Generational/Succession Governance
We understand the essential complexity of multi-generational wealth and provide the essential strategy, collaboration and administration to manage it well.
One of the most important aspects is to design a governance structure to ensure the families’ generational wealth goals are achieved.
In this hypothetical example, The Smith family, with a large family business and significant outside wealth amassed over three generations, entrusted their legacy to “Vogel Law Office (VLO).”
In collaboration with the patriarch, Paul Vogel guided the family through the process of developing a self-perpetuating governance structure and distribution strategy focused on incenting each current generation to participate in the preservation of the family’s wealth as stewards for generations yet to come.
The plan was multifaceted addressing areas such as:
- The family’s approach to interaction with the professional management of the family business.
- Sufficient access by the current generation to a portion of the family’s wealth to allow them a stewardship view toward the larger portion of the family wealth.
- A governance structure with sufficient family control balanced with a professional independence requirement to provide guidance and advice as needed.
- Appropriate incentives to assure significant engagement by each generation in the management of the “family enterprise” and Family brand.”
- A clear acknowledgement of each family member’s charitable obligations in their communities coupled with an overarching “family enterprise” level approach to charitable endeavors.
To ensure transparency, education, and communication as part of the governance structure, Paul facilitated quarterly board meetings where family members discussed investment proposals, financial updates, planning opportunities, and philanthropic initiatives. Included in these meetings are appropriate educational presentations by outside professionals regarding the agenda items so that all family members had the opportunity to make a well-informed decision.
Most importantly, Paul kept the family united.
Open communication, shared goals, and financial literacy built trust and understanding across generations. The Smith family entered the next chapter, their wealth preserved not just in numbers, but in a shared legacy of responsible stewardship and familial harmony.
This is just a hypothetical example, of course. The specific strategies and challenges a family office would face would depend on the unique circumstances of each family. However, it’s an illustration of how a well-managed family office can help achieve wealth preservation for generations to come.
We serve as a single point of contact for all areas of a client’s financial affairs, coordinating with a team of attorneys, accountants, bankers, investment advisors and insurance agents while delivering customized advice and individualized service to surpass our clients’ expectations.