Trusteeship for the next generation: preparing families and advisers for succession

By Sarah Denoual and James Harrison

The seismic shift in global private capital is well documented, as is the recognition that this is a generational as well as a financial transition of wealth. Traditional approaches are being challenged by NextGen beneficiaries who may have a different approach to wealth from their parents and who want this reflected in their trustees too. 

Drawing on the topics discussed at the Praxis-sponsored roundtable at the ThoughtLeaders4 Private Client conference in Jersey in October - chaired by NextGen leaders Sarah Denoual and James Harrison - they look at the evolving role of trust practitioners and explore why adapting to these new expectations is essential.

From discreet trusteeship to open dialogue with the next generation

Many trusts today were established by a generation of principals, who valued discretion and stability. Wealth was managed quietly, decisions were kept within small circles, and the trustee's role focused primarily on administration and asset protection.

In contrast, NextGens are approaching wealth and legacy with different expectations. Digitally adept, globally educated and socially aware, these younger beneficiaries are more likely to ask questions, expect consistent engagement, and view wealth not simply as something to preserve and steward, but as something to deploy with a clear sense of purpose.

That is not to say that the current matriarchs and patriarchs lacked a social conscience – indeed their generous acts of philanthropy are very evident. But the world is a different place, and being prepared for these changes can smooth family relationships at key moments of succession. 

Why this transition matters now for families and trustees

When younger beneficiaries feel excluded from conversations, they can lose confidence in the people and structures managing their affairs. That erosion of trust can breed tension with advisers and in the family dynamic. 

We’ve seen how valuable it can be to take a more proactive approach – bringing the NextGen into the picture in a way that is clear, structured and appropriate to their stage of life. When done well, this strengthens relationships, fosters long-term confidence and helps the younger members gain a sense of leadership before they finally step into it.

Key questions for families and advisers to consider in NextGen trusteeship

Every family is unique, but there are common questions worth asking: 

• Does the current trustee have experience working with younger beneficiaries, particularly those new to inherited wealth?
• Are trust structures and reporting practices aligned with the next generation’s expectations?
• Is there a clear and agreed plan for introducing younger family members to the trust, its governance, and their future responsibilities?
• Are communication styles – language and format – accessible and appropriate?
• Are there cultural expectations, such as privacy or hierarchy, that could unintentionally hinder meaningful engagement? 

Such discussions are not singular events but integral to a gradual and well-managed succession plan.

One practical strategy we have seen clients implement successfully is the creation of modest separate pools of capital for a younger beneficiary to manage. This encourages responsibility, supports financial literacy and provides advisers and trustees with an opportunity to observe how the individual responds. It also provides a foundation for more informed conversations in the future.

Building long-term generational confidence in wealth structures

Successful families plan for change. Trusteeship is not just a technical appointment – it is journey across generations, cultures and jurisdictions. 

At Praxis, we understand that longevity is not just about preserving capital; it’s about preparing the next generation to be exceptional stewards and leaders. That means working with clients and their advisers to build trust – both in the legal and governance frameworks as well as in the people behind it.

If you’d like to explore how we support families through this transition, or to learn more about our private wealth services, please reach out to James or Sarah.  

Please note that this article is intended to provide a general overview of the matters to which it relates. It is not intended as professional advice and should not be relied upon as such. Any engagement in respect of our professional services is subject to our standard terms and conditions of business and the provision of all necessary due diligence. © Praxis 2025