Fort's Client Services Director, Matthew Gilligan discusses managing wealth across generations is never just about numbers. For ultra-high-net-worth individuals (UHNWIs), it often involves navigating deep-rooted family dynamics, differing values and evolving priorities — particularly when trust structures are involved.

As families become more globally dispersed and diverse in their views, the challenge of aligning around a unified vision for trust assets becomes more complex. Differing generational perspectives — especially around investment preferences, risk appetite and social responsibility — can lead to misalignment or outright conflict. In these moments, a firm but fair trustee plays a vital role in protecting the integrity of the structure and helping the family move toward an amicable solution.

Bridging Generational Gaps

A recurring theme in today’s family offices is the divergence between founding and next generation family members. Older generations may lean towards traditional investment strategies, favouring capital preservation and more conservative allocations. In contrast, younger family members increasingly prioritise sustainable and ethical investments, with ESG frameworks and impact strategies gaining traction.

Whilst this philosophical shift is not inherently problematic, it can create tensions when the trust deed offers broad discretion and/or lacks clear guidance. Disputes can emerge over investment direction, asset liquidity, or even the long-term purpose of the trust itself. In the absence of clear family governance or a cohesive vision, a well-positioned trustee is essential to interpret and uphold the terms of the trust, balance competing voices and offer objective guidance and leadership.

Legal Tools to Reduce Conflict

Prevention is better than cure, so avoiding conflict in the first place is, of course, preferable to trying to resolve it later down the line. One increasingly popular solution among legal advisers is the introduction of a Family Charter or Constitution. Though not typically a binding legal document, a Family Charter sets out shared values, principles and goals — providing a framework for decision-making and future engagement.

Such charters often cover issues including:

• the family’s collective mission and purpose;

• investment philosophies across generations;

• succession planning and expectations; and

• procedures for resolving disputes internally.

When paired with a robust trust structure, a well-drafted Family Charter can bring clarity and alignment, making it easier for trustees to act in accordance with the spirit — not just the letter — of the family’s intentions.

Other legal mechanisms, such as Letters of Wishes or formal family governance committees, can also provide helpful context to trustees, without compromising their fiduciary independence.

The Trustee’s Crucial Role

Even with the best governance tools in place, the role of the trustee remains pivotal. A professional trustee must remain impartial, upholding their duties in accordance with the trust deed, applicable law and the long-term interests of the beneficiaries — not simply the loudest voice at the table!

A “firm but fair” trustee knows when to listen, when to mediate and when to act decisively. Their value lies not only in administration but in offering continuity, clarity and authority when the family cannot reach consensus on its own.

Guernsey, with its mature and respected legal system, provides a strong foundation for trustees to operate effectively in this space. Its trust law is well tested and its courts are known for supporting professional trustees in the careful and considered exercise of their powers — even in the face of challenge.

In Practice

Trustees working with complex family structures should ideally have experience navigating cross-generational dynamics, as well as the sensitivity to respect cultural and personal differences. In many cases, they may also work closely with lawyers and family office advisers to help implement governance frameworks, interpret Letters of Wishes, or mediate on sensitive matters.

Ultimately, when disputes do arise — and they often do — it is the trustee who must stand as the final guardian of the trust’s purpose and integrity.

Conclusion

Family wealth brings opportunity but also complexity. The combination of legal foresight — through tools like Family Charters — and a steady, professional trustee creates the conditions for families to thrive across multiple generations. In a world where values evolve, a firm but fair trustee remains the anchor that holds the structure together.