04:34 am
June 23, 2017

Critical Wealth Leadership Role Transitions

In the wealth management field, there’s considerable focus on preparing the next generation for a transition of wealth, but spouses are likely to experience a transition first.

Discussion of the “great wealth transfer” estimates that $30 trillion will be inherited over the next 30 years, according to an estimate by Accenture. Of the top 1 percent of wealthy households, 95 percent are from the baby boomer generation-—76 percent made their own wealth, 87 percent of them are male, according to the Investment Management Consultants Association. Based on a 2014 U.S. Trust survey, 71 percent of those baby boomers are in their first marriage, and 76 percent of that group has children who will become next-generation stewards.

Wealthy female boomers who are 65 today can expect to live at least another 20 years, based on actuarial studies. In fact, it’s estimated that one out of three of them will celebrate their 95th birthday.

Given that husbands generally make the family wealth decisions, yet die before their wives, how do their spouses prepare to assume that role?

Many businesses dedicate significant time and resources toward succession planning. Similarly, large family wealth enterprises will benefit from planning for a smooth transition to subsequent decision makers.

The typical division of labor between married couples results in the spouses of wealth creators dedicating energies elsewhere for the family, such as raising children and managing the household. That can limit their involvement in the management of family wealth.

But the right process can support a smoother transition for a spouse assuming the key decision-making role. That process starts with the mapping, planning and management of the family wealth enterprise.

  • Mapping is critical to understanding every component of the family wealth enterprise, which will require leadership, governance and decision-making activities. It entails developing a comprehensive inventory of the family’s assets and liabilities, the ownership structures and associated decision makers, and the intended wealth-transfer plan. Analyzing the financial needs of the spouse and family and assessing cash sources and uses are important elements of the mapping process.
  • Planning happens after a comprehensive understanding of the components of the family wealth enterprise. This entails prioritizing what’s important: Will the wealth cover spending needs and enable a continued lifestyle? Are the proper providers in place to support the ongoing management of the enterprise? Are their fees and expenses appropriate? Do I have total control over decisions, or do others (such as trustees) participate?
  • Management determines how oversight and other ongoing decisions will occur. For spouses unaccustomed to making such decisions, this can be daunting without a comprehensive understanding of the mapping and planning components of this process. Experience shows that confident and prepared spouses are those who know what the family owns, what its financial needs are and how they’re sourced, and the plans for future transition of family wealth.

The transition from spouse to CEO of the family wealth enterprise should not be overlooked.

It should be noted that there are marriages in which partners share financial decision-making equally, as well as spouses who are financially successful in their own right, and spouses who are fully prepared to assume the responsibility of managing the family’s wealth.

Through a well-planned transition, spousal successors can collaborate with the next generation and thrive in their roles as caretakers of the family wealth and of the family itself. This component of succession planning is as critical for everyone-—today and tomorrow.

Julie Neitzel is a partner and adviser with WE Family Offices in Miami and a board member of the Miami Finance Forum. Contact her at Julie.Neitzel@wefamilyoffices.com or 305.825.2225.

75 comments

  • I am not certain the place you are getting your information, but great topic.
    I needs to spend a while learning more or figuring out more.
    Thanks for wonderful information I used to be searching
    for this information for my mission.

    Reply
  • We’re a group of volunteers and opening a new scheme in our community.

    Your website offered us with valuable information to work on. You have
    done a formidable job and our whole community will be thankful to you.

    Reply
  • We stumbled over here different page and thought I may as well check
    things out. I like what I see so i am just following you. Look forward to exploring your web page
    again.

    Reply
  • After looking over a handful of the blog articles on your site,
    I honestly appreciate your technique of writing a blog.

    I bookmarked it to my bookmark website list and will be checking back soon.
    Please visit my web site too and let me know your opinion.

    Reply
  • What i don’t realize is in reality how you’re no longer
    actually a lot more smartly-favored than you may be now.
    You are very intelligent. You recognize therefore considerably in relation to this topic, produced me personally
    consider it from numerous numerous angles. Its like women and
    men are not fascinated unless it’s something to accomplish with Lady gaga!
    Your individual stuffs great. At all times care for it up!

    Reply
  • I am really enjoying the theme/design of your website.

    Do you ever run into any internet browser compatibility problems?
    A number of my blog visitors have complained about my blog not working correctly in Explorer but looks great in Opera.
    Do you have any solutions to help fix this problem?

    Reply
  • Hi there! This is kind of off topic but I need some advice from an established blog.

    Is it very hard to set up your own blog? I’m not very techincal
    but I can figure things out pretty quick. I’m thinking about creating my own but I’m not sure
    where to begin. Do you have any ideas or suggestions?

    With thanks

    Reply
  • hi!,I love your writing very a lot! proportion we be in contact extra about your
    article on AOL? I require an expert on this area to solve my problem.

    Maybe that’s you! Looking forward to look you.

    Reply
  • Somebody essentially lend a hand to make seriously
    posts I’d state. That is the very first time I
    frequented your web page and to this point? I surprised with the analysis
    you made to create this actual put up amazing.
    Great process!

    Reply
  • That is a really good tip particularly to those fresh to
    the blogosphere. Simple but very accurate info… Many thanks for sharing this one.
    A must read article!

    Reply
  • I have read a few just right stuff here. Certainly worth bookmarking for revisiting.
    I surprise how so much attempt you set to create this kind of excellent informative site.

    Reply
  • Right here is the right webpage for everyone who wishes to find out about
    this topic. You realize so much its almost hard to argue with you (not
    that I personally will need to…HaHa). You definitely put
    a brand new spin on a topic that has been written about for a long time.
    Great stuff, just wonderful!

    Reply
  • I was recommended this website through my cousin. I’m no longer certain whether or not this
    post is written by way of him as no one else know such targeted approximately my trouble.
    You’re amazing! Thank you!

    Reply
  • Hi to every body, it’s my first pay a quick visit of this webpage;
    this blog consists of amazing and genuinely good stuff in support of
    visitors.

    Reply
  • Wow, marvelous blog layout! How lengthy have you ever been blogging for?

    you made blogging glance easy. The whole look of your website is wonderful, as neatly as the content material!

    Reply
  • You can definitely see your skills within the work you write.
    The arena hopes for more passionate writers such as you who aren’t afraid to mention how
    they believe. Always go after your heart.

    Reply
  • I loved as much as you’ll receive carried out right here.
    The sketch is tasteful, your authored material stylish. nonetheless, you command get got an edginess over that you wish be delivering the following.
    unwell unquestionably come further formerly again as
    exactly the same nearly a lot often inside case you shield this increase.

    Reply
  • I’m curious to find out what blog system you
    happen to be utilizing? I’m experiencing some minor security
    issues with my latest website and I would like to find something more
    secure. Do you have any suggestions?

    Reply
  • I’ve learn a few excellent stuff here. Certainly
    value bookmarking for revisiting. I surprise how a lot effort you
    place to make this kind of magnificent informative web site.

    Reply
  • Great post. I was checking continuously this blog and I’m impressed!
    Extremely helpful information specifically the last part :
    ) I care for such information much. I was seeking this particular information for a long time.

    Thank you and best of luck.

    Reply
  • We are a group of volunteers and starting a new scheme in our
    community. Your web site provided us with valuable
    info to work on. You have done a formidable job and our entire community will be
    thankful to you.

    Reply
  • Hey I know this is off topic but I was wondering if you knew of any widgets I could
    add to my blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for quite some
    time and was hoping maybe you would have some experience with
    something like this. Please let me know if you run into anything.
    I truly enjoy reading your blog and I look forward to your new updates.

    Reply
  • My brother recommended I might like this blog.
    He was entirely right. This post truly made my day.
    You cann’t imagine just how much time I had
    spent for this information! Thanks!

    Reply
  • Hmm it seems like your website ate my first comment (it was extremely long) so I
    guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new to the
    whole thing. Do you have any helpful hints for rookie blog writers?
    I’d certainly appreciate it.

    Reply
  • hello there and thank you for your information –
    I have definitely picked up anything new from right here.

    I did however expertise a few technical points using this site, as I experienced to reload the web site many
    times previous to I could get it to load correctly.
    I had been wondering if your hosting is OK?
    Not that I am complaining, but slow loading
    instances times will very frequently affect your placement in google
    and can damage your quality score if advertising and marketing with Adwords.
    Anyway I am adding this RSS to my e-mail and could look out
    for much more of your respective interesting content. Make
    sure you update this again soon.

    Reply
  • You are so interesting! I do not believe I’ve truly read a single thing like this before. So wonderful to find another person with some unique thoughts on this subject matter. Really.. many thanks for starting this up. This web site is one thing that is needed on the web, someone with a little originality!

    Reply
  • You actually make it seem really easy together with your presentation however I in finding this topic to be
    really one thing that I believe I might never understand. It sort of feels too complex and extremely extensive for me.
    I’m having a look ahead for your next put up, I’ll try
    to get the hang of it!

    Reply
  • My spouse and I stumbled over here different web page and thought I should check things out.

    I like what I see so i am just following you. Look forward to looking at
    your web page again.

    Reply
  • After looking into a handful of the blog posts on your blog, I
    honestly like your technique of blogging. I saved as a
    favorite it to my bookmark webpage list and will be checking back
    in the near future. Please visit my website as well and tell me what you think.

    Reply
  • I’m curious to find out what blog system you have been using?
    I’m experiencing some minor security issues with my latest website and I would like to find something more safe.
    Do you have any recommendations?

    Reply
  • It’s a pity you don’t have a donate button! I’d without a doubt donate to this outstanding blog!
    I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account.
    I look forward to new updates and will talk about this website with my Facebook group.
    Chat soon!

    Reply
  • I’m no longer positive the place you are getting your information, however good topic.
    I must spend a while learning more or understanding more.
    Thanks for great information I was on the lookout for this info for my mission.

    Reply
  • hey there and thank you for your information – I have definitely picked
    up something new from right here. I did however expertise a few
    technical points using this website, since I experienced to
    reload the website many times previous to I could get it to load properly.
    I had been wondering if your web host is OK? Not that I am complaining, but slow loading instances
    times will sometimes affect your placement
    in google and can damage your high-quality score if advertising and
    marketing with Adwords. Well I’m adding this RSS to my e-mail
    and can look out for much more of your respective fascinating content.
    Ensure that you update this again soon.

    Reply
  • When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a
    comment is added I get three e-mails with the same comment.

    Is there any way you can remove me from that service? Thanks a lot!

    Reply
  • Hi there, i read your blog from time to time and i own a similar one and i was just curious if
    you get a lot of spam responses? If so how do you prevent it,
    any plugin or anything you can recommend? I get so much
    lately it’s driving me insane so any support is very much appreciated.

    Reply
  • Thanks for finally writing about >Critical Wealth Leadership
    Role Transitions – South Florida Business And WealthSouth Florida Business And Wealth <Liked it!

    Reply
  • I’m not sure where you’re getting your information, but good topic.
    I needs to spend some time learning much more or understanding more.
    Thanks for magnificent info I was looking for this information for my mission.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *