Wealth of Wisdom

CHAPTER 32Assessing Your Family's Financial and Family Management Needs

Scott Hayman and Tom McCullough

Most wealthy families have a lot going on—in all the diverse components of their lives, including their financial, tax, and legal affairs, businesses, investment activities, family interactions, and administration. Many families find it a challenge to stay on top of all these elements and, if they are honest with themselves, don't always feel confident that every aspect is handled properly or is managed in an integrated, internally consistent manner.

This can cause a whole series of issues:

• Concern that something important will be missed, which could cost money or throw off other decisions
• Worry that they have not done sufficient due diligence and will make a poor decision
• A lack of integration where decisions need to be aligned
• Concern that a particular component of the family strategy is not being properly managed
• Uncertainty about the appropriateness and longevity of some of the family advisors
• Worries about succession and transition
• Poor coordination and communication in the family about important issues
• Anxiety about the appropriateness or transparency of fees
• Dropped balls among various advisors
• Poor governance and decision-making structures and process
• Family conflict due to differing expectations and communication
• A general lack of confidence about the overall management of their affairs, or a vague sense of unease and uncertainty that everything is not “alright” ...