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Passing wealth to the next generation is tricky with history teaching us that fortunes are easily lost when the principal generator of wealth dies.

Family Offices are meant to ensure the next generation continues to enjoy and maintain the wealth.

This is very difficult because differences usually emerge after a death with competing priorities. Also as Family member numbers increase there is more pressure on investment resources. Some members of the family may feel they are working hard to maintain other members who are not pulling their weight.

This is where a stakeholder agreement between all the family members is a good idea. It sets out the basic terms of being part of the family office. What you can expect to get, what you are expected to do and how you should behave. If it does not suit you then there should be an exit procedure with compensation to ensure one member does not prejudice the others.

This is always going to be an underlying issue in a family office but should not be allowed to develop into an issue which becomes all consuming.

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