Family wealth planning is a complex and nuanced process, and for the plan to be successful, members of a wealthy family must agree on the same objectives for their wealth now – and for future generations.
To add complexity to the process, the plan also must allow for a level of flexibility, accounting for factors ranging from changing family objectives to the ever-increasing lifespan of family members thanks to modern medical advances.
In a recent interview with Family Wealth Report, Delegate Advisors Co-Managing Partner Andy Hart offered guidance on navigating the challenges of creating a multi-generational wealth plan. At the top of his list was open communication among family members and with their advisors. While this can be accomplished in a number of ways, it boils down to the family leaders articulating their wishes while also providing an opportunity for each family member to ask questions and share concerns. A family’s advisor also plays an important role in these conversations. Hart stressed the importance of advisors playing a “polite devil’s advocate” who can provide a financial forecast based on a family’s objectives and help the family avoid common pitfalls such as over-consumption or high taxation.