Family wealth management is a careful and considered business. Maintaining that wealth over generations is often one of the core aspects of any strategy, making family succession one of the key topics that advisors and families need to consider.
In this month’s recommended reads, we look at varying advice on preparing for family succession, ways of undertaking this process and how to make the best decisions for your children and grandchildren.
Succession planning is integral to any business and to the smooth operation of a family office. In recent years, partially due to the COVID-19 pandemic, there has been a noted uptake in family’s getting the younger generations ready to succeed.
In this article for CampdenFB, Chris Smith looks at the potential benefits for proactive succession and why bringing succession forward is the right move as long as it is managed correctly.
Richard Eisenberg writes for Forbes about the importance of early succession planning for family businesses. Advocating for family advisors, Eisenberg discusses the challenges of finding a successor, at a time when younger generations are becoming less invested in family businesses, and how to mitigate this when considering your own exit strategy.
Succession And Sustainability In Millennial Times – Campden FB
Naveen Khajanchi examines the quandary of succession planning for families and family businesses at a time when the next generation, many of them millennials, are taking a vastly different approach to their role in family enterprises. Building on Rigby’s considerations in The FT, Khajanchi offers dual perspectives: the difficulties of family succession with millennials and the advantages of knowing these difficulties when building your succession plan.
Disinheriting Your Children Might Be For Their Own Good – The Financial Times
The FT reports that a Harvard Business School study ‘shows 90 per cent of family fortunes are depleted by the third generation’. Concerns about how to best maintain wealth over multiple generations are serious for any family with foresight, but the answers aren’t always what one might expect.
In this article, Rhymer Rigby takes inspiration from the widely popular television series Succession, along with Harvard Business Review studies, to look at how generational wealth can be a burden or a buoy to the children of the wealthy. He also looks at trends from millionaires from all walks of life and how they plan to pass, or not, their wealth to their children.
The last in a series from Forbes’ Councils Member, Jacob M. Engel. He tackles the value of maintaining family unity as part of a wealth management strategy, especially within family businesses. Engel offers insights on how to approach building unity, with practical tips for creating a strong foundation for family business succession. You can also delve into Engel’s other Commandments, which he recaps in this final post.
What’s Next: Further Reading
We offer regular articles on our website, tackling the most valuable and important areas of wealth & asset management and investment for our clients. Take a look at our Recommended Reads section for more articles of note.