A hundred years is a long time. It is especially long in an age of the Internet, cell phones and Blackberrys. Society is also very much focused on instant results. Nevertheless, planning for the next 100 years is one of the most critical tasks a wealthy family faces today. With this 100-year plan, a family sets in motion a culture and philosophy that can guide future generations to perpetuate the family's financial and intellectual capital.
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Based on a global survey of high-net worth individuals, including almost 300 family business owners, the eighth instalment of Barclays Wealth Insights provides fresh analysis into the state of family businesses around the world today. The report will assess the current situation and prospects of family businesses, and examine in detail their unique characteristics, advantages and disadvantages, with particular reference to today's challenging economic, financial and operating environment.
A new paper from Butterfield Private Office outlines private trust companies and how ultra-wealthy individuals and families can use them to manage a wide variety of assets while retaining a large measure of control over the administration of those assets.
Too often, family disputes over power and money are settled publicly in the courts, creating rifts among family members that may linger for decades. This article from Withers Bergman emphasizes the importance of transparency among family members and recommends non-legal solutions, such as the formation of a family council, regular family meetings, dissemination of information among family members and education programs for the young.
Solving complex social problems can require breaking down the barriers of centuries-old political, social and ethnic conflicts. This article from Synergos explores the concept of bridging leadership as a method of bringing opposing groups and diverse leaders together for social change.
Adult children, who one day will manage a family's wealth, need to understand the values and investment strategies of older family members. This article from Northern Trust shows how a family's elder statesmen can pass on a family legacy of more than money to ensure continuity and financial security for future generations.
Training children about wealth and financial responsibility can start with teachable moments in everyday life. This article from Calibre offers suggestions for how wealthy families can use these moments, as well as allowances, to help children develop financial literacy and solid money values.
As their personal wealth and educational levels have increased, women have sought a more equal and active role in family governance, philanthropy, and business and financial planning. This article from RayLign explores the changes that have empowered women and how those changing roles affect family leadership, decision-making and relationships.
Family businesses are most at risk for financial troubles based on a lack of formal succession planning and preparation, and on family business owners' personal financial issues, according to MassMutual Financial Group's 2007 American Family Business Survey. The survey also found that family businesses are growing in jobs and revenues, and often with women leading that growth.
An inherited fortune may come with strings attached as wealthy families make a college education or job experience a condition of inheritance. About 60 percent of families with more than $10 million in assets place stipulations like these, according to a report on attaining and retaining wealth from Barclays Wealth. The report also discusses the importance of family members agreeing on how wealth will be passed on.