A fateful launch

January 28, 1986. The world watches in shock as the Space Shuttle Challenger disintegrates just 73 seconds after liftoff.

The cause? A rubber O-ring — a small but critical component — failed in the unusually low winter temperatures. Engineers had flagged the risk prior to launch, but their concerns were overshadowed by conflicting priorities, including schedule pressures.

The O-ring had shown signs of erosion in previous missions, yet the absence of catastrophic failure led to complacency. With no fail-safe measures in place, the mission ended in disaster. In its wake, plenty of questions about the decisions that preceded that fateful day.

The Challenger tragedy serves as a powerful reminder of how overlooked vulnerabilities and cost-driven compromises can lead to catastrophic outcomes. It underscores how systemic failures in oversight and prioritisation can magnify minor weaknesses into significant consequences.

 

Wealth planning: a Challenger moment

Of course, space exploration and wealth planning may seem worlds apart. But both hinge on critical decisions where minor oversights can have catastrophic consequences.

What if similar missteps infiltrated your wealth and legacy plans? What if the very structures designed to safeguard your family’s future — trusts, investments, and governance systems — were built on flawed assumptions, lacked contingency plans, or failed under real-world pressures?

Wealth planning missteps often result from incremental compromises that erode stability over time. These vulnerabilities may remain hidden during calm periods but become exposed during critical moments — business transitions, family disputes, market downturns, or succession crises. When these events occur, the strength — or weakness — of your advisors and structures becomes glaringly apparent, often at great cost.

 

Choosing the right advisors: hidden risks

Families place immense trust in specialists — lawyers, financial advisors, and trustees — to safeguard wealth and relationships across generations. This responsibility requires advisors who excel not only in routine tasks but also in anticipating and preparing for critical moments that test a family’s legacy.

So what happens when the wrong advisors are chosen? What happens when cost savings or surface-level credentials take precedence over expertise, foresight, and alignment with long-term goals?

Pricing often dominates decision-making because it feels tangible and objective. Yet this narrow focus on cost can obscure deeper, more critical considerations, such as cultural fit, trustworthiness, and the robustness of the advisor’s business model.

When pricing takes center stage, families face two significant risks:

• Overinvestment: Paying for sophisticated services that exceed the family’s actual needs.
• Underinvestment: Choosing low-cost providers who lack the capacity to manage complex or high-value assets, creating critical gaps in governance and exposing the family to risk.

While economising on fees might seem prudent, it often undermines the foundation of service. Low fees frequently signal sacrifices elsewhere — for example in qualified personnel, robust IT systems, or the ability to anticipate future risks. As the adage goes, you get what you pay for — but only after the fact.

Families prioritising low fees often pay a higher price in the long term. Advisors operating under cost-driven models may lack the infrastructure, expertise, or foresight to manage crises effectively.

Examples include:

• Protecting assets during transitions, disputes, or litigation
• Navigating geopolitical and cross-border challenges
• Providing transparency and robust oversight
• Anticipating and managing evolving family dynamics
• Addressing liquidity needs and contingency planning
• Ensuring compliance while safeguarding privacy and reputation

Low-cost advisors are frequently overburdened with high caseloads and limited resources, resulting in high staff turnover and a loss of institutional knowledge about clients and their history. They may rely on outdated practices and reactive decision-making, leaving families exposed to significant risks.

In some cases, governance structures may be designed to appear disconnected from settlors and beneficiaries. At the same time, they allow de facto control through mechanisms such as shadow directorships, powers of attorney, or trustees who lack true independence.

This often arises when advisors, constrained by limited expertise or resources, inadvertently or intentionally create structures that do not meet robust fiduciary standards. These advisors, lacking the expertise to act as real trustees, may set up or operate such flawed structures due to inadequate understanding of proper governance. These arrangements often crumble under scrutiny, exposing families to severe legal and reputational damage.

Adding to the challenge, some advisors lure families with underquoted initial costs, only to escalate fees later with unexpected “extras”. This cycle of frustration, mistrust, and poorly tailored advice can leave families trapped and vulnerable.

 

A blueprint for resilient wealth planning

Building resilience in wealth planning requires more than technical expertise. Families benefit most from advisors who take the time to understand their unique needs, priorities, and values. These advisors can help families anticipate risks and craft strategies that adapt to evolving challenges while fostering strong, long-term relationships.

Higher fees do not always mean better service, and lower fees do not guarantee cost efficiency. Assessing the true value of an advisor involves balancing cost considerations with expertise, trustworthiness, and alignment with family values. Equally important is understanding the purpose of the solution or services required.

For example, the skills and qualifications needed to manage a dormant fixed-interest trust designed to benefit a single beneficiary or organisation in the future differ significantly from those required to oversee a trust holding a multi-generational operating business. Tailoring the advisory approach to the complexity and goals of the structure ensures that families receive the right support for their unique circumstances.

Institutional strength is critical. Families should evaluate whether a provider’s infrastructure is resilient to regulatory and jurisdictional risks, ensuring continuity even in rapidly changing environments. Factors like proximity, time zones, language, the quality of local advisors, and cultural understanding also play a significant role in a successful advisory relationship.

However, even the most skilled advisors can falter if their organisations prioritise short-term gains over long-term client needs. A business model focused on stability and foresight — rather than profitability only — provides the foundation for advisors to operate with integrity and commitment.

The Challenger disaster reminds us that outdated practices and overlooked risks can have dire consequences. Is your wealth plan designed to withstand tomorrow’s complexities?

 

The trust cost — and value — of wealth planning

The choice of an advisor should never hinge solely on price or initial impressions. The key lies in understanding your needs, aligning them with the right service model, and recognising that price is just one factor in the equation. After all, the real question isn’t what a service costs — it’s the value it delivers.

Educated choices lead to better outcomes. However, for those outside the industry, it can be challenging to assess the expertise of an advisor or know the right questions to ask. Starting with questions about the provider’s values, goals, client relationship model, and business approach can provide valuable insights into their overall philosophy and suitability. These hints help families gauge whether the advisor’s approach aligns with their long-term needs.

When pricing takes center stage, families risk losing sight of what truly protects their legacy: resilience, foresight, and trusted expertise. The right advisors do more than manage wealth plans — they anticipate challenges, adapt to complexities, and deliver solutions that endure. The true cost of wealth planning is not measured in fees but in the strength and longevity of the legacy it protects.

 

Choosing advisors and understanding pricing decisions: a checklist

1. Expertise and relevance
   • Does the advisor have proven technical competence in key areas like wealth planning, governance, and compliance?
   • Are they up to date with current laws, regulations, and trends that impact your wealth?
   • Can they demonstrate experience with families of similar complexity and scale?
   • Do they have the expertise and foresight to handle emerging challenges?
   • Is their level of experience, professionalism, and business model aligned with your family’s unique needs?
2. Relationship building
   • Does the advisor take the time to understand your family’s values, priorities, and unique circumstances?
   • Do they exhibit empathy, active listening, and genuine care in their interactions?
   • Are they committed to fostering a long-term relationship built on trust and mutual respect?
3. Risk management and adaptability
   • Can the advisor anticipate emerging risks and guide your family through uncertainties?
   • Do they provide proactive, innovative strategies to address evolving challenges?
   • Are your wealth structures built to anticipate worst-case scenarios?
   • How often are your structures and strategies reviewed to align with current realities?
4. Organisational suitability, stability, and alignment
   • Is the advisor supported by an organization that prioritizes long-term client needs over short-term profitability?
   • Does the organization have a stable and experienced team with low turnover?
   • Are logistical factors, such as time zones and proximity, convenient for your needs?
   • Does the advisor have a strong understanding of your cultural context?
   • Does the organization operate in a stable political, legal, and economic environment?
   • Does the company have a robust IT platform and ensure client data is stored securely?
   • What is the reputation of the organization and its team members? In a human-driven business, a strong reputation reflects trust, integrity, and reliability.
5. Pricing and value
   • Are fees clearly explained, transparent, and aligned with the services provided, without hidden costs or unnecessary complexity?
   • Do they offer value through tailored solutions, strategic planning, and insights?
   • Does the advisor challenge your perspectives constructively rather than acting as an “obedient servant”?
   • How do you balance the need for long-term resilience with the appeal of short-term cost savings?
   • When comparing proposals, are you evaluating personnel, organisational business models, and platforms on comparable terms?
6. Final reflection
   • Does the advisor and their organisation inspire confidence in their ability to safeguard your family’s wealth and legacy for generations to come?
   • On what specific basis do you trust their capabilities and values?
   • Are you confident this advisor can navigate complex, unforeseen challenges while maintaining alignment with your values?

By focusing on these factors, you can make more informed decisions that not only align with your immediate needs but also ensure long-term stability and resilience for your family’s legacy.