Select Page

It is essential for families – especially families with a business – to carefully craft financial plans. Being proactive for one’s finances is the best way to take control while creating a path to success or creating a succession plan for the future generations.

Most people think that family wealth planning occurs during two occasions – transitioning wealth to the next generation and running a business. While planning is critical for those two elements, they are far from the only reasons to form a plan.

Start Planning Now

There is no such thing as starting too soon, especially when finances are involved. The first step in any process is to evaluate what the current financial situation is. Following that, one should define their idea of financial success – and start charting a course to get there.

Reaching out to a financial advisor is another appropriate first step in this process. Financial advisors are trained to help families, individuals, and businesses and know the best ways to plan for the future. 

Narrowing It Down

There are several different ways to narrow down a financial plan. The easiest way to find the right path for you, your family, or your business is by asking some basic questions. Questions such as:

  • Who will be responsible for making financial decisions? Who gets a say versus who doesn’t?
  • Who will be involved in the management of family finances and assets?
  • Do all the family members (involved) understand their roles in this process? Are they comfortable with it?
  • What are the goals for financial planning?

It helps to know if only one family member will be making the critical decisions – or if all family members will be involved. For example, if one family member sets up a plan for future generations, the best route may be a family trust.

Additional Concerns

Families concerned about wealth planning should remember to take every detail possible into account. Naturally, it is essential for those running a business to pass on all vital information regarding operations and finances.

Other concerns for families to consider would be potential legal considerations. Are there any roadblocks for setting up a trust, passing down the family business, or otherwise passing on certain wealth? These roadblocks could be tax-related or due to other investors.

Finally, don’t forget to take details such as life insurance into account. While it is a sad thought to consider, life insurance policies can and frequently do impact a family’s financial situation.

This blog/website is only made available for educational purposes. It is designed to give visitors general information and a general understanding of select financial topics. It is not intended to provide specific financial or investment advice. Conduct your own due diligence or consult a licensed financial advisor/broker before making any and all financial/investment decisions.