¨    Wealth Creation.   Wealth preservation requires serious attention to further wealth creation.  The financial status quo can be eroded by growth in the family, unavoidable levels of tax, and declines in the relative performance of investments.  Of these factors, the last is the most avoidable.  Everyone recognizes that the future prospects for a family-controlled business, or a concentrated stock position, cannot be judged entirely by the successes of the past.  Conscious discipline is necessary to avoid falling into the grip of inertia.   Details

¨    Wealth Succession.   As a corollary principle, the need for management succession planning is not limited to active businesses, but also includes all circumstances where younger generations will inherit control of wealth. Succession in the ownership or control of wealth can be more carefully managed if it is gradual and begins early enough to allow for adjustments to address the mistakes that accompany almost all transitions. Passing some assets to the next generation at a time in their lives when they can actively manage that additional net worth over a long-term horizon can also promote financial maturity. Completely postponing a transition until events force a change is more likely to lead to misunderstandings, oversights and disappointments. Paradoxically, many of these risks are often overlooked or neglected because they are so obvious.   Details