In examining the process of transitioning the ownership and management of a family business, this paper discusses pre-transition planning, considers the challenges of intergenerational ownership transfers vs. third-party sales, and proposes a framework for meeting family and business goals through the process.
Thoughtful planning before the sale of a business can yield many benefits to its owner, including ensuring the owner’s family is financially protected if something unexpected happens to the owner or the business before a sale, reducing potential family conflicts that may arise as a result of a potential sale and minimizing the impact of futur...
It has always been the case that courts could consider resources available to one spouse from a trust in deciding how to divide marital property or whether to award maintenance. However, there are trends in several states to make trusts a larger part of the process of dividing assets in a divorce. Because of these trends, it is not necessarily enou...
Preserving and managing tangible wealth in a complex and uncertain world can be a challenge. However, the greatest challenge individuals and their families might face is defining, reflecting on and expressing what their wealth really means.
Planning discussions about wishes are often reduced to how wealth should be distributed or utilized when the principal dies. However, wealthy individuals may be better served by a much broader discussion of how to build a family legacy that generates social and economic wealth, creates family unity and transcends time.
Selecting one’s home state as the situs may be a convenient or easy answer. However, the ability to implement a trust that may last forever, eliminate additional transfer taxes after funding and avoid state income taxes may provide the financial incentive to stray from home, or at least to consider it.
In this edition of Eton Advisor’s quarterly Investment Outlook, they conclude a series on goals-based investing with a discussion of integrative wealth management, where synergies are created by the marriage of wealth structuring, investment consulting, and ongoing implementation & execution. Without all three of these components wor...
Donors take care in planning their charitable giving over a number of years. As those plans unfold, however, natural disasters or tragic events can become an unexpected priority for giving. Ensuring that contributions provide the support intended by donors is not as straightforward as it may seem. Knowing the pitfalls that dot the landscape of...
Wealthy individuals need to play an active role in their wealth management, asking advisors the right questions and reviewing their answers regularly. This requires a solid understanding of wealth management principles and how to apply them in a variety of areas, ranging from personal tax planning to the transfer of a business.
Many wealthy families envision keeping a shared property in the family as a means of building family unity, harmony and legacy. A number of notable families have been successful at this, but many others find the reality creates the opposite of their intention.
The vitality and longevity of a mature family enterprise depend on three key value drivers: the family economic engine, including both business and financial assets; the family itself, its culture and members; and “leakages” that include both cash flow management and estate planning. By operating in this context so that you manage your ...
Entrepreneurial stewardship is the key to perpetuating family wealth through multiple generations. Stuart Lucas and David Lansky discuss some of the paradoxes of maintaining a healthy, wealthy multigenerational family and how to address effectively these paradoxes. The article explains how entrepreneurial stewardship can be a key to perpetuat...
Why is an American who has spent over a quarter century managing financial assets for his family cautioning you against selling your family business? The author urges you to think twice before selling your business.
With some care and effort, your family’s story can live on and grow with each new generation. This article describes the process of creating a family archive: a treasure trove of historical information about family decendants, business accomplishements and important events. Helpful tips such as archival vendors and types of materi...
This paper explores how private foundations can plan for changes in leadership in order to weather the transition as a cohesive, effective unit. Some of the risks and rewards of planning for change—or failing to do so—are discussed.