As families accumulate important assets over time, they usually face many risks due to their complex lifestyles. Additionally, the exposure to risky situations concerning their assets and personal wellbeing are much greater than average in comparison to those families and individuals that haven’t begun accumulating important assets. Specifically speaking about family-owned companies, the risks faced are unique. If we are able to recognise and implement controls that minimise these risks as they show up, it would be possible to reduce their impact, and keep the family united and the business running on the correct path.
Some of the most common risks that threaten family assets include:
The complexity of fiscal legislation in each country requires us to count on solid advisors and professionals that can develop effective tax planning to help minimize the risk of legal issues, and, at the same time, contribute to the growth of our company.
Lack of Estate Planning
Anyone who depends solely on one testament runs the risk of handing the destiny of their wealth to a judge’s order and creating an irreversible family conflict.
Having a carefully drawn out estate succession plan has the potential to perpetuate and improve the family’s wealth for decades and, maybe, generations to come.
Hackers can interfere with our email and social network accounts and send false messages to our banks, stock exchange, and financial advisors authorizing money transfers. Nowadays, social networks can contribute to the development of our businesses but can also expose us to identity thieves on the lookout for digital and tangible assets.
The security risks concerning our personal wellbeing in our homes, businesses, during travels, etc., such as extortion, scams, and kidnapping, continue to be one of the primary threats to our family and the family’s assets.
It’s because of this that it is important to conduct a complete evaluation of our family’s exposure to these types of threats in order to reduce any invasion to our homes, businesses, and ourselves that would directly affect our family and assets.
Ultimately, the best steps to take in risk prevention are effective planning of all aspects, e.g., legal, tax, estate, security, etc., and the implementation of security measures to reduce the impact these risks imply.