We have all heard the following saying:
“The first generation builds the foundation …The second generation consolidates …The third generation squanders …”
Whilst the above saying may not hold true for every family, it can become a reality for some.
In most cases, the loss of generational wealth can be avoided by adopting a formalised structure that effectively manages a family’s wealth.
Based on our experience, the majority of individuals and families with significant wealth want to ensure this wealth grows, is effectively managed and is transferred to the next generation. The needs and goals of each family are different. The solution for each family is different but should consider the following key factors:
– Size of the wealth
– Personal and financial goals of family members
– Family dynamics
– Risk management
– Distribution and/or transfer of wealth
– Taxation and regulatory issues
We work closely with our high net-worth clients as a long-term professional partner assisting with:
– Administering financial affairs and investments
– Financial oversight of assets
– Regular reporting activity
– Working with other professional service providers
– Legacy planning
Critical to the success of transferring generational wealth is the involvement of all family members at the appropriate times. Initially, some of our clients are apprehensive about involving family members, however they soon realise that the risks of no involvement are often far greater than any risk of involving them.
Based on our experience, some of the benefits of structured planning are:
– Allows family members to pursue personal goals
– Better family governance
– Improves transparency among family members
– Reduces potential conflict
– Wealth preservation
With these needs in mind, our Family Office service provides a structured but flexible approach to helping families achieve good outcomes.
If you have any questions or would like to learn more about our Family Office, please contact John or David on 07 3221 4465.