When Legacy Meets Law: The High Stakes of Succession

Legacy Succession & Inheritance for HNWIs and UHNWIs in Europe

Picture a historic estate on the French Riviera—lavish gardens, rare art, priceless memories. Upon the patriarch’s passing, decades of careful stewardship crumble overnight as heirs from three countries find themselves locked in protracted legal battles. The family fortune is diced, taxed, and embittered. The culprit? Insufficient succession planning.

This is not an isolated story. Only 12% of European family business leaders believe the next generation is ready to take the helm¹. And, fewer than half have implemented a comprehensive succession plan².

The coming years will see the largest intergenerational transfer of wealth in history, with up to $3 trillion changing hands globally each year; however, for European HNWIs and UHNWIs, even a single conflict involving cross-border inheritance laws or forced heirship oversight can cost respected families millions and, more importantly, fracture their legacy.

This article offers high-net-worth individuals and UHNWIs the insights needed to navigate the European succession maze and secure a legacy that transcends generations.

Why European Legacy Succession Is Uniquely Complex

High-net-worth and ultra-high-net-worth individuals across Europe operate within an environment few outside this circle fully grasp:

Vast, cross-jurisdictional holdings: Modern wealth is rarely limited to one country or legal system.
Evolving family structures: Blended families, international marriages, heirs living abroad, and diverse citizenships are now the norm.
Changing wealth dynamics: From real estate empires to private equity, asset composition is more fluid than ever.

In this environment, succession and inheritance planning is essential.

Heirship laws, taxation rules, and cross-border complexity must all be accounted for to achieve smooth and efficient wealth transfer.

The Challenges Wealthy European Families are Facing

Inheritance Laws

Europe’s inheritance laws vary dramatically. Some countries grant testators significant freedom, while others restrict it through forced heirship, treating children or spouses as mandatory heirs.

Civil Law Jurisdictions (Forced Heirship): In countries like France, Germany, Switzerland, and Italy, the law mandates that a substantial share of an estate must pass to specific heirs, usually children. For instance, in France, between 50% and 75% of assets may be legally reserved for children, severely restricting the testator’s freedom. In Monaco, forced heirship rules vary by the number of children, and the spouse often has no such protection.
Common Law Jurisdictions (Testamentary Freedom): The UK and regions such as Jersey or Guernsey grant far more latitude. Individuals can, in principle, leave their assets as they wish—subject to certain challenges from dependents.
Brussels IV: The EU Succession Regulation (ESR), also called Brussels IV, was introduced to harmonize succession law across participating EU states. In essence, it stipulates that the law of the decedent’s last habitual residence generally governs inheritance, unless the decedent elects the law of their nationality within a will. However, not all EU countries participate, local courts can override chosen laws on public policy grounds—especially for forced heirship—and it does nothing to harmonize tax regimes, which continue to vary significantly. Assets like real estate in countries such as Spain or Italy may still be subject to local forced heirship rules, regardless of the testator’s chosen law.

Legacy Succession in Europe - Inheritance Laws Table_01-1

Variable Inheritance & Estate Taxation

There is no single “European inheritance tax.” Each country sets its rules, rates, and exemptions, sometimes at regional or even municipal levels.

Heirs may find themselves paying tax in multiple countries, on the same assets. The risk of double- or even triple-taxation is real, especially since comprehensive bilateral treaties are rare and the EU does not legislate in this area. Only less than 10% of needed treaties are in place³.

Legacy Succession in Europe - Taxation Laws Table_02-2

Cross-Border Complexity

As family wealth disperses across countries and continents, the challenges of succession planning multiply far beyond local inheritance law or tax burdens, such pitfalls are:

Multiple jurisdictions may claim authority over the same estate, leading to parallel proceedings, contradictory judgements, unfortunate delays, and ballooning legal fees.
Banks and other financial institutions may freeze accounts pending satisfactory proof from every country involved, sometimes for months or years.
Without precise, pan-European or global planning, even the best intentions may unravel in the conflicting interplay of local statutes, tax offices, and court systems.

Failing to anticipate these legal and regulatory fault lines can expose family wealth to dilution, friction, and even years of litigation. Thorough, multi-jurisdictional succession planning is an absolute necessity.

Real-Life Cases of Unmanaged Complexity

The British Expat in Germany

A British national, resident in Germany for over 50 years, excluded his adopted child from his will and explicitly opted for UK law (testamentary freedom). The German court overrode this, enforcing compulsory heirship under German public policy. The result: protracted legal battles, family divisions, and significant loss of control.⁴

The Italian Dynasty vs. French Banking Giant

An Italian family became embroiled in a costly, drawn-out inheritance dispute with France’s BNP Paribas. The mix of Italian, French, and international law created years of litigation, with legal fees eating deeply into the estate. The inheritance became less about legacy and more about paying for ambiguity.⁵

The Pan-European Family and Double Taxation

A Central European HNWI passed away, leaving assets scattered across Switzerland, France, and Spain. Despite prudent tax planning in one country, the heirs faced burdensome inheritance taxes in others due to a lack of double-tax agreements. The result? A tax bill far higher than the value in any single country, eroding the estate by more than 50%.⁶

These stories are warnings for families who believe “it won’t happen to us.”

What Effective Succession Planning Looks Like

Protecting a legacy in Europe, in the context of global families, means more than executing a will. And particularly, for the most affluent, off-the-shelf solutions are a liability. Effective legacy succession requires comprehensive mapping of family, asset, and citizenship footprints. Integrated wills tailored to each legal regime. Coordination of matrimonial property agreements and tax structures. As well as diligent reporting and compliance management across borders.

Using European Structures

Many European jurisdictions, such as Switzerland and Liechtenstein, offer robust foundation structures and trusts that are designed to support both succession planning and asset protection. When thoughtfully established and maintained, these vehicles provide continuity, privacy, and legitimate tax efficiency.

Another common strategy is the use of family holding companies, where ownership of assets is consolidated within a holding entity, often situated in a neutral jurisdiction; this can simplify the transfer of assets to future generations and protect against fragmented claims. In addition, relocating family members or assets to countries like Portugal, Malta, and Cyprus—which offer flexible legal frameworks for succession planning—can be particularly advantageous for international families seeking greater control and clarity over their estates.

Global Protection with UAE-Based Trusts, Foundations, and Structures

The UAE has emerged as a premier solution for wealthy individuals and families, by establishing world-class foundation and structure regimes. These vehicles offer a transformative approach for global families seeking robust asset protection, succession planning, and privacy.

Recent legal reforms allow non-Muslim individuals to bypass traditional forced heirship rules common in many jurisdictions, allowing individuals to distribute assets as they wish. Added to that, financial hubs like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) ensure that confidentiality is paramount as details are kept from public exposure while still meeting global due diligence standards.

Renowned for regulatory clarity and international credibility, the UAE’s legal frameworks are aligned with international best practices, and governed by independent, sophisticated courts. Both DIFC and ADGM have achieved global recognition and membership in leading organizations, giving families and their advisors confidence in the stability and predictability of the jurisdiction.

The UAE is also at the forefront of cross-border recognition, enabling seamless compliance with international regulations, robust anti-money laundering standards, and operational continuity with qualified trust service providers worldwide.

Most importantly, UAE foundations and structures offer solid protection against threats like litigation, creditor claims, and contested settlements by separating asset ownership and placing it under regulated management. These vehicles allow for multilayered governance—appointing councils and guardians to secure family values across generations—and their structures are specifically designed to resist external pressures, enforce asset transfer restrictions, and shield against foreign judgments.

The result is a future-focused, secure, and flexible platform, giving families true freedom and certainty to nurture wealth and values for generations to come.

Bespoke Wealth & Assets Protection by WELF

Legacy should empower, not burden, future generations. This is the guiding philosophy at the core of WELF’s Wealth & Assets Protection for Legacy Succession. Drawing from deep expertise in cross-border legal frameworks and the unique opportunities available through UAE-based structures, WELF directly addresses the challenges wealthy European families face and resolves the pitfalls that often complicate legacy planning.

Our specialists design strategies that insulate assets from external claims, ensure privacy, and foster seamless multigenerational transitions, all while maintaining full compliance with local and international requirements. WELF delivers solutions that place your will and your family’s priorities first.

For a deeper look into these advanced strategies and the principles behind exceptional legacy preservation, we invite you to engage with a member of our team.

Protect Your Legacy, and Success it Efficiently and with Intent

How confident are you that your will or trust will stand up across every country in which you or your heirs are present?

If you’re uncertain about the inheritance and tax laws that account for each jurisdiction, you or your heirs live in, or if you’re not sure about the impact of evolving international regulations on your family’s future, it’s time to prepare.

Wealth, when nurtured and transferred wisely, becomes a legacy. But left exposed, even the most substantial fortune can fall prey to legislation, taxation, and discord.

Protect your assets, uphold family harmony, and honour your vision for generations to come. If you’re ready to future-proof your legacy succession, consider a confidential consultation with a trusted advisor.

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