01What do relationships have to do with wealth planning?

Wealth and relationships cannot be separated. Both sides must be considered in balance.

If a wealth plan focuses only on the technical, it will be weak. If it focuses only on the relationships, it will lack the formal governance needed to be useful.

That is at the heart of our approach to the Conduct Formula – and how we help wealth owners create a wealth plan to match their purpose.

Because it is a relief to know everything is in order, according to your own principles.

Do you – and your advisors – see the wood for the trees? Is your plan designed to achieve technical goals, or strategic ones? To achieve your goals, or your advisor’s?

We ask these questions because it is essential to have a strategic view of your wealth plan. And, just as importantly, for your advisors to be aware – and to help achieve – this longer-term vision.

First: make sure you create a plan that matches your purpose.

Second: make sure you understand your plan, and its implications.

Third: make sure your plan is supported by a team who can implement it.

To achieve those goals, it’s better for you to be in the driver’s seat – throughout the entire journey.

How much freedom does your wealth provide? How do you balance a desire for responsible stewardship of your wealth, with a desire to give the next generation freedom to make their own choices?

Wealth can be a heavy load for any heir to bear, without the proper preparations, arrangements, and support in place.

A trust is a legal arrangement between four key parties:

  • The trustee
  • The settlor
  • The beneficiaries and
  • The protector

The trustee holds and manages assets contributed by the settlor for the benefit of the beneficiaries. The protector oversees the operation and ensures checks and balances.

While often misunderstood, trusts can not only safeguard your and your family’s future prosperity but also support your societal goals. Trusts fund educational initiatives and contribute to charitable causes, effectively preserving what matters most to you.

Trusts also enable the creation of governance structures involving family members and trusted professionals. Together, these individuals can oversee strategic decision-making and the stewardship of the assets, ensuring that wealth is handled according to the settlor’s wishes.

Trusts and other fiduciary instruments aren’t just about protecting assets. They’re also about protecting how those assets are used, over the generations.

How can they improve your relationships, and contribute positively to the lives of those you care about?

Planning how assets will be used for years to come requires a clear purpose, and often legal separation from the rest of the family’s wealth. Hence the value of a more tailored approach, with more bespoke fiduciary instruments like trusts or foundations.

Do you have a Plan B? Will your legacy be left in safe hands? Are you (constantly) aware of and prepared for your “what ifs…”?

And what about everyone else connected to your wealth – your family, business partners, advisors, and so on? How prepared are they?

Does your wealth plan aid your intentions – or frustrate them?

The first step is to go beyond thinking about structuring and protecting your wealth. To go beyond thinking about earning wealth today, and doing good tomorrow.

Instead, you might ask: what can make my life more meaningful today? How can my wealth fulfil this goal?

For some, this may be to create a charity. For others, to live more sustainably. Whatever your intentions, your wealth plan should fulfil, not frustrate, them.

The short answer: yes.

If you use your wealth to create a plan that implements your own values and goals, your vision for yourself and your loved ones, then you are on the way to finding that ideal model.

Remember: no one size fits all. No advisor will be perfect for everyone.

But there are guiding principles to follow, beyond the technical capabilities or reputation of a person.