Nicolas Puech, the 80-year-old heir to the Hermes fashion empire, has embarked on an unconventional journey by planning to adopt his 51-year-old former gardener, according to Fortune magazine. This move, if successful, could see the gardener inheriting a substantial part of Puech's $11 billion fortune, a scenario that is attracting widespread attention for its rarity and potential implications.
Unmarried and without direct heirs, Puech's decision to reshape the destiny of his considerable assets, constituting 5% to 6% of the Hermes brand's approximately $220 billion value, breaks conventional norms. To achieve this, he has involved a legal team to assist in the complex process of adopting his former gardener, who is of Moroccan descent and has his own family.
The former gardener stands to inherit significant assets, including properties in Morocco and Switzerland. But the process is mired in complexity because of stringent Swiss laws around adult adoption. These laws create substantial hurdles in Puech's approach to estate planning.
Puech's tumultuous relationship with the Hermes brand, including his 2014 departure from the company's board amid a hostile takeover attempt by LVMH Moët Hennessy Louis Vuitton (NYSE: LVMH), adds another layer of complexity to this narrative. His decision seems influenced by ongoing family dynamics and disputes.
The involvement of the Isocrates Foundation that Puech is associated with and which opposes his succession plans adds potential for legal contention over his estate. This situation could lead to intricate legal battles, adding to the already complex situation.
Puech's approach to estate planning is particularly notable when viewed in the context of a UBS study on billionaire wealth transfer. The study reveals a shift in the trend of wealth accumulation among billionaires, with a growing number gaining wealth through inheritance rather than entrepreneurship. It highlights that, for the first time since the study began in 2015, inherited wealth among billionaires has surpassed wealth accrued through business activities.
The UBS report shows that in the past year, 53 heirs inherited a total of $150.8 billion, surpassing the combined wealth of 84 new self-made billionaires. This marks a significant shift in the dynamics of wealth accumulation and transfer among the ultra-wealthy, indicating an increasing emphasis on inheritance as a means of wealth growth.
Puech's decision not only deviates from the norm but also reflects broader shifts in global wealth trends. This situation, involving one of the most illustrious names in the fashion industry, presents a unique and intriguing case study in the evolving world of billionaire estate planning, highlighting the unexpected and often complex paths that wealth transfer can take.