Wealth stewardship is of prime importance for ensuring that future generations are prepared and fully capable of safeguarding hard-earned assets. The strategic preparation of the next generation allows for the long-term survival of wealth or the family business. Although many families realise the need for preparing the next generation, they lack a comprehensive and strategic succession plan. Studies show that 70% of family wealth is lost by the end of the second generation. In fact, only a third of all family businesses successfully make the transition to the third generation.
A lack of adequate communication amongst family members and unprepared heirs is one of the underlying factors that impedes the smooth transition of wealth. Communication with the Next Generation is key, as is the need to nurture and enhance their entrepreneurship skills. W8 Advisory has outlined a plan in the following article… (to read the full LinkedIn article by Bimpe Nkontchou, please click here.)