Effective family wealth planning can ensure that you can do things like plan out your retirement smoothly, buy real estate, and even take care of the next generation’s finances. All of this would be possible with the right combination of adequate insurance covers and investments, as well as following a disciplined plan for achieving your financial goals.
5 steps you need to follow for successful family wealth management
1. Be thorough with the family discussions
The first step would be to make sure that your family is clear about taking on the required responsibilities when it comes to their wealthmanagement. Before moving forward, you need to have clear communicationwith each family member regarding their individual role, decide who would be involved in the management of family assets, and also make sure the family’s goals and values are discussed.
2. Organise a family meeting
Once you have assessed and picked a plan, organise a meeting with the family to discuss it. Holding this meeting is essential since this would not just be for reviewing the family’s wealth planning goals but also present an opportunity for the family members to present their ideas.
3. Choose the best strategy for executing your plan
Irrespective of whether you have one main goal or multiple goals, you need to have a discussion with your family to find the best possible strategy for achieving these goals. On matters regarding health, discuss whether your family is financially safeguarded for the long term. Estate planning is another example, it is essential that the wishes are made clear in the estate documents to avoid any conflicts in the future. Discuss with your family regarding what time intervals work best for transferring assets to the children.
4. Clear out the details
Successful family wealth planning also involves being clear on the specifics such as addressing any potential conflicting goals within the family groups, reviewing the current plan with your children, and even what you would want to give to your heirs.
5. Regularly evaluate the plan’s performance
This is where relying on family office services can be helpful since you would have someone actively working to ensure that the plan for your family’s wealth management is running smoothly. Your family office management advisor is tasked with organising scheduled meetings, considering your family’s opinions while formulating strategies, ensuring that each family member’s role is established, and lastly, taking care of any concerns regarding the family’s plan for its wealth management.
A unified approach is crucial for the family wealth planning process to be smooth sailing, especially when it comes to High-net-worth and Ultra-high-net-worth families. The amount of coordination that is required for overlooking the strategy for wealth planning extends to wealth managers, tax advisors, legal counsel, and multiple other teams. A family office simplifies this entire process by providing investment advisory services, ancillary services, and even other value-added services such as concierge and lifestyle services as well as making philanthropic impact investments.