How can wealthy families maintain family harmony?

The current saga swirling around one of the UK’s most prominent families begs one important question – could all of this have been avoided?

All families know that harmony is not always guaranteed and most of the time things can be patched up informally. But when it comes to wealthy families, the stakes are higher and the complications are deeper. Conflict is something that needs to be anticipated ahead of time.

The maintenance of family harmony within wealthy families requires a proactive and structured approach. Wealth can provide great opportunities, but it also introduces potential stressors. A structured strategy can help navigate these challenges, ensuring the family remains united across generations.

A structured strategy could include regular family meetings, providing a forum to plan ahead and air any existing grievances. Drawing up some kind of family constitution or charter can establish an essential foundation for a family to build upon and refer to. Formalising a process for conflict management within a family can prevent small disagreements spiralling into larger ones. Perhaps utilising a trusted outside mediator could work for some families that want that extra bit of organisation in the arrangement.

Finally, it is advisable for the senior members of the family to involve younger members in decision-making if possible. Allowing younger members of the family to feel more ownership of any family plans could go a long way to creating that much-needed harmony.

At W1M, we have years of experience helping families maintain family harmony and preserve their wealth. We help families see the value in placing a structure around their affairs and managing conflict sensibly through a thoughtful process. Get in touch with us today to speak to one of our advisers.

What is family wealth?

 Family wealth covers a far broader spectrum than most people realise. Assets such as cash and property spring instantly to mind, but they are far from the full story. If you want to have a true picture of wealth in a family, you need to include both tangible and intangible assets. Wealth management tools such as inventories, consolidated reporting and net worth statements can provide clarity around physical assets, but it is also important to appreciate the less obvious aspects of family wealth that bind everything together such as social capital, networks and education. These often-neglected aspects of family wealth can prove to be the most valuable and need to be understood as such by everyone.

What is Estate Planning? 

Estate planning is a process that allows someone to manage their assets while they are still alive in order to ensure their affairs are taken care of according to their wishes once they have passed away. Responsible estate planning can benefit a person’s family and anyone else that potentially relies on the estate, such as a charity or employee. Discussing the definition of estate planning with your family will ensure they are fully engaged with the process.

An individual’s estate is made up of everything they own, minus their liabilities. An estate can constitute various different types of assets and typically includes things like property, land, cash, securities, vehicles, companies, art and furniture. Every estate will be different and it is important to cover every angle when looking to document someone’s possessions.