How to preserve wealth? The answer is in the family system
Succeeding as a legacy family across generations poses a challenge that few families navigate adeptly. As families evolve, they grapple with intricate governance, strategic, structural, and emotional complexities that resist swift and easy solutions. To cultivate enduring prosperity, a family and its wealth custodians must focus on the vitality of their "family system" and forge a comprehensive strategy that enacts vital transformations, fostering a thriving environment for individuals, the family as a whole, and their wealth.
A pivotal facet of preserving family wealth involves establishing a robust wealth preservation infrastructure or management system. This encompassing plan incorporates a suite of systems and processes meticulously designed to oversee and safeguard the family's wealth.
The cornerstones of prospering across generations include:
History: Unearth the family's roots, culture, and values, anchoring them in the family's future.
Vision: Cultivate a shared vision for the family's financial and non-financial aspirations.
Strategy: Strategize how the family collaborates and allocates resources to achieve future objectives.
Structure: Implement the necessary framework supporting ownership, governance, succession, taxation, and investment planning.
Investment: Formulate detailed policies dictating how family capital is invested to yield predictable goal-oriented outcomes.
Advisors: Assemble a cohesive team of adept advisors who share a vested interest in the family's triumph.
Reporting: Construct a systematic approach for tracking and reporting the family's progress, equipped with fitting benchmarks and metrics.
Engagement: Foster open communication among family members, nurturing a sense of responsible ownership and stewardship.
Through a series of discussions, family interviews, and a thorough analysis of the current and anticipated family dynamics, advisors can tailor a bespoke plan that addresses the distinct requirements and aspirations of the family.
In summation, the establishment and continual upkeep of a family wealth management system are imperative for families aspiring to safeguard their wealth across generations. By collaborating with experienced advisors, families can devise a personalized plan that aligns with their unique objectives and aids in achieving sustained financial prosperity.
By: John McDonald, Chartered MCSI.
To discover how we can assist in crafting your family system, reach out to us at info@waughmcdonald.co.ke.
