property . They ’ ll also want to use identity theft protection services — ones that that monitor for fraudulent activity and provide insurance against cybercrimes — as part of their overall security measures . Lastly , families should consider the role of digital executors — individuals or entities tasked with managing their digital assets — to ensure continuity after a crypto-holder dies and make sure these assets are protected .

• The creation of dedicated security trusts funded with business interests .

• The incorporation of security costs into family office operating agreements .

• The structuring of security programs through family limited partnerships .

Digital Security And Identity Theft

Your ultra-wealthy clients are also at risk from people stealing their identities and breaching their data . Such attacks expose their sensitive details , such as their calendars and travel plans . So estate planners must incorporate robust cybersecurity protocols — by encrypting digital records , for instance , and by performing regular security audits . ( These planners should also use secure communication channels for all client interactions .)

Furthermore , families should create a digital asset protection strategy — one that safeguards online banking credentials , crypto wallets and the clients ’ intellectual

Documentation Becomes Critical

If you want to reap the tax benefits of corporate security programs , you must provide proper documentation , particularly independent security studies that justify it as a business necessity . Proper estate planning best practices demand this anyway when it comes to filing taxes .

As security threats evolve , estate planners need to stay ahead of both a family ’ s need for protection and the tax implications of hiring security . Regular security assessments should be incorporated into the standard estate planning review process , much like periodic investment reviews .

The bottom line is that a wealthy family ’ s personal security can no longer be treated separately from their estate planning needs . The most effective strategies will include physical protection , tax efficiency , and succession planning in a comprehensive approach that safeguards both family and fortune for generations to come .

Innovations in this space will continue to emerge , so that planners can put security measures within financial frameworks . Practitioners should consider how emerging trends , such as tech-enabled security solutions , can be used to improve family office operations . I encourage ultra-wealthy families and their advisors to take these things into account while developing their estate planning strategies . By doing so , they can not only physically protect a family but also protect its financial legacy amid new challenges and threats .

MATTHEW ERSKINE is managing partner at Erskine & Erskine .

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MARCH 2025 | FINANCIAL ADVISOR MAGAZINE | 43