A loss in family communication and trust was the main cause of failure, and indeed, a lack of trust almost guarantees a wealth transfer failure. This may be the toughest to tackle the three specific causes for failure, as it requires constant attention and care, and no finish line is available. It needs the whole family's engagement, not just mom and dad, and the dynamic changes as the family evolves. Interests and views change over time; new members join the family by marriage–and sometimes go for a divorce exit.
Most families rely from time to time on a trusted advisor to
encourage communication with the community. That may be the formal
role of a lawyer or financial manager, but it may also be a
minister, friend, educator or more distant family member's informal
engagement.
A third party who cares deeply about the family can often provide
an unbiased viewpoint, encourage the family to have discussions and
simply offer a loving insight into family dynamics. Depending on
such a person is not a sign of weakness–if anything, it is a sign
of strength and a display of the urgency with which the family
embraces the value of transparent, honest communication.
Monarch to mentor: Delivering power depends on positive legacies. One of the main problems with wealthy families is matriarchal and patriarchal reluctance to give up control. Advisors may play a key role in helping family elders transition from a leadership role to a coach, educator, and supporter role. Transactional traps: solely transactional gifts without a vision or a simple, well-thought-out justification can lead at best to misunderstanding and, at worst, to waste of cash. Gifting should not be seen simply as a technique of tax avoidance. Advisors must help their clients create a vision of what they want to accomplish by gifting, and work with them to express that vision to recipients.
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