engaging the next generation of family wealth advisor - howard m. weiss
DESCRIPTION
Howard M. Weiss of U.S. Trust discusses why family offices need to engage and train the next generation of the family.TRANSCRIPT
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Engaging the Next
Generation of Family
Wealth Inheritors
“Family members should be trained to see themselves
as stewards of the family wealth, as opposed to just
inheritors,” according to Howard M. Weiss, SVP, Family
Wealth Advisor, U.S. Trust. They need to be engaged
and involved in the family’s financial and business
affairs early on, to make the wealth last for
generations, he adds.
Weiss is a speaker at the IFG Wealth Management
Forum 2013, in Miami, Florida, 21-22 October.
What advice for successful succession planning
could you give? What is the first step that families
need to take?
First, they need to begin early. They should not just
appoint someone in charge of the family’s financial
affairs and then get involved only upon the death of
a parent. The head of the family needs to put the
successors in place while he or she is alive, although
it is sometimes difficult to loosen the reins.
It is sometimes helpful to provide successors with
experiences that go beyond the family’s businesses.
Their fresh out of college children could work at
another company first to gain some experience.
Third, family members need to be mentored into
various roles, whether it is to handle investments,
businesses or a foundation. Get them involved so
that everything does not turn over to one person
at the end, at the exclusion of meaningful roles for
other siblings.
What issues do they encounter in succession
planning?
Some successors have not been prepared for their
new role. If succession planning is neglected for too
long, the children may have developed careers of
their own and not be interested in the family business
or in overseeing the family’s financial affairs. Some
inheritors are happy to hand over the financial affairs
to somebody else, which is not always the best idea.
How could the family wealth be positioned
for growth?
Even when inheritors do not wish to run the family
business, they should be trained into being good
overseers and board members. There must always be
some level of family involvement.
Family members should be trained to viewing
themselves as stewards of the family wealth, as
opposed to just inheritors. There is a big difference.
Stewards focus on achieving a good balance between
investing and spending. Inheritors sometimes focus
more on spending than investing.
Accomplishments should also be encouraged, as
success is not just about money. The family can employ
their wealth to achieve great things in the fields of
education or science. I have observed that if there is
good succession planning, family members also do
better in their own lives, which also usually translates
into their investments doing reasonably well.
Interview with: Howard M.
Weiss, SVP, Family Wealth
Advisor, U.S. Trust
Howard M. Weiss of U.S. Trust
discusses why family offices
need to engage and train the
next generation of the family.
Weiss is a speaker at the
IFG Wealth Management
Forum 2013.
FOR IMMEDIATE RELEASE
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October 21-22, 2013, The Ritz-Carlton Coconut Grove, Miami, FL
www.ifgwealthmanagement.com
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IFG WEALTH MANAGEMENT FORUM THE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICES
October 21-22, 2013, The Ritz-Carlton Coconut Grove, Miami, FL
www.ifgwealthmanagement.com
What tools or resources do wealthy families underutilize?
Families frequently do not leverage their existing network of financial service providers and business advisors when it comes to training or
educating the next generation. They may hire consultants to fix a problem or educate their children when they already have some of the
financial empowerment or education programs available to them from their existing advisors.
There is nothing wrong with bringing in third party consultants. However, in the process, they should also tap the resources of their advisors.
Any final comments?
Continually try to engage the next generation in some fashion. When the older generation passes on, the younger generation may wonder
whether they need to continue having a family office. If they have never been engaged, they will not know what the value of the family office is.
Make sure to stay relevant and connect with the next generation, regardless of how involved they are. They will be your bosses one day.
Salpi Balian
Press Manager – IFG
For more information: [email protected]
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