Welcome to the new financial year to build wealth in your family business

How can you structure your investments to ensure it is tax effective, assets are protected, and your goals can be achieved? 

Here are the seven steps to kick start your 2024 family wealth goals:

1.    Structure 

Have you considered the best structure for your family wealth creation? Or have you just bought assets without considering the long-term impact? Why not start the year with a structure review to ensure your wealth will continue to grow for your family. Unfortunately divorce, ill-considered wills, tax and family dynamics can sometimes have a negative influence on the vision for your family’s future. By reaching out to a trusted advisor for a structure review, you can ensure your wealth is protected.

2.    Diversify 

When considering wealth-building, often people invest in what they’re comfortable with. This may through property or be ‘blue chip  ’ shares, but you also need to consider diversification. To diversify your investments, you should engage with experts to ensure your investment portfolio is maximised to stand the test of time. With interest rates and uncertain times on the horizon, is your family wealth diversified?

3.    Take your family on the journey

Are you focusing on your family’s wealth, or are you as a family building wealth?   Historically parents were guarded and avoided sharing their financial position with the next generation to try and encourage their children to have a strong work ethic and build their own wealth. However, it’s important to be transparent with the status of the family wealth so that the next generation can understand the wealth they will inherit in the future. 

Including your family now while they are still young enables you to build wealth as a family, but also it educates your children on the overall strategy. Now is the opportune time to put a family governance structure in place with advice from an advisor to ensure your future generations can continue your vision.

4.    Investment strategy 

Has your family created an investment strategy? Do you have a plan on how you will create your family wealth, or do you make decisions on the go?  If you don’t have an investment strategy in place, now is the time to put your plan in writing and if you already have a written investment strategy, now is the time to review the plan.

5.    Estate Plan

A vision for your family’s future is only possible if it is considered early. An area often overlooked is the Estate Plan and ensuring it’s in line with the family vision. In many instances, a will is not sufficient – often strategies include involving superannuation and family trusts, which are structures not covered by a will. It is a good time to consult your accountant and solicitor to ensure your Estate delivers a future for your family.

6.    Binding Death Nomination  

It is time for your family members to review their superannuation and ensure you all have Binding Death Nomination s. Superannuation can often be the largest asset outside the family home in a family wealth creation strategy, but it is not covered by your will. It is essential to have a Binding Death Nomination in place, so the trustees know who you want the proceeds to be paid to.

7.    Enduring Power of Attorney

As part of your Estate Plan, it’s important to include an Enduring Power of Attorney. This ensures – should a family member lose mental capacity – that the family vision for wealth creation can continue. As we currently have an aging population and people are living longer, this document is becoming more important than ever.

We’re here to help

Want help with facilitating discussions or developing the right wealth structure in your Family Office? Reach out to your local representative to ensure your business benefits from robust wealth planning today.