Monday, February 13, 2017

Better Understand "the Family Steward" Of High Net Worth Families

By Mathew John


Families that have numerous assets they share in common are in a unique position. Unlike people who have little or no property or savings in cash, these families have many options when comes to deciding about how to manage their portfolios. Wealth management software can be instrumental in helping them communicate and share common goals.

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.

In most families there are individuals who are more closely bonded than others. It is sometimes difficult for them to trust or confide in the appointed steward of the family especially when some jealousy or power struggle breaks out. The person the majority of family members has chosen may not always be the most obvious choice to other relatives.

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.

The best way to do this is to use software which is designed to record and track non-monetary values and

relationships that allow families to communicate about these valuable assets.




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