Beatrice Puoti is Head of the Private Wealth team at Burges Salmon. She primarily focuses on international tax, trusts, and estate planning for UK and non-UK resident and domiciled clients. She has significantly contributed to the development of the firm’s European tax and trust practice with a particular expertise on Italian issues.

Is the UK becoming more or less attractive to UHWNIs?

Beatrice Puoti: The UK attracts UHNWI individuals for a number of reasons. It is perceived as a safe, democratic country, with a stable court system, a strong financial sector, and an attractive economic environment for business opportunities.

Brexit has had some impact, but does not seem to have caused as many difficulties as expected, probably because of the Covid-19 pandemic.

The UK “non dom” regime has also always been very attractive to UHNWIs and their businesses. This regime has now been adopted, in a slightly modified way, by other European countries, such as Italy and Greece, which are seeking to compete for these foreign investors and their businesses.

If the UK continues to modify and threaten the non-dom regime, it risks being seen as a less attractive country to live in than many other European countries that have different forms of favourable tax regimes for foreign investors, businesses, and individuals, such as Malta, Portugal, Spain, France, Monaco.

What unique challenges do international families face?

Beatrice Puoti: The main threat to international families and their assets is poor cross-border estate planning. This includes wills, planning for the future running of businesses, and agreements on how to share the wealth.

Succession legislation, so different between common law, Roman law and Sharia, means that it is necessary to plan carefully ahead and avoid disputes between family members when the matriarch or patriarch passes away. Ensuring clear and continuous communication and transparency between the generations is the only way to safeguard wealth for the future.

What’s your advice for overcoming these challenges?

Beatrice Puoti: Planning, communication, transparency and involvement. Ensure that the family talk to each other, the wealth maker involves the next generation in planning and decisions, and that there is general “buy in” to future plans. Then the various advisors should set up the right structure around such plans that will take into account the differing laws applicable to the family. These structures must be reviewed with the families regularly to ensure they remain relevant and correct.

What are the most important things for UHNWIs to think about when relocating?

Beatrice Puoti: I advise clients on international relocation for a variety of reasons. The main concerns and determinant factors for most clients are personal and data safety, political stability, tax and business environments, economic stability, courts and the legal system. Language is often very important, along with the availability of international schooling. However, I always ensure that clients enjoy the place they choose to relocate to, as it is imperative that they have a real presence in these countries, for their international planning to be a success.

How have advisors needed to adapt to the requirements of international clients?

Beatrice Puoti: Any advisor of UHNWIs must be a team player with a good network of professionals who work well together in the interest of such clients. In the international arena this is even more important. It is necessary to know the correct and best professionals globally in our sector, so that we can ensure our clients are advised by the best professional advisor in each county where they have an interest.

I am an Italian working in the UK, and I have always practised international tax and trusts. Cultural awareness and sensitivity is at the basis of a successful relationship with clients, as each culture will demand differing priorities. This is one of the aspects I love most about my job.

About Beatrice Puoti

Beatrice Puoti is Head of the Private Wealth team at independent UK law firm Burges Salmon. She is a partner in the firm's Tax, Trusts and Family department, which was named ‘Legal Team of the Year – Large Firm’ at the STEP Private Client Awards 2021/22, the fourth time in seven years the team has seen success in this category. Her primary focus is on international tax, trusts and estate planning for UK and non-UK resident and domiciled clients. She has significantly contributed to the development of the firm's European tax and trust practice with a particular expertise on Italian issues.

About The Lede

This article was originally published in The Lede, Transmission Private’s monthly newsletter that tracks the future of reputation management. Featuring interviews with leading private client advisers from the worlds of law, finance, and accountancy, sign up today to receive the newsletter in your inbox every month.