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One of the greatest concerns among wealthy parents is that the family’s great fortune might inadvertently lead to misfortune for their children. Raising responsible children in affluence is a life-long task requiring patience and persistence. Like learning to read, financial literacy is a process that is best started in early childhood. Teachable moments, alongside practical ways to teach children about wealth, are the beginning of financially responsible parenting.

Wealth transfer to younger generations is one of the biggest concerns for families today. Many families feel that the younger generations aren’t ready to handle the wealth they’ll receive; in fact, only one-third of wealthy parents have fully disclosed their wealth to their children. The perceived unpreparedness, along with a concern for privacy and wealth preservation or asset protection, are some of the key non-tax reasons that many families establish trusts.

A 678 Trust is a unique vehicle that (i) eliminates estate tax on trust assets, (ii) protects trust assets from creditors, (iii) allows the client to stay in control of the assets, (iv) allows the client to direct where the assets pass at death, and (v) has multi-generational “dynasty” benefits—protecting heirs from creditors, divorce, and estate tax when the heirs die.

Estate planning and wealth management involve the founder’s goals, family and assets. Unresolved substance use disorders (SUDs) will undermine the best plans and intent in all three areas. However, trustees and attorneys frequently overlook clients engaging in addictive behavior because they are unaware of the symptoms of the disease, don’t know what to do or don’t believe it’s their role to become involved.

Sidney Reso, president of Exxon Company International, was kidnapped from the driveway of his home and ultimately murdered in 1992. Edward Lampert, one of the nation’s wealthiest investors, was kidnapped in the parking garage of his offices in 2003 and was released after promising $5 million to his kidnappers. These are only a few examples, but events such as these have led to an increased use of executive protection services by wealthy families in order to better protect and safeguard themselves, their loved ones, and their property.

The low interest rate environment presents a number of opportunities to advantageously move assets between family members, including the currently popular practice of intra-family lending. It may seem as if lending within the family can be a casual affair, but those who explore the option should be sure they are taking the right steps to truly create a “win-win” scenarioDo it by the bookInvestigate creative loan optionsMake the most of existing trusts

“The cobbler’s children have no shoes,” refers to the phenomena where people who are successful at doing something spend so much time on their own professions that they neglect to take care of business close to home. In the folktale, the cobbler’s children had holes in their shoes because he was so busy repairing the shoes of other people that he neglected his own children, writes Robert Jordan, Jr., CEO of Video Family Biographies.

Families experience significant and sometimes difficult changes over the years as elders pass on and new family members grow into leadership roles. What worked for a two-generation family with five members may not work when the family reaches the fourth generation and now involves multiple households with varying wealth structures.