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Succession In The Spotlight | Bernard Arnault
An Introduction to Succession In The Spotlight
Following recently published data, the next generation is now anticipating and preparing itself for the so-called ‘Great Wealth Transfer’ of $124 trillion over a mere 25 years. As an advisor to private wealth, succession, more than ever before, has become the primary concern for families and not simply due to HBO’s blockbuster series.
That is not to say that succession has not been front and centre in previous generations. However, never has any ‘new generation’ ever been set to receive such a great transfer of wealth in such a short space of time. Added to this, the ‘transferor’ generation (for want of a better word) has never been so far apart culturally, politically, emotionally and spiritually from its offspring. The pace of change is breathtaking and the separation between generations is stark.
With the old adage that wealth dissipates within three generations, how might business founders and creators of generational wealth tackle and overcome the succession challenges before them in today’s world?
Rather than rummaging through a dusty old library to learn from the past (this not-too-distant past resembling a decaying relic from antiquity), we must learn from the present. We must see how, in real time, prominent and renowned founders of multi-national, family-run or owned businesses are able to tame the beast of change and overcome the issues of the day to protect their legacy. Naturally, we are relying on publicly available information and do not know the reality of any individual or family behind closed doors. We recognise that the plans we intend to put in the spotlight may not be the most relatable, given that they mostly address billionaires. They are, however, public and often dramatic and so make for interesting reading.
With this, welcome to our article series called ‘Succession in the Spotlight’. In this series, we explore what well-known business founders are saying and doing to ensure both legacy and leadership in an ever-changing landscape.
Today, it’s Bernard Arnault in the spotlight.
Bernard Arnault – Fashioning the Future
When one of the world’s wealthiest person speaks, people listen. Ever more so when it comes to the topic of succession.
Bernard Arnault, the Chairman and CEO of LVMH Moët Hennessy Louis Vuitton, has built the world’s most powerful luxury empire. So much so that, in their own words, LVMH represents just over 1% of the GDP of France. As of 2025, LVMH is home to over 75 prestigious brands, from Louis Vuitton and Dior to Tiffany & Co and Bulgari. And yet, despite record profits and constant global expansion, Arnault’s most pressing and urgent task is not growth but, yes…succession. This article focuses mostly on the question of leadership and control, as opposed to ownership.
Succession with Style: Five Children, One Vision
Arnault has five children, with all five holding senior roles in the LVMH group:
- Delphine Arnault is CEO of Dior.
- Antoine Arnault chairs Christian Dior SE and oversees image and communications at LVMH.
- Alexandre Arnault is EVP at Tiffany & Co.
- Frédéric Arnault leads TAG Heuer.
- Jean Arnault heads marketing and product development at Louis Vuitton watches.
As it apparent, from a leadership perspective, there is no single heir. He has immersed his children within the wider group and instilled in them a sense of individual responsibility to serve the collective. With each component its own empire and brands as famous as nation states, Arnault has set in motion a succession strategy as public as one could imagine. In this sense, the world can determine and assess who (perhaps singular or plural) will rise to the top.
Indeed, as Arnault once commented:
“It’s not about appointing the oldest. It’s about choosing the most competent.”
Tailored for the throne
Arnault’s succession plan is not just about leadership. In 2023, for example, he extended the upper age limit for LVMH’s CEO from 75 to 80. In doing so, he gave himself more time to manage the transition recognising that succession is not an overnight exercise or, perhaps, a task to be completed in one generation.
Without too much fuss and in tacit form, he also restructured his family holding company, into a société commandité par actions (SCA). An SCA is a type of limited partnership that locks in family control through generations, while offering the flexibility to adapt.
In fashion, staying fashionable is the aim of the game and this requires adaptability and an openness to change. Arnault has quite brilliantly incorporated this mindset into his succession plan.
Three Lessons: Stitching together a legacy
Succession is not a one-off event
Protecting one’s legacy for the next generation takes a generation or more to fashion together. Unlike many founders, Arnault did not wait until retirement to begin crafting his succession plan. He has spent, quite literally, an entire generation positioning, testing, and mentoring his children. You will notice that he has never appointed his successor. Whether this pays off is yet to be seen but Arnault’s openness and adaptability to the succession process is there for all to see.
Meritocracy is an essential thread
LVMH is fundamentally a family business. However, it remains a public company with global shareholders and reach. Arnault, in his decision making, has made it abundantly clear that performance and merit will determine future leadership. In taking this approach, he is doing away with the age-old concept of primogeniture and instead rewarding excellence – the very standard that led him to such towering financial success.
Legal structures are nothing without the people
Perhaps surprising coming from a lawyer but irrespective of restructuring, Wills and other legal devices, Arnault’s key framework is that of family governance. Much like a building, the key structure is of little importance without working mechanisms like the electricity, water and insulation. In the context of a family business, a legal structure serves very little purpose without a set of people, a set of successors aligned to a common purpose and fashioned for the task.
Dressed for success
For Arnault, success is not in size alone or its financial weight as a proportion of the French GDP, however impressive this might sound. Much like the fashion world, domination and success across generations is down to a continual emphasis on excellence and an adaptability to achieve these aims.
Arnault is both a human embodiment and, ultimately, indistinguishable from his fashion empire. The tools to remain relevant and successful in fashion are indistinct from what constitutes success in succession. Vision, leadership, adaptability, merit and excellence – these are the ingredients for success in succession.
As ever, plans change. Whether this plan materialises into generational success remains to be seen.
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Demystifying Trusts: Answers to Google’s Top Questions with Ben Rosen
In the video, private wealth & tax partner Ben Rosen tackles the most-searched public queries around one of the most frequently misunderstood vehicles in wealth planning–trusts. Following the response to our video on Diary of a CEO‘s tax debate, it became clear from the online commentary that people are unfamiliar with how they operate, particularly regarding taxation, asset protection, and on the death of a family member. Ben steps in to clarify.
Why are trusts used?
One of the most common misconceptions is that trusts exist primarily to avoid tax. In the UK, this simply isn’t the case. While tax considerations may come into play, trusts are fundamentally tools for succession planning, helping individuals preserve and manage wealth across generations.
Ben illustrates this with a relatable scenario: Imagine a successful business owner with two children, one actively involved in the business, the other not. The family may have concerns about inheritance being affected by potential issues like divorce, bankruptcy, or addiction. A trust can provide a balanced, protective structure, allowing the parent to support both children while safeguarding the longevity and values of the family business.
Why are trusts seen as complicated?
This often depends on who you ask. At their core, they are not complex. They are not standalone entities, but rather legal relationships between:
- The trustees, who look after the trust assets in accordance with the trust deed; and
- The beneficiaries, who can benefit from those assets.
The trust deed is a legal document outlining the powers and responsibilities of the trustees. Often accompanying this is a letter of wishes, a non-binding document that guides trustees on how to exercise their discretion in line with the settlor’s values and intentions.
The complexity often arises from legal terminology, not the concept itself. As Ben points out, understanding the “code” behind the legalese can make things clearer, something lawyers are trained to do for their clients.
Why are trusts so expensive?
Trusts exist on a spectrum. Some, like bare trusts, are straightforward and inexpensive. These might simply hold assets until a child reaches 18. Others, especially those involving complex family dynamics, business interests, or long-term planning, require tailored legal and tax advice, which can increase costs. The level of complexity, and therefore expense, should reflect the needs and goals of the person setting up the trust.
Why are trusts allowed?
Trusts are not shadowy loopholes; they are lawful, regulated structures. In the UK, most trusts must be registered with HMRC’s Trust Registration Service (TRS). This ensures transparency and compliance with financial and anti-money laundering regulations. Trusts are allowed within strict legal boundaries, and their existence supports legitimate planning needs, particularly where families are navigating intergenerational wealth or complex personal circumstances.
Final Thoughts
As Ben make clear, the purpose of trusts is not to game the tax system, but to provide flexible, legally recognised ways to protect assets, plan for the future and honour family wishes. When designed and administered properly, trusts are not about secrecy, they’re about clarity, control, and care.
Watch the full video to hear Ben’s answers in depth and understand why, far from being loopholes for the wealthy, trusts are vital tools for anyone navigating life’s complexities with foresight.
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When It’s Too Late To Choose: The Cost Of Not Having A Lasting Power Of Attorney
Planning for the future is a vital part of ensuring personal affairs are managed effectively if capacity is lost.
A Lasting Power of Attorney (LPA) is a legal document that allows an individual (the donor) to appoint a trusted individual (or individuals) to make decisions on their behalf should they become unable to do so.
Failing to put in place an LPA can lead to complex, time-consuming, and costly consequences.
Types of LPA
There are two types of LPA in England and Wales:
Property and Financial Affairs LPA
This covers decisions such as managing bank accounts, paying bills, and selling property.
Health and Welfare LPA
This relates to care needs, medical treatment, and life-sustaining decisions.
Both must be made whilst the donor has mental capacity and registered with the Office of the Public Guardian to be valid.
What does it mean to lose capacity?
Mental capacity refers to the ability to make a specific decision at the time the decision needs to be made. This includes understanding information relevant to decision making, retaining it long enough to weigh up options, and communicating a choice.
Capacity can be lost gradually, such as through dementia, or suddenly, due to a stroke or serious injury. Importantly, capacity can fluctuate, and it may be that an individual might lack capacity at a particular point in time but regain it later.
As well as time-specific, capacity is also decision-specific, and a person may lack the capacity to make one kind of decision, but retain capacity to make others.
Without the necessary capacity, you may be unable to manage your financial affairs, make decisions about your health and welfare, or even handle day-to-day matters.
Critically, once capacity is lost, it is too late to put an LPA in place.
What happens if you lose capacity without an LPA?
If you lose mental capacity and do not have an LPA in place, no one automatically has the legal authority to manage your property or finances, and only the healthcare professionals treating you will be able to make health or welfare decisions on your behalf, acting in what they believe to be your best interest. In this situation the Court of Protection must be involved, and someone (often a loved one) must apply for a deputyship order to act on your behalf. This process can be:
Lengthy
The application process typically takes 6-12 months, and potentially longer if contested or delayed. During this time, no one can legally manage your finances or make decisions, which can affect bill payments, care arrangements, or property sales.
Costly
Costs include application fees, legal fees, medical assessment costs, and ongoing annual fees for example. A deputyship is much more time consuming and costly compared to making an LPA.
Restrictive
A deputy’s powers, once granted, are limited, and they are subject to ongoing court oversight.
Stressful
Applying to the Court of Protection for a deputyship order is a process that can be slow, expensive, and emotionally taxing, especially if there is a disagreement over who should apply or how decisions should be made. The lack of clarity and legal authority can cause confusion, disputes among family members, and emotional distress at an already difficult time.
Why set up an LPA?
An LPA is a legal document that allows you to appoint one or more trusted individuals (your attorneys) to make decisions on your behalf if you lose capacity. Key benefits include:
Control
You choose who acts for you and you can set out clear instructions or preferences.
Speed and simplicity
Attorneys can either act immediately once the LPA is registered (Property and Financial Affairs LPA only), or once you’ve lost capacity.
Peace of mind
Having a valid LPA in place can avoid the cost, delay, and complexity of court proceedings.
Respect for your wishes
LPAs can be tailored to your wishes and ensures that future decisions made by your Attorneys reflect your values and preferences.
A vital safeguard for everyone
An LPA is a vital part of lifetime planning, just like a Will. Without it, your finances, health, and welfare decisions could fall into the hands of the Court rather than trusted individuals of your choosing.
To discuss your requirements and find out how we can help you, please get in touch.
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