Family Wealth Management | Everything You Need to Know

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Family Wealth Management | Everything You Need to Know

Have you heard of family wealth management before? If you have, the question then is; do you have one in place? Let’s have a look at what family wealth management is and all its benefits.

Family wealth management is a concept that’s relatively new. The primary motive of this concept is to make sure that your family is looked after once you’ve gone. A financial advisor will help you along the way, to make sure you are setting aside enough. The process includes wealth accumulation, protection of wealth, creating income from the wealth and distribution of the wealth post-death.

The process of family wealth management can be split into three parts which must work hand in hand for it to be successful. The first part is a financial plan. An investment portfolio is the second part. A trusted financial planner or advisor is the last part of the process. All the three parts of the process must work together to ensure success. If any of the three parts aren’t available, the process flops. Let’s take a brief look into each of the above 3 parts of the process:

  1.  A financial plan. This is at the very beginning of the process. It helps you in determining the goals you intend to achieve with the finances in your possession. It also gives you a clear action plan on how to go about it. You may need a financial planner to help you build one. The plan is the one that drives all the decisions of investment objectives.
  2.  A portfolio in reaching your goals, you must have an investment portfolio that’s well-designed. This portfolio serves as the mechanism that funds vital investment and financial decisions. You should ensure that the financial plan informs the investment portfolio.
  3. Financial advisor. This is a professional that should be there for you all your life. They serve as the financial planner, to help you come up with a portfolio for funding the goals. However, they do more than that. They continuously advise and monitor your plan for a great number of years. They can adjust the plans if need be.


The benefits of family wealth management.

There are several benefits that the wealth management process has to families. Here are some of the top benefits:

  1.  Ensures the welfare of the family once you’re gone, in the unfortunate event that you pass on, your family won’t have to go through anguish in order to make ends meet, especially for the children. All their financial needs will have been taken care of and their future will have already been catered for.
  2.  Wealth Management, on the other hand, is more difficult to contest and often, everybody’s interest will be considered.
  3.  Solves problems with taxes when you have a plan and portfolio that the wealth management is often set to meet the tax requirements in time as the business can keep running. This ensures that there won’t be any issues with the taxes at any point.



There’s no better way to ensure that your family’s taken care of, especially in the case of death. This calls for every person to consider this concept as the above-discussed benefits are just but a fraction of what you get from it.