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Estate Planning 2013: Now What? A Must Read For Everyone by STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION)
Estate Planning 2013: Now What? A Must Read For Everyone by STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION)
We now know what the federal estate tax laws will be this year and in the future. Our federal government has stated that these estate tax rules are now permanent after a decade of uncertainty. (A cynic may say that these federal tax laws are permanent until our federal government says they are not!). Anyway, here are some of the more important federal estate tax law changes made on December 31, 2012 along with some related estate planning strategies: click here to read more…..
Family Office Expert Reveals Three Imperative Principles of Business Succession Planning
Family Office Expert Reveals Three Imperative Principles of Business Succession Planning
Public speaker and accountant Richard Muscio discusses “soft skills” (human factors) that wealth managers and CPAs miss when planning business succession strategies in this 5-minute presentation to a CEU class of financial planners in San Diego.
Today’s Wealth Holder and Tomorrow’s Giving: The New Dynamics of Wealth and Philanthropy by Paul G. Schervish
Click on Today’s Wealth Holder and Tomorrow’s Giving: The New Dynamics of Wealth and Philanthropy to read the article.
Increasing numbers of individuals are approaching, achieving, or even exceeding their financial goals at younger and younger ages. A level of affluence that had been rare has come to characterize large groups and even whole cultures. In the context of an ongoing intergenerational transfer of wealth, the author examines demographic and spiritual trends that are motivating wealth holders to allocate an ever-greater portion of their financial resources to charity.
Capacity for Care: Today, Yesterday, and Tomorrow by John J. Havens and Paul G. Schervish
Click on Capacity for Care to read the article.
Before we look at the post-boomers, we need to know that the boomers will keep fundraisers busy at least three more decades. They are wealthier in total and per household than any previous generation and are just now coming into prime giving ages. For now and for several decades, these boomers will increasingly become the prime prospects for charitable giving (both inter vivos and testamentary). They will receive the greatest wealth transfer in history. But a substantially larger transfer wealth will be given by them than was given to them.
What do family businesses need to do to continue to be successful?
What do family businesses need to do to continue to be successful?
Eric Andrew talks about the unique characteristics that have helped family businesses navigate the downturn successfully.
To learn more about the The PwC Family Business Survey 2012, click here.
Some Core Principles for Building a Legacy
To build a sustainable and positive family or business legacy, it is very important that the following key principles be incorporated into your dynastic planning process:
1) The entire family must be involved in planning and NOT just the wealth-holder or business owner. The goal for a successful multi-generational family/business legacy is to plan “with” your family and not “at” your family.
2) The agenda for each family or family business meeting must be open to include the needs and concerns of all family members who are affected by the financial, estate, business, or legacy plan.
3) Part of the common mission for each family and business plan should be the indisputable realization that family members are the real assets and NOT the money or business.
4) Communication expectations for everyone must be setup upfront. For example,
- Everyone has wisdom;
- We need everyone’s wisdom for the wisest results;
- All will hear and be heard;
- There are no wrong answers;
- The whole is greater than the sum of its parts.
5) The best legacy solution is one that considers the needs of future generations. A legacy plan should focus on the perspective of family wealth and the family business for at least the next seven generations.
6) A Family Constitution should be created to help with the Governance of the Legacy plan. The goal here is not to dictate the future to family members but to establish guidelines for dealing with conflicts, new opportunities, in-laws, extended family member dreams, and the future complexity involved with the growth of family members into the third generation onward.
7) Structures, and committees, must be put in place for dealing with, and implementing, the financial, estate, business, and legacy plans.
Remember that a wealthy family or a profitable business cannot create a strong family but a united family with a common mission can build wealth and a sustainable and profitable family business.
What is a Family Office?
What is a Family Office?
Over the years, Family Offices have been created to cater to the needs of wealthy families in search of expert planning advice. Here are some commonly asked questions:
What is a Family Office?
A Family Office is a private legacy wealth management service offered to ultra-high net worth families to centralize control over family finances, legal, tax and administration issues. It works to provide the best solution for building, preserving and transferring family wealth through the generations.
Why use a Family Office?
A Family Office is most commonly utilized because your assets have grown in size and complexity and professional management is now required. The world’s most affluent families have established Family Offices to ensure their wealth will be preserved for their future generations.
What are the benefits of a Family Office?
- One central hub for information, advice, and an approved collaborative network for all the family’s financial and legacy matters.
- Pooled purchasing power across the family group resulting in better services and substantially reduced costs.
- A dedicated team of professionals who are focused on each family member’s goals AND the family’s common mission in a completely confidential manner.
- Continuity of true wealth from generation to generation.
- Access to professional advisors who can educate family members about their responsibilities of ownership, management, wealth, and governance
- Managing substantial liquid assets generated through the sale of a business.
- Obtaining customized credit.
- Managing multi-generational needs and educating the next generations to be responsible stewards of wealth.
- Providing estate and financial planning concierge services
What are the responsibilities of a Family Office?
The Family Office is the key vehicle for wealthy entrepreneurs to manage their wealth independently from their businesses. The purpose of the Family Office is to provide peace of mind about managing wealth.
The scope of the Family Office is significantly broader than a pure investment advisory company. The objective is not only wealth optimization but also preserving the family legacy. The Family Office provides support for the following important functions:
- Financial Planning for the Family
- Understanding Family Governance/Objectives
- Evaluating and Consolidating Current Service Providers
- Risk Management
- Return Management
- Estate Planning
- Family Governance
- StrategicPhilanthropy
- Document Management
- Performance Monitoring and Analytics
- Concierge Services
How to Evaluate a Family Office Provider?
The selection of Family Office Services must be done cautiously:
1) Build Trust
Trust requires that the Family Office understands your needs and your family dynamics. Trust can be gauged from the ability of the representative of the Family Office to listen and understand your unique situation. As no one can be an expert in everything, the Family Office must be your strongest advocate to other professionals to achieve your goals.
2) Quality of Research
Check the resources dedicated to the Family Office research. The Family Office should be advisory in nature and not simply a product seller. This ensures independent advice and you are protected from owning products which are not in line with your asset allocation goals.
3) Leveraging Expertise
Who are the strategic network providers to the Family Office. The stronger the network, the better the service. .
What about your existing advisors?
Your existing advisors should be valued contributors to the Family Office. Rather than trying to replace your existing advisors, the Family Office should focus on complimenting the advice your other professionals provide to ensure that your ‘big picture’ goals for your wealth and family legacy are met.
How does Lugen Family Office work?
Our family office provides you and your family with a well established and trusted process:
How does Lugen Family Office help you optimize your wealth and legacy?
1) Discretion
Lugen Family Office is very discreet about using professionals and personnel that maintain client confidentiality at all times.
2) Comprehensive Services
Lugen Family Office has created a Strategic Network of world class institutions, firms, and professionals to ensure your Family Office needs are fulfilled.
Related articles
- Major Risks To Family Wealth (quadcitywealthplanning.com)
- Family Estate Planning Offices (lawprofessors.typepad.com)
- Managing far more than just money (todayonline.com)
