From geopolitical uncertainty to real estate bubbles, the world is full of risks to investment portfolios. Yet the biggest threat to a family losing its wealth over generations may be internal. Fights over succession planning or individual investment decisions can pull a family — and its hard-earned fortune — apart. Here, wealth managers and multigenerational businesses share some of the most effective advice they’ve given on how a family can build a solid governance structure that will stand up against both external and internal threats to a legacy.
Avoid intergenerational resentment
Anthony DeChellis - CEO, Boston Private Financial Holdings
Unite around shared values
Amy Szostak - Chief Fiduciary Officer of Family Education and Governance, Northern Trust
Too little risk is risky
Matthew Fleming - Head of Family Governance and Succession, Stonehage Fleming
Build incentives and limits into trusts
Thorne Perkin - President, Papamarkou Wellner Asset Management
Ensure professional management
Willem van Eeghen - Former Managing Director, Van Eeghen Group
Money leaves faster than it grows
Chris Cecil - President, Biltmore Family Office
Bring in an outsider
Alvina Lo - Chief Wealth Strategist, Wilmington Trust