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Top 6 considerations for managing lifestyle & luxury assets

Top 6 considerations for managing lifestyle & luxury assets

22 February, 2024
Global Private Clients Trust Services Lifestyle & Luxury Assets Succession Planning Private Client Family Office Private Capital

In a world driven by evolving aspirations and refined tastes, the concept of lifestyle and luxury assets have taken on new dimensions. Lifestyle and luxury asset services are integral components that cater to the desires of individuals seeking exclusivity and personalised experiences. That said, they typically come with their own governance and time-consuming administration, while also taking succession planning into consideration.

What do we mean by lifestyle and luxury assets, and are they one and the same?

The difference between lifestyle assets and luxury assets often lies in necessity versus ‘nice to have’. Lifestyle assets are considered essential for a way of living, designed to enhance or streamline various aspects of an individual’s life, such as properties and homes.

On the other hand, luxury asset services are intricately linked to the acquisition and management of high-value possessions. These assets can range from personal aircrafts and classic cars to rare collectibles and investment-grade art. The management of such assets requires specialised expertise to ensure their preservation, growth, and seamless integration into the owner's lifestyle.

What are the key considerations for managing luxury & lifestyle assets?

1. Strategic registration

For assets like yachts and planes, understanding the registration jurisdiction is crucial due to beneficial VAT regimes. Despite registration location, these movable assets may not necessarily be stationed there, unlike real estate, offering stability.  It is important to understand the implications of the jurisdiction where these assets are physically located because of the increasingly regulated world and sanctions risks.

2. Dynamic nature of assets

The luxury asset landscape is regularly evolving. These days, we see an increase in high-quality artwork copies at the request of the owners and the emergence of NFTs. Staying informed about these changing dynamics is vital in managing and preserving the value of these assets.

3. Preparing for all scenarios

Third-party service providers must be prepared for all eventualities, from staffing support to dealing with unexpected requests. Establishing connections with agencies for various needs, from housekeeping to chauffeurs, contributes to seamless asset management.

4. Understanding client motivations

Tailoring asset management to the client's motivations is crucial. Whether it's a vast collection of cars or investments in wine, comprehending the purpose behind these assets, be it pure enjoyment or investment, shapes the management approach.

5. Ring fencing & protection

Employing third-party providers to ring-fence and protect assets, especially from potential legal challenges like divorce, requires a nuanced approach. The family's attitude towards wealth plays a significant role in determining the level of protection needed.

6. Privacy measures

Privacy is of paramount importance, particularly concerning paintings and other valuable assets. Utilising anonymised structures for purchases and adopting strategies to keep details private, such as acquiring copyright to prevent online access to real estate floorplans, helps maintain confidentiality.

How can Ocorian support with lifestyle & luxury asset management?

At Ocorian, we specialise in managing high-end lifestyle and luxury assets, including private jets, yachts, art collections, and substantial wine and car collections. Our expertise extends to navigating the complexities of insurance, storage, and tax considerations, with a focus on providing comprehensive support across various jurisdictions. Reach out to the team for more information.