Commonly in Western society, we believe that the good practice of financial assets only preserve what we have, it is the main objective. While this is certainly a very important goal, of course, you are not alone.
It has been carefully mentioned in previous writings, that wealth is created and often destroyed in three generations. As James Hughes site in his book, "family property", the old Chinese proverb is "jacket in three generations." To explain further, the existence of wealth occurs in three stages within a family.
Along with this physical, the first step is the creation that occurs in the wealth creators first generation. These are often "mom and dad" create wealth, usually through a successful commercial enterprise.
The second stage is the stage of stagnation; step in a stalemate or what can be considered a point of equilibrium in which the maintenance or preservation of the relationship.
And finally, the existence of material, or in this case wealth, moves in a state of entropy or decomposition. If not properly cared for, wealth begins to disappear or transferred outside the family. This usually occurs with the third generation, or at least has a reputation for doing so, as the third generation is far from the concept and requirements to create wealth first, also known as the "syndrome golden cradle" .
The question is how long the family can maintain their wealth and preferably maintained in the first step of creating generations?
The first step is to recognize that there is more than one type of wealth in a sustainable and healthy family. Wealth, the kind that is vital to a strong and sustainable family for several generations, comes in three forms: human wealth, intellectual wealth and financial wealth.
Human wealth is related to the welfare and happiness of a family member; the floor with purpose and strength in their own identity and sense of freedom. Often, one of the challenges of an individual inherits a considerable wealth is they know they do not work for it or create it first. Throughout he has no idea what really create wealth, they know they do not earn and can form a guilt complex.
Another result, which is common to the second generation, is a sense of obligation to preserve, where you have to be a lawyer or financial advisor. However, among the beneficiaries of significant wealth, life can become very boring in some respects. Very often, these heirs may ask why her friends really like - not more than love because of his wealth? This can create insecurity.
The point is that human wealth is an essential form of wealth that must be given a family environment to grow and thrive, and to maintain and build a sense of purpose. Therefore, like any successful organization, the most important family asset is its people and success, growth and happiness of its members. Therefore, the physical and emotional well-being is a priority.
The second form of wealth in the intellectual wealth of the family. intellectual wealth can be described as the construction and maintenance of knowledge, creativity, skills and experience to support and promote the welfare of the whole human family and financial wealth.
Although difficult to quantify, intellectual wealth can be measured by the success of each individual, whether academic, artistic, professional or business related, or interpersonal. This intellectual capital is also necessary for family members to preserve and develop the financial capital. In fact, it is essential for both human and intellectual capital of financial wealth to survive in a family for generations.
Without proper planning and family governance structure, the three types of wealth, wealth human, intellectual and financial will not survive. Therefore, the saying "shirt jacket in three generations" materializes. A good estate planning and inheritance should be carefully designed and structured to preserve the three forms of wealth.
