Shockingly, 60 percent of family wealth succession transfers fail, according to research by Roy Williams and Vic Preisser in Preparing Heirs, 2003. Rarely does the failure concern poor investment choices or bad tax advice; it’s
Traditionally, the focus of wealthy families is on the asset or assets that have monetary value.
Wealth advisors are often uniquely positioned to introduce the concept of open dialogue and ongoing communication to their clients because they understand the intricacies of the family dynamics. Years of thoughtful planning and conversations with the leading generation—with the primary goal of securing a legacy for the following generations—provides the opportunity to make that vision an integral part of successful wealth planning.
Share Your Family’s Story
Engagement, therefore, is a process and not a transaction. The first step is communication among family members. Many families struggle with how and when to have conversations about money and wealth. Older generations, sharing the history about how the family wealth
Families may want to enlist the help of their advisor or someone with expertise in facilitating these conversations. The advisor’s role is to educate, provide guidance and maintain
Model Good Stewardship
Engage in Meaningful Experiences
One of the most powerful ways to engage family members is through philanthropy. Typically, affluent families support causes they are passionate about by donating their time, leadership and financial support. Successful families recognize that we live in a dynamic world with ever-changing issues that transcend generational differences. Find a cause that resonates with younger family members such as eliminating or reducing poverty, improving the environment or saving wild animals.
Wealthy families now have the resources and tools to preserve not only their tangible wealth but also to share their vision and values for living lives full of intention, passion, learning and joy for generations to come.
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