It is important to keep in mind that in family dynasties, ultra-wealthy families share more than financial interests across generations; they also share values and goals. According to Cliff Oberlin, Chairman and CEO of Oberlin Wealth Partners and co-author of Family Fortunes: How Family Enterprises Thrive Across Generations,“These shared moral standards and objectives give family members a solid ongoing commitment to the family. For a family dynasty to exist, each generation must transfer the family fortune in one form or another, along with their core belief system, to subsequent generations. Having a well-formulated succession plan is essential to achieving both of these aims.”
A major problem with creating a family dynasty is the ability to maintain or increase the family’s buying power across generations. As most families grow in size and establish multiple branches, the amount of wealth required can possibly escalate exponentially. According to Vince Annable, CEO and Founder of VFO Advisory Group and author of The Household Endowment Model: Wealth Planning for Affluent Families, “We find wealthy families, who are thinking generationally, first have to understand what it’s going to take to ensure the level of wealth they want for their heirs and their heirs of heirs. Producing some—admittedly rudimentary—projections is generally very helpful.
