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Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order by Tom McCullough, Mark Haynes Daniell

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Chapter 7

Structuring Assets and Aligning Investments to Serve Multiple Purposes

Family wealth almost always has multiple purposes, and substantial wealth carries with it the potential to serve multiple generations as well. As such, the structuring and oversight of family wealth should clearly reflect these different purposes and support the realization of a family’s long-term financial objectives.

Asset structuring can be employed to serve multiple purposes: institutionalizing family values, limiting risk and distribution to allow wealth to endure across multiple generations, and creating an opportunity to fund nonfamily philanthropic ventures.

Multiple Nonfinancial Purposes to Consider as Well

Financial capital can be invested for lifetime use or legacy purposes, for income or capital preservation, for family or philanthropy, or for one individual or group within the family or another.

The financial factors in generational planning are key considerations, but there are many other factors to consider as well. Equally important are the personal issues of avoiding loss through litigation, marital disputes, profligate or incapable heirs, family discord, economic upheaval, and even expropriation due to political or other unforeseen events. Careful planning can help ensure that family wealth is successfully protected and preserved across many generations and through many economic challenges.

While not all risks and disasters can be anticipated and managed in advance, a sound approach ...

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