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Sustainable Wealth Succession: The Family's Perspective
Deciding what should happen to your wealth after your death is never easy. Every wealth creator has options when planning the future of their accumulated wealth. The value of wealth creation is not purely financial — it includes socioemotional wealth and non-financial rewards.
The sustainability of the wealth succession plan depends in part on the interaction between the Family Council (the family governance system) and the management of the fiduciary structures (corporate governance system). It is this interaction that helps decision making to be long term, focusing on capital preservation and wealth creation.
The value of wealth creation is not purely financial. It includes socioemotional wealth and non-financial rewards. Socioemotional wealth can be described as the combined value of having great family relationships, contributions to the family's purpose and the feel-good actions of the family.
A family lacking a clear purpose is likely to see its socioemotional wealth drift without direction. For this reason, its capital depletes in order to finance their lifestyle rather than constructively contributing to its purpose.
The sustainability of the wealth succession plan depends in part on the interaction between the Family Council and the management of the fiduciary structures. It is this interaction that helps decision making to be long term, focusing on capital preservation and wealth creation.
Boston Multi Family Office is ideally positioned to assist clients with securing their wealth and planning for future generations. Contact Roelf Odendaal or any of your Boston contacts to discuss how they can help.