EST2403. Fostering Longevity for Family Wealth and Legacy: Critical Structural and Governance Decisions

Building great wealth is usually the result of determination, risk-taking, persistence and admittedly some luck along the way. But building lasting, generational wealth, requires strategic vision and a plan. Families with significant multi-generational wealth must make key structural and governance decisions to put the family in the best position to steward the family wealth, nurture the family values and meet the needs and expectations of the younger generations. Structural choices to help manage family wealth may include: family offices, private trust companies, co-investment vehicles, trusts and private foundations. Key elements of a successful family governance process typically include communication, next generation education and development, family member well-being and conflict management. The families who think holistically and attend to these areas, in addition to the administrative, investment and operational functions, are the ones most likely to achieve their goals. This presentation will explore some of these critical decisions and share best practices of successful families gleaned from over 30 years of working in the field.

Learning Objectives:

• Recall the history, evolution, and growth of family-led entities and family offices in the US.
• Identify the catalysts driving families to seek family offices and other shared family wealth structures.
• Recognize legal structures used to manage shared family wealth including: A trusts, single family offices, single family offices with profits interest, private trust companies, pooled investment vehicles (including tax and regulatory considerations), and private foundations.
• Analyze key decisions/considerations families make regarding structure, approach to services, staffing and compensation, operational issues, and costs.
• Identify key governance considerations, including challenges to family wealth and proactive practices of successful families.