Chapter 6 Purpose: the foundation of a successful family strategy
The discussion and agreement of an ultimate purpose of a family’s wealth is the single most important prerequisite for its successful protection and preservation through the generations. This conviction has been at the centre of our Four Pillars of Capital reports since their inception. Purpose is the foundation on which all four of the pillars of capital are built. In the management of intergenerational wealth - just as in business - clarity of purpose is all-important if ambitions are to be realised and objectives achieved.
The recent acceleration of political and economic volatility has crystalised for many respondents the importance of having a clear sense of the purpose of their wealth.
Two thirds of respondents have not however discussed and agreed the purpose of their wealth within their family.
Maintenance of the family legacy, care of family members, achieving philanthropic goals and fulfilling religious responsibilities are four common themes in respondents’ philosophies.
The Stonehage Fleming View
A clear sense of purpose is the foundation that underpins all four pillars of capital - the challenge is ensuring that this purpose is articulated, shared and understood.
The more the Next Generation can be included in discussions of the family’s shared purpose, the better.
Conversations around purpose are not always easy; external support from advisers with practical wisdom can be a huge help.
For a significant number of respondents, it is the acceleration of political and economic volatility ... which has crystalised their thinking.
DOES YOUR FAMILY HAVE AN AGREED PURPOSE OR PHILOSOPHY FOR ITS WEALTH?
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