Non-Financial Aspects of Wealth

The American Bankers Association Wealth Management and Trust Conference hosted a session on non-financial aspects of wealth including family dynamics, family legacy, and family relationships. Family business owners have reported that their top two concerns are resolving conflicts among family members who are part of the business and developing a succession plan.

The speakers recommended a book entitled, Preparing Heirs. The book cites that 70% of wealthy families lost control of assets in wealth transfer. Sixty percent of those losses are due to non-financial issues.

Advisors need to understand their clients and help them understand the developmental nature of wealth. Many clients are new to wealth and for those clients, it is especially important to discuss wealth stewardship and preparation of heirs. For those who have been around wealth for several generations, they need help managing risk and finding meaning in life.

See Managing the Human Side of Wealth, Private Wealth, Mar. 16, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.