This article highlights the fact that most wealthy U.S. families customarily choose individuals rather than trust companies to serve as trustee, even for complex trusts holding very substantial assets and even though a family who can afford it now has the option of creating its own trust. The article also argues that reliance on individual trustees carries the risk that it depends on an unbroken line of succession from one 'wise' (competent, diligent) trustee to the next, with little or no transition time or cushion to adjust for unexpected events.
Resource Search
Trust is not only crucial to success among the owners of substantial wealth but also the sine qua non for successful teamwork among professionals who work with them. There can be dangers, however, in too much trust and too little healthy confrontation, just as there are in mistrust and chronic conflict.
Why, when and how legal and financial advisors counsel their clients around their charitable giving options has important implications for the donor, for the gift planner, for charitable organizations and for society. The author makes a series of recommendations on how the advisor-client relationship can best be structured in the interests of both.
The key to overcoming the paradoxes is looking at a family not as the sum of its wealth, but as a collection of living, breathing individuals drawn together through their affinity for the family. It requires a willingness to fight the natural impulses that lead other families to return to their shirtsleeves.
A discussion of pre-nuptial, post-nuptial or cohabitation agreements.
A checklist of things to avoid when taking out life insurance.
How does a family office serving the third and fourth generations differ from one that is serving generations seven and eight? How do the servicing needs change as the family expands and changes? What happens when the cost of services delivered by the office exceeds the perceived value? How can costs be controlled? What back office systems are required?
In addition to guiding the family office, helping owners to think about issues that impact their family's goals is an important part of the family office CEO's role. While important to all financial families, these principles and practices become more critical as families grow in size and complexity and should be revisited regularly.
“I’m not the only rich kid worried about the voodoo of inherited wealth.” With these words, 21-year-old Jamie Johnson, heir to the Johnson & Johnson fortune, set out to record his peers’ angst over coming into vast inheritances.
Creating an educational experience that fosters peer exchange and involvement entails more work and risk than a simple lecture, but family members will leave the session with practical skills, deepened relationships and enjoyable memories.