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Wednesday, February 8, 2017

Why Wealth Management Software Is Useful For Family Communication

By Mathew John


When working with high net worth families, it is easy to see them as homogenous. Of course, they are not. They are made up of individuals the same as any other group. However, it is important for these families to have a solid sense of their own traditions and values.

Many times heirs choose a single member to make the decisions concerning their finances. They may do this formally or just have a mutual agreement among themselves. Often times it may be preferable to formalize the relationship in order to avoid potential conflicts and confusion within a family. It is not unusual for the heirs to appoint someone within their family to represent them who has a history of successful business experience.

Not all family members get along, and some may be closer than others. There may be heirs who do not feel comfortable with the trustee or family steward the majority has chosen to speak for them. It's not unusual for power struggles and intrigue to occur within the family unit. This is especially true when the chosen representative is not one that many would have expected.

Getting information from every family member about their values, about how they see the family traditions, and about the relationships within the family can help you identify who is really key to perpetuating tradition. Whoever this person is, it is important to work with them to help the family stay together, avoid disputes, and reduce the risk of wealth not surviving into the next generation. Many high net worth families do indeed lose significant amounts of wealth when the head of the family passes. Stewardship is an important way to ensure that it is retained and that the family does not split over the inheritance.

Using modern technology to manage the family portfolio is a great way to keep all the heirs informed about the profits and changes.

Feeling involved in the process generally inspires confidence in the chosen representative.




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