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5 Guidelines to Generational Wealth Planning

Here is an alarming statistics- 60% of families lose their wealth in the second generation. And 9 out of 10 families lose their fortune by the third generation. If you are family-oriented, then this statistic should worry you.

What could be the cause of the loss of family wealth? And how can you preserve your family’s wealth through generations? Well, poor planning is the culprit for failure in any endeavour, including generational wealth transfer. Families that have clear plans on how to transfer its wealth from one generation to the next, stands a better chance at successfully transfer its wealth past the third generation. Here are 5 guidelines to follow when planning your wealth transfer

Protect your assets.

Protecting your family assets will guarantee financial security from generation to generation. Protecting family assets also involves establishing new assets, cutting taxes and putting structures in place before funds are accessed.

Protect your values.

Yes, this may be intangible, but equally important. Your family values, stories, and ideals must also be passed down through generations to ensure enduring family wealth. Values such as self-respect, service to the community and giving will help future generations understand how the wealth was created in the first place and be able to protect the wealth.

Use trusts.

Trusts and funds can protect your family’s wealth from taxes and government laws. The use of a trust is critical to the enduring wealth of a family.

Set policies.

Policies include the rules of communication and how family members will participate in the creation and distribution of wealth.

Establish practices.

Set practices like financial planning, wealth education and family meetings that must be passed down from generation to generation.

To learn more about how to successfully transfer your family wealth, attend Zela’s Wealth Forum at The Civic Center. Click here to register.


Phyllis Okeke is the Managing Director of Zela Ventures Int’l Limited, and also the convener of the Wealth Forum.

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