Wealth transitions are not always a cut-and-dry process. In fact, they can often be stressful or even emotional for family members. However, there are certain things you and your family can do to effectively prepare for a smooth wealth transition. Where do you begin? According to our research, wealth transitions occur more smoothly when:

1. Heirs are Prepared

Prepared heirs mean they understand the ins and outs of their role, and what it takes to be a good beneficiary. They have taken the time with family members and/or professionals to understand their role in the process in order to carry out their desired duties. It also means they are able to navigate familial relationships well, have a strong sense of purpose, and see how they as an individual can be a contribution to the greater family resources.

2. Relationships Among Family Members are Trust-based and Affable

Trust-based relationships mean people are able to freely speak truth to power, feel safe to express themselves to their family honestly, and have the foresight and skills to co-design a future that works for them. Additionally, it means there is a friendly, good-natured quality to family relationships, enabling all parties involved to be honest about their feelings and needs in the wealth transition process. 

3. Families are Proactive in Wealth Planning and Designing Values

Proactive planning means the voices of the next generation are considered while the decision-makers are still on the right side of the daisies. The gap between generations is bridged in the decision-making process to ensure the happiness and success of generations to come. It means the next generation has a say in how the family wealth will affect them, and how thus empowers them to consider how they can contribute to the legacy.

While family relationships may be the underpinning of any wealth transition, the truth is estate plans exist to take care of assets, not relationships. The best investment a family can make is working on improving trust and communication day-to-day. With these elements firmly in place, it ensures there is a strong foundation to secure their estate plan is properly implemented as intended. 

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Joining the Family Wealth Library means access to the information the legacy builders need to navigate family dynamics and protect our wealth. We can keep what is ours by managing familial challenges and building trust and transparency.