With careful planning, family wealth created by one generation can be protected and grown for future generations to thrive.

Where is your wealth held?

An important aspect of wealth planning is identifying where the wealth is held – while some family’s wealth will be solely invested and utilised in the business, others may have assets in the business that could be redeployed elsewhere, such as land or property, or surplus profits.

Money tied up within a business usually carries a higher risk when compared to other types of assets, due to its exposure to the volatile challenges and issues associated with a particular sector. In contrast, assets such as property and investments can be managed in a way to mitigate risks and preserve value.

A family culture assessment

The business owner and wealth generator has many big decisions to consider, including whether to sell the business and pass on money to the family, or pass on the business as it is. Questions to ask could also include;

  • Is there a natural successor to the business?
  • Could someone take on the business with the appropriate training?
  • Are the next generation capable of managing the business successfully?

These difficult questions will inevitably need to be considered and the answers communicated to the family once a decision has been reached. Having an objective party involved during the preparation of a succession plan can prove invaluable.

We can help

Magma can assist you with creating a succession plan that will function effectively for you, your family and your business. Get in touch with our team on 01788 539000 or 0116 261 0061 to find out more.


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