The big wealth transition is now underway, with ownership of more than 60% of family enterprise expected to be handed off within the next decade. With the input of business owners and Family Enterprise Advisors, this report takes an in-depth look at transition planning and how family business leaders can prepare their family, as well as their business, for this imminent transition of wealth, ownership and leadership.
Family Governance
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As families transition into another year navigating the pandemic’s unknowns, the need to prepare for succession and practice decision-making is greater. In this Tolleson Insights podcast episode, Richard Joyner shares why prepping for a family’s future and helping eliminate the “what would happen if…” is essential.
Enterprising families are acutely aware of the threats and opportunities that influence their sustainability. Through the data and insights gained from this report, we aim to deepen the collective understanding and importance of the next generation and their hopes and intentions when it comes to their family business and legacy. This report also includes key questions and insights on the transition of ownership, including intentions, timelines, and perceived barriers to and within family ownership transition.
Most business owners know that proper succession planning can help keep their business running strong into the next generation. They understand the importance of creating a plan to prepare heirs and key employees to run the business when it is time. In taking a different approach and applying the lessons learned, a list of seven “worst practices” is provided to help families prepare for an unplanned business transition.
The following presentations are offered to FOX members in an editable format for members to use.
Your fellow FOX members have contributed these family legacy and leadership planning tools and samples. Please note that these samples have been provided for illustrative purposes only, and may not represent the latest versions.
Although high-net-worth families and individuals recognize the importance of instituting formal family governance structures, doing so presents a complex task. For families who are committed to creating a flexible and durable system of governance, the benefits are lasting.
Marie Tillman was thrust into the spotlight on April 22, 2004, when her husband, former Arizona Cardinals safety Pat Tillman, was killed in a barrage of friendly fire in Afghanistan. Only a week after Pat’s death, as donations from strangers poured in to support the Tillmans, family and friends decided to establish The Pat Tillman Foundation in honor of Marie’s late husband. "Having the foundation to focus on was such a gift," said Marie. "I was able to take the time to heal because I knew I was doing something positive.”
It is an unfortunate fact of life that, as we age, our cognitive powers often decline. To assist people as they reach this stage in their lives, states provide a mechanism by which a person’s friends and family may petition a court to declare him or her incapacitated, and for the court to appoint a guardian to manage his or her affairs. While the guardianship process is meant to assist people in cognitive decline, it also exposes them to considerable risk. However, there are steps that you and your family can take to minimize those risks, including designating a preneed guardian.
For insights on integrated wealth planning, this issue of The Advisor presents a view from the top with Joe Kahn, The New York Times Managing Editor, the impact of globalization 2.0, and the U.S. presidential election 2016 and the candidates’ tax platforms. Also in this issue are the best practices in providing age-appropriate transparency when it comes to discussing a family’s wealth plan. Following it is the takeaway on the advantage of Delaware’s laws on directed trusts.