Blended families creating demand for tax services across jurisdictions: study

An increase in blended families with members living in different tax jurisdictions is making estate planning more complex and contentious.

A global survey of STEP members, sponsored by professional services firm TMF Group, found that 96% of respondents are now advising blended families, with three-quarters noting an increase in the number of blended families they work with in the past 10 years.

Tax issues resulting from differences across jurisdictions are a leading point of contention and often lead to litigation, according to three-quarters of respondents.

“The increase in complexities and the potential for conflict associated with the modern family has resulted in increasing demand for advisors and their services,” the study noted.

Tax advice tops the list for multi-jurisdictional families, due to differing tax rules and a heightened focus on tax transparency and compliance.

Trusts are also appealing to blended families due to their flexibility and ability to respond to evolving circumstances, the survey said.

“The complexity and wide-ranging compositions of today’s families means a bespoke approach is needed, which invariably takes time and money and often requires collaboration with other professionals,” the report stated.