Human capital is family wealth
Research shows that families with generational wealth experience unique challenges that can be an impediment to the next generation’s ability to develop a healthy self-identity and becoming self-motivated to find purpose in life. Preservation of family wealth requires prudent estate planning and timely implementation of strategies for minimizing wealth transfer taxes to maximize family assets passing to beneficiaries. Still, sustaining shared family wealth across several generations where co-ownership of assets necessitates family members to be aligned in purpose and vision means going further and deeper.
A family’s wealth consists of more than just the financial assets, albeit this is traditionally where most families and their wealth advisors focus their attention. With generational wealth, assets will undoubtedly outlast the wealth creators and their children. If the wealth creators seek to pass their fortune to multiple generations, then family members must acquire the skills necessary to work together outside of (but mindful of) their familial relationships. Put another way, initiate a family strategic plan for developing and nurturing the human capital.
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