Tuesday, October 22, 2013

Wealth Money and Family Part 2

To have a fighting chance to transfer wealth successfully you must have strong family values and a mission statement that will always be taught from one generation to the next.  Without strong moral and ethical values your family will surely destroy itself.  You must treat the family's wealth as a business.  Conduct annual meetings and constantly educate one another.  Outside advisers will need to be a part of the team, trust funds will be the vehicle to transfer the wealth. Remember the point is to control but not own.  Legal advice must be sought out regularly when it comes to taxes although it won't be the biggest concern you face it is good to get counsel as the law changes often.  The trustee will need to be picked wisely as the relationship between trustee and beneficiary will be of the highest importance.  You don't want needless lawsuits or a lack of communication to destroy the families wealth.

Careful planning is necessary when you plan on transferring wealth you must consider all possibilities and anything that may go wrong.  You don't want to destroy your future generations ability to dream and find meaningful work.  Money not transferred with proper instructions and principles can easily rob future generations of finding a purpose in life.  Plan accordingly and don't try to hide family problems this will only bring hostility to your meetings.  Enjoy your life and promote the same to your family. When you realize that a families wealth consists of social, human, intellectual and financial capital you will see the importance of community and communication among your members. The start of the journey or the continuation of one is a sign of courage let that ignite your day as you plan accordingly for your future generations.

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