Welcome to our series on “Generational Wealth Planning”. In this edition, we will further our discussions around the “7 Ages of High Networth Individuals (HNW) and Family” and our focus would be on Age 1: Infancy “The Modern Family and Wealth”.
Who is family? This question may seem obvious or unconsciously easy to answer. For some, the response to the question may not seem to be a big deal and should be clear cut. However, in families of wealth, who is considered as family is very significant and has immense implications in context of generational wealth management and sustainability.
Family can be any of:
- A nuclear family of parents and children;
- A blended family of partners and children from more than one relationship;
- A multi-generational family or network of families who descend from a known ancestor;
- A mixed family that extends beyond blood relatives to include those with other kinship ties.
The modern family is made up of a blend of multi-jurisdictional families, cohabiting families, mixed-ethnicity families, same-sex relationships, and non-biological children.
Modern families can often be complicated families: they can be challenging, diverse, intricate, and all over the map!
Across the globe, more and more people are part of ‘non-traditional’ families, e.g., divorced with children, second marriages, single parents, or same-sex couples. There is a coming together of blended families which are increasingly becoming common.
How are trusts adapting to the new social norms?
Children are increasingly likely to experience a variety of family arrangements because of increases in divorce rates, cohabitation, remarriage, and even surrogacy. Given these trends, families can use trusts to set assets aside for the future and protect their wider and more fluid family interests.
Trusts remain an attractive instrument to provide for children. They can help transfer assets and protect the surviving spouse. An advantage is that a living trust may be less contestable than a Will, which in the case of internal division, conflict or disagreement among surviving family members can be advantageous and ensure that the assets will be available to meet different needs of the surviving family members.
Modern families can often be complicated families: they can be challenging, diverse, intricate, and all over the map – often literally – and their needs are equally complex. Identifying and navigating their needs requires expertise and collaboration across borders, cultures and professions. (Meeting the Needs of Modern Families, STEP And TMF Group Publication 2021).
We would be examining the other Ages of High Networth Individuals (HNW) and Family in subsequent editions of this Newsletter.,
In the mean time, our following newsletters will be insightful to you:
1. Generational Wealth Planning – Operational Insights In Utilising Trust
2. Generational Wealth Planning: Use Of Trusts
3. Professionalizing the Family Business
As part of our Private Client services, we have experienced Trust and Estate Planning Advisors ready to assist you to develop an estate plan that protects, preserves and sustains you and your family’s wealth for generations.
Get in touch with one of our professionals today by sending a mail to firstname.lastname@example.org