“The Rest of the Story” – Upbeat Outcome or Not

By Guest Contributors on January 9, 2014

When transitioning wealth from one generation to the next, “the rest of the story” occurs after the estate transitions.  Sadly, the rest of the story does not have an upbeat outcome. Unfortunately the rest of the story is that only about 30% of affluent families successfully retain and grow their wealth and maintain family harmony following a transition to the next generation.

Traditional wealth management and estate planning focus on transferring wealth, minimizing taxes and defining ownership and control. Professional advisors are very skilled at making sure that wealth properly transfers to heirs.  What has been missing from wealth transfer planning is a comprehensive discussion on whether or not the heirs are ready to receive and manage the wealth that they will inherit and how to maintain family harmony and unity going forward.

Studies have shown that internal family dynamics underlie the great majority of the estate failures, not professional advice.  The primary causes have been identified as (i) a breakdown of trust and communications within the family unit; and (ii) failure to prepare heirs.

There is an opportunity to prepare your family for the successful transition of wealth to the next generation.  With proper awareness and coaching, the family can develop and use appropriate skills so that intergenerational harmony and family unity, and wealth preservation and generation becomes the reality.

The Edmonds Business Family Advisory Services team, which is comprised of “soft” and “hard”, or “relational” and “financial” skilled practitioners, has experience working with families like yours to identify and understand the relational capital opportunities, challenges and concerns today, and to develop appropriate action steps and plans to enhance family harmony and unity going forward and to prepare your heirs to receive and manage the wealth they will inherit.

The Edmonds Business Family Advisory Services program helps the family to plan and prepare for the post-transition period.  It equips them to successfully manage their family interactions going forward and transition relational and financial assets to the next generation.  In short, it moves the family into the 30% “successful” group.