Legacy Planning is all about preserving and passing wealth to future generations. It is a process designed to articulate, create and implement a family wealth plan that is consistent with your values and wishes. This process incorporates the strategic transfer of wealth and prepares your beneficiaries to take their turn in benefitting from the wealth you have created.
Watch our brief video to discover our approach to maximising our clients finances and protecting their wealth for future generations.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
Do you want to leave an inheritance or a legacy?
Two of the greatest family fortunes in history were created in the 19th Century.
The lessons learned are clear to see. One family thrives and prospers to this day. The other collapsed.
The Vanderbilt Family…
Cornelius Vanderbilt created one of the greatest fortunes in world history, valued at his death at $100million. He left 95% of his estate to one son and divided the rest among his eight daughters and his wife, leaving a tiny portion to charity. Four of his children contested the will and one ultimately killed himself over the escalating feud about the financial inheritance.
Economist John Kenneth Galbraith said that the Vanderbilts showed “both the talent for acquiring money and the dispersing of it in unmatched volume,” adding that “they dispensed their wealth for frequent and unparalleled self-gratification and very often did it with downright stupidity.”
Confirmation of that view came only forty-eight hours after Cornelius’ death when one of his direct descendants died penniless and within seventy years of his passing, the last of the ten great Vanderbilt Fifth Avenue mansions in New York City was torn down.
So great was the destruction of the Vanderbilt family and its wealth that for decades and through the mid 1900’s the press referred to it as “The Fall of the House of Vanderbilt.’ William K Vanderbilt, grandson of Cornelius, said of his inheritance, “It has left me with nothing to hope for, with nothing definite to seek or strive for. Inherited wealth is a real handicap to happiness. It is as certain death to ambition as cocaine is to morality.”
Cornelius employed a legion of attorneys and accountants. In fact, his planning was based entirely upon financial planning and estate planning. He did not consciously prepare his children to receive their inheritances, create a pattern of communication amongst the family, or organise them for on-going success. Consequently, when the Vanderbilt family held a reunion in 1973 there were no millionaires left among them.
The Rothschild Family…
The story of the rise of Europe’s Rothschild family in the 19th and 20th Centuries is far more than a tale of banking or politics. It is also the story of how one family has intentionally prepared and organised its children to be strong, independent and successful on their own, apart from the family and its vast fortune.
The family first rose to prominence in the late 18th century under Mayer Amschel Rothschild, and, by the time Sir Nathan Rothschild came to lead the family’s enterprises at the turn of the 20th century the name Rothschild was synonymous with banking and finance. So great was their power that on several occasions the House of Rothschild, as it came to be known, actually bailed Germany and England out of economic catastrophes that could have led to their collapse.
The Rothschild family philosophy on passing inheritances from one generation to the next is very different from Vanderbilt’s. They actively mentor the children. For example, they establish ‘family banks’ to lend money to those children who want to start businesses or pursue other careers and they monitor and advise the ventures in which the children participate. At the annual family gatherings (which have been held for over 200 years), the values which have sustained the family for generations are affirmed even as their vision for the future is sharpened and clarified. As part of that vision, the family supports a programme of philanthropy in the Arts, Medicine, Science and Education.
The Rothschilds not only utilised Financial Planning and Estate Planning, they incorporated Legacy Planning, which prepares the heirs to receive their inheritance. Building on that very stable platform has been the key to keeping individual family members and the family as a whole, unified, strong and prosperous for generations, no matter what is happening in the world around them.
When you have got it, it requires 10 times more wit to keep it.” (Nathan Rothschild)
Source: The Heritage Institute, LLC • 5 Centerpointe Drive, Suite 400 • Lake Oswego, OR 97035
We have identified a five-stage process of legacy planning which will deliver a bespoke strategy for you and your family.
1. Identification of personal assets and those in your broader estate such as assets owned jointly or owned by trusts or companies.
2. Identification of potential risks including, for example, your early death or the possible divorce or bankruptcy of a beneficiary.
3. Build a team as each step is a multi-disciplinary exercise that usually will require the co-ordinated involvement of your solicitor, wealth manager and accountant. They must be willing to work collaboratively to ensure that your needs are met.
4. Design and implementation of a plan that incorporates all of your assets and takes into account flexibility to accommodate future changes, investment risk mitigation, tax efficiency and succession issues.
5. Review plan on a regular basis to ensure that your needs and requirements are still being achieved by the plan in place.
The legacy planning team at McGarvey Jones will work with you to help ensure that your assets and family are protected. We can implement strategies to ensure that future generations continue to benefit from your legacy. We work with other specialists so if we are not the best people to help you we will introduce the people we trust who can.
LEARN MORE ABOUT OUR EXPERT FINANCIAL PLANNING PROCESS
At McGarvey Jones Financial Planning we recognise that our clients are central to everything we do. We are committed to developing long-term relationships with our clients to help them build, preserve and protect their wealth.