Money and Family

Money and Family

Managing Significant Wealth

Our team at Cypress Wealth Advisors has been helping individuals and families manage their wealth for more than 30 years. We advise our clients on many issues but we are most often asked to help answer questions about managing significant wealth.

We’ve gathered our collective experience to focus on some of the key questions and answers to these challenging issues in a new white paper: Money and Family: The Hard Questions In Life. Please click here to download the complete report.  

Here are some highlights from our observations:

What makes for successful management of significant wealth?

Good communication is probably the single most common attribute in successful family wealth management. Unfortunately, many wealth holders are afraid to discuss wealth with their children, and unhappiness almost always follows. Wealth holders shouldn’t underestimate the value of clearly conveying their wishes to future generations.

What’s the most common mistake you see in family wealth management?

Being unprepared to manage money happens all too often. With planning, families can have a more positive relationship with their wealth. Surprising though it may seem, many children from wealthy families never grasp the importance of effective money management.

What should you tell your children about your wealth?

One of the biggest mistakes we see is that parents try to conceal wealth from their children. Children need a framework to make sense of their family’s wealth. It’s important to share information with children and not remain silent.

In terms of wealth transfer and legacy planning, what’s paramount?

Clear communication is a best practice when it comes to wealth transfer and planning a legacy. You should communicate as much as you can during your lifetime to ensure family members can enjoy the wealth passed on to them.

Why does wealth negatively affect relationships?

When people come into money, they often become suspicious. They question the motives of all but their long-standing friends, and with good reason. Wealth and marriage are even more difficult. When family wealth is also involved, marriage can be considerably more complicated for the couple.

When is it okay to give one child a greater share of wealth than another?

Generally the only time it is okay to share wealth unequally is when a child has special needs
for additional health care or other assistance. Often parents want to assist a child who has fewer resources than another child, but it’s critical to inform your other child of what you’re planning. If children are asked, and not told, they are much more likely to support a parent’s financial decision.

Download Money and Family:  The Hard Questions To Ask