Wealthy families have always existed. Families tend to become rich by someone doing something special like being a really good entrepreneur. Often the general thought is to develop a good idea into a successful business and eventually sell it off for good money. In an ideal world, the next generations can then live off the spoils. Unfortunately, as we all know, there is no such thing as an ideal world.
Families will want to keep the business in the family and will eventually make (serious) mistakes. These might bring the once thriving company down. So what can be done to ensure the long term stability of wealth?
Although being the eldest son is surely no guarantee for success in the family business, such was how successions were historically done. However, with family ties evolving, nowadays we are sometimes faced with composed families such as with half-brothers and sisters, multiple step-parents... Siblings who do not work in the family business will have different needs and expectations than those who do. Some of the children might also not be of age to work for the family business: other solutions will need to be found until they become adult.
To ensure that the upcoming generation is well prepared to ensure that the family keeps on striving, education is key. An entrepreneur may be very astute in negotiating with financial intermediaries, but this might not be the case for his children or, when children are minor, his spouse. It is imperative to prepare the whole family for things to come, before they become urgent.
In case you need informationtive than an independent consultant with no ties to financial institutions to train weal and support, please feel free to connect with Frans via Finlight. There is no better alternative than an independent consultant with no ties to financial institutions to train wealthy families for such challenges.