Each year brings new possibilities – and 2021 is no different. Emerging from the pandemic. Deepening social change. More predictable U.S.politics. The way we see it, 2021 will be a year many families turn optimistic and begin to act on rising opportunities.And while much remains uncertain, some changes are already either steaming ahead, or emergent on the horizon. These Forces for Change are what you will need to prepare for, through 2021 and beyond.
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Enterprise families are unique because they share ownership and stewardship of more than just family businesses. In addition to co-owning operating companies, they are the guardians of family legacy, family trusts, shared philanthropy, and joint properties. As leadership moves from founders to siblings to cousins and family priorities change, the decision-making structures must evolve to stay relevant.
Sometimes, unfortunately, a trip to the hospital is unforeseen and unplanned. Often, however, procedures and elective surgery are scheduled in advance. If this is the case for you or a loved one, planning ahead for a hospital stay and taking a few simple steps can ensure greater comfort and a faster recovery. This is important for everyone, but especially for those who are older.
When a family member is diagnosed with a memory disorder like Alzheimer's, it can be confusing and frustrating. With the right preparation and care, family offices and household staff can provide invaluable assistance and information to the families on what to expect and how to cope from the early stages to the end stages of dementia.
The 2018 U.S. Trust Insights on Wealth and Worth® study asked nearly one thousand high-net-worth individuals about their approach to building wealth and the extent to which they are using it to achieve their goals and support the causes they care about most. The study found that while wealth provides the freedom to do more, it also brings increased obligations, expectations and demands.
It is often thought that financial success comes with a certain level of financial freedom: the freedom to pursue passions, to take risks, to give back, and to make an even bigger impact. In the 2018 U.S. Trust Insights on Wealth and Worth® survey, the results revealed that only half of high-net-worth individuals have a plan to optimize the opportunities their wealth provides.
Wealth does not build itself, but it can be built, nurtured and preserved—not just for you and your generation, but for generations to come. In an unprecedented study into the insights of wealthy families, clear evidence of new wealth management strategies has emerged. There are signs of more inclusive decision-making within the family. Many are looking beyond the balance sheets as they redefine what success means to them. And, importantly, they’re relying more and more on their business acumen to adopt a systematic approach to wealth management.
All business owners will transition their business at some point in the future. Whether it is a transfer within their family, such as to the next generation, or to an existing business partner or employee, or sold to a competitor or outside investor, transition will occur. Just as successfully run businesses do not happen overnight, transitioning well cannot happen without devoting the necessary focus and intentionality.
While wealthy families prefer to pass nearly two-thirds of their wealth to their children, grandchildren and other heirs, they grapple with a fundamental question: Can their wealth benefit their generation and be passed on to future generations while also having a positive impact on those future generations? Experience shows that sustaining family wealth is indeed possible when families begin to see their wealth not only as a series of activities that need to be performed, but also as an enterprise that needs to be managed.
The Board of Directors plays a pivotal role in the effective governance of the private family trust company (PFTC). They are responsible for overseeing management, providing organizational leadership, and establishing core corporate values. Board members fulfill these responsibilities, in part, by holding regular meetings that utilize a comprehensive agenda. Following ten suggestions to developing an effective agenda will permit adequate time for presentation and discussion of material issues, and in turn lead to more productive, efficient and educational Board meetings.