The technical complexities of wealth planning are well-known – if not always well-understood.

After all, in the last few decades the wealth planning industry has expanded in scale (and sophistication) to better serve clients in a changing world and regulatory landscape.

But despite all this activity, there is another side to wealth planning that isn’t often discussed: the emotional.

We spoke to our newest partner Nadina Hediger, a financial advisor and trustee with 20 years of experience, about how she helps clients navigate the technical and emotional aspects of wealth planning.

 

1. How did your interest in wealth planning begin?

My career in wealth planning and trust started somewhat unexpectedly. Initially, I worked with one of Switzerland’s largest financial service providers – my role involved client and family advice, though I didn’t proactively offer advice myself. 



The turning point came when I transitioned to the trust team at a smaller, private bank. I was able to see the “other side of the coin” and understand the vital role trusts and fiduciaries play in wealth and succession planning. (Even if this service was sometimes seen as “additional”, rather than critical.)


Over time, especially after the global financial crisis, I wanted a role where I could offer personalised, proactive advice to my clients, in the capacity of their trust advisor. It’s a role that aligns with my professional skills – but one that also resonates with my passion to help clients navigate the technical and emotional complexities of wealth.

 

2. What do you think are the main challenges in your role?

I advise families from diverse backgrounds, from all over the world.

But no matter the situation, I think the biggest complexity is how to balance personal needs and the regulatory landscape. In other words, how to balance the emotional and technical aspects.

This balancing act has become more complex as wealth owners (and their families) increasingly move across different borders.

An individual may work in London, but live somewhere else. A child may grow up in the family home but move to study in the US. When a family situation changes, the existing structure needs to adjust too. (Ideally with enough time to anticipate and plan exactly how it adjusts.)

Another challenge is how to engage younger family members, who may feel distant (even disconnected) from their family’s original wealth creation. This generation may have very different ambitions and may not be interested in managing the family business.

But every generation has a responsibility to preserve and protect what’s come before – not only the family business, but also its employees. Helping younger wealth owners understand and appreciate this responsibility – and how it might align with their own interests – is something I really enjoy.

 

3. How do you engage younger members in the wealth planning process?

In my experience, some younger members might be inclined to see an advisor as “their parents’ advisor”.

I think the starting point should be empathy. It’s important to put yourself in the shoes of the younger generation, and ask questions like:

• Do they want to be involved in the family business?
• How does the business fit with their own aspirations for their education and career?
• Are they feeling overwhelmed by the responsibility of preserving and protecting their family wealth?

It’s worth saying that it isn’t only younger members who might be resistant to advice. The founding members of the family business may believe they know their business (and their wealth) better than anyone else – even an external advisor.

Whatever the generation, it’s important to approach these conversations with openness and understanding. Once a client feels you understand their own perspective and situation, I find the conversation becomes much more productive.

 

4. When do families need to have these sorts of conversations? What are the flashpoints?

In general, these conversations usually take place when a family member – or part of the family business – changes geographical location. Moves like this can have significant (and often unanticipated) consequences for a family’s wealth plan.

I would always encourage my clients to think proactively about such moves. Of course, life is full of surprises. But if your advisor only finds out about such a move two weeks ahead of time, this limits their ability to adjust existing planning arrangements.

 

5. How do you balance the technical and emotional aspects of wealth planning?

It’s all about interpersonal skills.

Our industry has grown much more complex than when I started out. As such, it’s important that an advisor’s ability to guide, explain, and empathise with a client keeps up.

For example: when I began my career, opening a bank account often required no more than a form of one or two pages. Now, doing so requires a sophisticated understanding of regulatory requirements, a detailed conversation with clients and beneficiaries, and potentially twenty or thirty documents to be signed.

That’s where interpersonal skills come in. An advisor must explain what’s happening to the client – and make clear what it means for their financial and legal status. Ultimately, no matter how well an advisor explains these complexities, a client needs to trust that they are doing the right thing.

 

6. Do wealth owners or families ever get confused or frustrated in these moments?

Sometimes – and it’s very understandable. For some individuals, these complexities may feel like a totally different language.

That’s why emotional intelligence is so important. It’s why it’s important a client can trust their advisor to react to any changes.

And it’s why empathy is so important. I always encourage members of my team to imagine how they would feel if they were the client – and if they had little understanding of the regulatory environment.

If they were to receive such an email, or such a piece of advice. Would they understand what they were being told? Would they feel reassured and guided?

Finally, it’s essential for an advisor to have an extremely high level of knowledge and experience of the regulatory landscape.

That isn’t always easy, of course. But it’s our job to make sure that – as the client advisors – we’re up to speed with the latest changes, and what they might mean for their existing structures.

 

7. How do you build an ecosystem of trust and accountability?

The most important thing is to build clear governance policies for the families. This is a lengthy process, requiring much conversation and education, but it absolutely must be there.

Once those policies are in place, a wealth owner and their family shouldn’t only feel more comfortable – they should feel confident they know how to function in the future. For example: if they receive an offer for the business, or if there is a geopolitical event, they know how to respond.

Likewise, it’s also important to set up regular reviews and audits. This enables clients to understand and appreciate their advisors’ transparency and accountability.

Ultimately, this helps them to appreciate the value you bring – why you’re here, why you’ve made certain decisions, and how you help them to navigate the complexities of wealth planning.

 

8. What about a situation where both family members and external advisors hold roles of influence?

That’s a good question. A family will often have several advisors – like legal or financial advisors – who hold positions of influence within an ecosystem.

In such situations, I think it’s important to have clear, open communication between all parties. And it’s important to respect everyone’s area of expertise and integrate their insights to form a cohesive strategy. As a trustee, you need to incorporate the advice of legal advisors, business managers, and other specialists to make sure that all pieces of the puzzle fit together seamlessly.

At the same time, it’s important for each advisor’s role to be clearly defined and respected. Which takes me back to the importance of having strong governance policies. Such policies help everyone understand their responsibility and the value they bring to the table, facilitating smoother collaboration and more effective decision-making.

 

9. How do you convince families of the value of investing in wealth planning?

I work with scenarios to illustrate the long-term impact of their decisions.

I say to my clients: look at your family today. You have four children. Let’s imagine each has two of their own children. Now you have eight grandchildren. And let’s imagine those grandchildren also have two of their own. Now, you have sixteen great grandchildren.

What does your legacy look like for these generations? What will you leave behind? A strong, stable ecosystem, or one that encourages disagreement and conflict?

Some people may see these as decisions for the far-off future. Others will realise that such a scenario isn’t improbable – and that without action, they may leave a destructive legacy behind.

It’s a bit like fast-forwarding through a movie to the end. A client can see the conclusion – if they don’t like it, they have time to change it.

If you’d like to speak with Nadina about how she might help you or your clients, please email nadina.hediger@conduct.swiss