Page 10 - FOGlet 4

Wealth transfer to

the next generation

By Penny Lovell

he Dalai Lama says, “Open your responsibility of inheriting a family fortune.
arms to change, but don’t let go of A common focus among those we spoke
your values”. These feel like words to was education. How young is too young
Tto live by when the world of to prepare the next generation for taking on
finance is going through such a period of the mantle? Should all those due to inherit
transformation. Digital banks, blockchain, be trained in finance? While each family
biometrics, contactless wearables... the list had a unique approach, with their own set
of new developments altering how we of values and priorities, everyone we spoke
interact with money is endless. And it is not to has a profound respect for the lessons
just a fintech revolution. Cryptocurrencies, they’d had passed onto them from the
peer-to-peer lending and impact previous generation, or that they had
investments are just a few of the gleaned themselves through hard-won
preoccupations forward-thinking family experience.
offices are navigating in order to make the So here are the top ten pearls of wisdom
right decisions about what to do with from our report, for making a Family
capital and then how to manage it. Fortune go further.
While none of us can predict the future,
1. “Try to save half and spend half. That’s
there’s plenty to be learned from the past.
what I was always taught: consider a
Our latest Family Fortunes report , a joint
worst-case scenario, prepare for the worst,
development by Sanlam and Global
hope for the best, all the time.”
Partnership Family Offices, has been a
revealing opportunity to unearth pearls of
2. “It can all go, it can all be taken away.
wisdom from individuals at the coal face of
Don’t take it for granted. That’s the
managing family wealth.
difference between entitlement and
Compiled from 15 in-depth interviews,
privilege.”
and many more informal conversations
with very wealthy families, the report 3. “The biggest thing that I learnt from my
explores the complexity of passing on an parents is how to be cautious, but not
inheritance today. This ranges from overly so.”
decisions about investment and succession
planning, to the many emotive issues 4. “Keep things simple. It allows me to find
around philanthropy, mental health and true happiness from things not linked to
personal vocation that come with the money at all.”

8 www.gpfo.co.uk Foglet 4th Edition