VisionQuest Capital advises a number of their clients on how to take advantage of the great migration of wealth from one generation to the next. VisionQuest has developed an integrated estate planning process based on experience, for both clients transferring wealth and for the beneficiaries of the wealth being transferred.
Clients Transferring Wealth
As clients move to the wealth transfer phase, VisionQuest makes sure that their intergenerational wealth planning services are prominently featured to the client. For most of our clients, family wealth planning around their money is an essential service that we provide and the families welcome the engagement of children.
For VisionQuest, we have developed a consistent, step-by-step process that illustrates the best steps to take for a family. Clearly, death is a topic that most individuals and families don’t launch into easily. Furthermore, we’ve realized that we can only effectively broach this topic if the family timing is right and we are perceived by the client as a “Trusted Advisor.”
Assuming those factors are aligned, the best time to discuss wealth transfer is NOT in the midst of a family crisis or while a loved one is dealing with failing health. For best results, the initial communication about wealth transfer should begin many years before it needs to be executed. Effective wealth transfer requires individualized construction, tax planning and family consideration.
VisionQuest’s success in the estate planning process has been all around “positioning.” First off, we position our firm as a Personal CFO Firm. To our clients and in this capacity, we act like a general contractor, leading and coordinating the expertise of others. We have found that it takes time to communicate the delicate issues surrounding wealth transfer, but our clients respect our position and trust the network that our firm has to provide when developing a personalized and customized wealth transfer strategy.
Words of Wisdom
Family issues and dynamics are almost always involved in the estate planning process. Avoiding nettlesome family issues is NOT an option for VisionQuest or any advisor. We have found that engaging the family and the dynamics are a very important aspect of the estate planning process and because of the relationship and positioning we take with our clients, we can solve the true issue with gentle persuasion, steadily applied.
Heirs-to-be – A Different Approach
One thing that has truly helped VisionQuest is that we view the beneficiaries as younger clients or prospects – not as children.
Regardless of their sophistication, we have found that it’s very important to provide them with the opportunity to communicate concerns, fears and frustrations. For when we can get them to “open-up” with VisionQuest, we are establishing the foundation for an independent relationship with our firm.
Assuming we are effective in the trust-building stage with the next generation of wealth, VisionQuest has often taken a broader approach to educating the heirs on the basics of investing and financial planning. In some cases, VisionQuest has actually conducted university-type classes for young adult children of their clients. Aside from expanding financial literacy, demystifying the basics of finance can often bond VisionQuest to the next wealth-controlling generation.
In closing, there is no magic, “one size fits all” answer to the wealth transfer challenges facing families. Each family is different in its own way, but at the bottom of it all, the key to success in working with families is “building trust” on the part of all parties.
