Video:

Advice-for-managing-familial-wealth

Informed financial planning for wealthy families

Author: Charles Gowlland, James Kirk (yBC.tv)

Categories: Family Business, Family companies
Tags: education, family meetings, high net worth families, Warren Buffet
Informed financial planning within wealthy families involves having good advisors and passing on knowledge early. In this TV show Charles Gowlland gives his advice for managing familial wealth.

Informed financial planning around the kitchen table

One of the most important things we feel for families, that not only came out of the results of this survey but is a continuing view of ours is that they need first and foremost to surround themselves with good advisors. Second to recognise the combination of education within the family is both a mixture of the formal, so with family meetings, and the informal, which is if you like the sort of gatherings around the breakfast table or the lunch meal or whenever, when the family are sort of mixing together. And in the latter informal category you might discuss things like the sort of family history and what the wealth means to the family and what the sort of characteristics are that are associated with that money. And once that kind of dynamic around the money is understood by the younger members of the family, they will be better equipped to understand how they in turn should use that money during their own lifetime and what is expected of them and to what degree, if you like the money is theirs to do with as they will and to what extent it if you like belongs to the wider family and they are merely tenants in their own lifetime. There are no rights or wrongs about any of this. Its really up to the family to decide, but equally advisors can help guide families and particularly we find with newer generation wealth, many of them like Warren Buffet and some other famous people in the news like that, they want to leave a lot of money to charities when they die, they don’t want to leave huge amounts of money to their children, others feel completely differently and they would rather leave, they feel that it’s family money and they should leave it to their children and who should enjoy it. So it’s entirely horses for courses. Inside Finance will continue to follow issues around informed financial planning. Look out for more great videos from our Smith & Williamson experts.
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