Wealth Creation
Families of significant wealth have unique needs and goals. At the Wealth Creation stage, the interests of the family go beyond the business to branch out into new endeavours and often involve more family members than just the original business owner. And with more individuals involved and opportunities in which to invest, so too comes new complexities and emotions to navigate. This is when business and family truly intertwine; and is commonly referred to as a family enterprise. At this point, the family’s needs are best served via a well-rounded holistic management approach. Picture the family enterprise akin to a successful operating company. Much like how successful businesses are run by a C-suite or full management team, a family enterprise should be approached in the same fashion. Family enterprises consist of a range of assets and require the same – or a higher – level of oversight and diligence as does a well-run operating business.
Wealth creation defined
As the family begins to see the benefits of growth and diversification, it’s at this time that the new generation may also start gaining access to and acquiring knowledge of the inner workings and intricacies of the family’s created wealth. It’s time to secure your legacy, identify financial goals and philanthropic objectives, and if not already done so, develop a comprehensive estate plan to ensure a successful estate transition.
Estate and tax experts should be guiding you in developing a will and estate plan from a pre- and post-mortem context. This plan could include non-resident beneficiaries, assets outside the country, a wind-up of investment companies and tax clearances, and integrate protection mandates and pre-mortem reorganizations of assets and companies, among many other considerations, depending on your specific situation. Every factor needs to be observed through a tax-efficient lens, and proper stakeholders (such as notaries, lawyers, and insurance brokers) need to be notified when significant changes are made to the current will and estate plan. Our estate professionals take care of all the details so you can rest easy knowing that your family’s best interests are taken to heart with a comprehensive plan when you pass.
Beyond ensuring your estate is established properly, this is also an important time to set your next generation up for personal success. Because when substantial inheritances are involved, family dynamics and emotions can run high, cause disruption, and even wreak havoc on the legacy, reputation, and substantial wealth you have worked so hard to create. A proper family office is one that guides not only your portfolio and personal wealth journey, but puts equal emphasis on family governance. At this inflection point, the beauty in working with Richter is that we already know you and your family as we have worked with you on the business side of your life, so as the needs of you and your family evolve to ones that require professional guidance, both on the emotional and personal financial sides, transitioning to our family office is seamless given a trusted relationship has already been established. And why the emphasis on the governance aspect of managing family wealth? Proper family governance is a key component for encouraging healthy communication among family members and establishes a framework wherein each family member feels supported in their quest to succeed and perhaps even become wealth creators in their own right, if they so choose.
Factoring in emotions and the goals of other family members or the next generation, a well-rounded family office is a support system, one that helps design, plan, and implement solutions to address new and existing needs and ambitions.
We tailor bespoke family office solutions for you, from financial planning and wealth management, to operational and finance support with our full suite of CFO services, to tax and estate planning, family governance, real estate investment advisory, digital security, philanthropic advisory and financial literacy. Your Richter Family Office C-suite oversees finance, operations, and lifestyle management, typically composed of a Chief Investment Officer (CIO), Chief Financial Officer (CFO), Chief Operating Officer (COO) and Chief Experience Officer (CXO). Integrating each role and working with external advisors ensures the alignment of goals and objectives to establish your legacy and prepare for intergenerational success.
As the focus is now turning to the more passive phase of wealth building, it is now time for the Wealth Transition stage, where planning, education, and governance are crucial to ensure continued success and legacy building.