter if we serve someone with a $100m or $100bn net worth, there are no mark-ups or hidden fees. We value our long-term relationships based on transparency and trust,” says India, highlighting its commitment to ethical practices.
Its commitment to learning and understanding each client’s preferences means members don’t need to repeat their needs with each new request.
“Our response time is just five minutes. With this unparalleled timeframe to acknowledge the request and an internationally located team working 24/7, we are much ahead of any ultra-luxury concierge service in the industry,” India notes.
Asset Management Practices
As directors or trustees, Ocorian’s role is to manage and preserve the value of luxury assets responsibly. “We have the responsibility for these assets in the same way as any reasonable, prudent owner,” Neuman explains.
This involves leveraging cutting-edge technologies and practices to track and manage the assets effectively.
The team at Sienna Charles acts as a conduit between clients and asset management consultants, ensuring that the right expertise is brought in to manage the assets.
India explains: “We act as a bridge between clients and asset management consultants. Once we successfully connect them and receive positive client feedback, the consultants take over the client’s request.”
Security Measures and Risk Management
“I will focus on privacy rather than just digital protection,” Neuman says.
“By structuring a lot of these assets so that the registered owner isn’t the high net worth individual, the ownership is under our name with a big corporate address. This way, a degree of privacy can be maintained,” she explains, noting that this strategy is crucial for mitigating risks associated with high-profile ownership.
Protecting the physical and digital security of luxury assets is paramount. Ocorian implements measures that go beyond standard digital protection, focusing on privacy and risk mitigation.
Sienna Charles provides specific solutions for protecting luxury assets during travel, such as chartering private jets with superior temperature and humidity control for transporting valuable goods.
India states: “We help our clients protect their physical luxury assets in specific circumstances, for instance while traveling with art, jewellery, wine, or spirits, both domestically and internationally. Private jets we charter for our members allow them to transport valuable goods without risking damage. The jets offer superior temperature and humidity control, safeguarding the artwork, and specialised contractors handle high-value cargo wrapping and crating in temperature-controlled packaging. Moreover, while traveling private, customs clearance is expedited through onboard or private terminal processing.”
Legal and Structural Considerations
Choosing the right legal structure is crucial for the succession of luxury assets. Neuman recommends trusts and foundations as flexible and adaptable options.
“Usually, trusts are very good because they are brilliant succession tools and are very flexible, allowing for regular updates. Similarly, a foundation might work better for civil law jurisdictions. Both of these structures’ welcome guidance from the wealth creator and are sufficiently adaptable to allow for future legislative or regulatory change without necessarily the need for full-scale restructuring,” she notes.
Corporate structures, while an option, tend to be less flexible.
“You can use corporate structures, and some people prefer that, but generally, a corporate structure is less flexible. You have to ensure the next generation of shareholders have appropriate rights as shareholders. This may involve creating different share classes to limit voting rights, for example.”
Disaster Recovery and Partnerships
Neuman emphasises the importance of planning for unforeseen events, ensuring that all luxury assets are well-protected and that clients have peace of mind.
Meanwhile, preparedness is a key component of Sienna Charles’ service. They collaborate with vendors who have excellent track records and are fully insured, providing clients with peace of mind in the event of unforeseen circumstances.
“All the vendors we work with have excellent track records and full insurance, ensuring our clients’ assets are protected no matter what,” India affirms.
Moreover, Sienna Charles’ success is encouraged on the foundation of strong partnerships with specialists such as art appraisers and real estate experts. These collaborations enhance the company’s offerings and ensure that clients receive the highest level of service tailored to their specific needs.
It builds its business around partnerships with personally vetted vendors.
“We constantly monitor client satisfaction and feedback to make sure that the vendors stay on top of their game to meet the demands of the world’s most discerning clientele,” says India.
The Challenge of Succession
Succession planning for luxury assets is a complex and sensitive issue that requires careful strategy and planning. Ocorian’s approach involves detailed discussions with clients to understand their wishes and educating the next generation to ensure a smooth transition.
“Anything we own in a trust would have a letter of wishes that sets out what the original founder intended for those assets and how they want them to be used,” Neuman explains.
“If it is a company, there will invariably be some form of shareholders’ agreement and guidance as to the use of the assets. There are lots of binding and non-binding agreements and guidance that can be put in place, and we regularly update those because things change.”
Ocorian’s comprehensive approach to luxury asset management and succession is rooted in decades of experience and a commitment to detailed, personalised service.
The team at Ocorian has been trusted with managing and securing high-value assets for over 25 years, ensuring that the structures holding these assets remain in good standing.
“Our expert directors are chartered and certified accountants, chartered secretaries, lawyers, and chartered tax advisers,” Neuman says. “They make sure the structures that hold your assets remain in good standing.”
The luxury asset management and succession planning industry is rapidly evolving, with firms like Ocorian and Sienna Charles setting new benchmarks through their bespoke and comprehensive services.
By focusing on the unique needs of each client and leveraging a network of expert partners, they ensure that the world’s most valuable assets are not only well-maintained but also smoothly transitioned to future generations.
