Inadequate Estate/Financial Planning
Blamed for Family Business Failures
Editor’s Note:The following data, reprinted by permission from Richard Dino, Ph.D., Director of the University of Connecticut Family Business Program, and based on a study by Karen File, an Associate Professor at the University and Russ Prince of Prince & Associates, clearly points up the need for proper estate planning and periodic reviews to protect the firm and family.
Inadequate estate planning and failure to properly prepare and provide for the transition to the next generation, coupled with lack of funds to pay the estate taxes, were among the three leading causes for the failure of nearly 800 family-owned businesses in recent years.Conflicts with family members not actively involved in the business, was a close fourth. More…
The Family Office:Not Just for the Super-Rich Anymore
by Christine Rew Barden
Attorney, DeWitt, Ross & Stevens
Family Offices conjure up images of grand office suites in which workers go about managing the massive wealth of a high-profile family.While there may be such offices in operation, they are the exception rather than the rule.Family offices are becoming an attractive and practical option to an ever-increasing segment of the U.S. population.
At last count, there were approximately 5,000 family offices operating in the United States (Marianne Mihailidis, Project Consultant, Family Office Exchange, Inc., Oak Park, Illinois).With millionaire households growing at an annual rate of 12% (“Emerging Technologies Change Financial Services Industry,” FOX Exchange Newsletter, Jane Adler, Special Fall Forum Edition, 12/2000), the number of family offices only promises to climb.The high net worth family faces unique challenges ranging from how to obtain the best investment returns on family assets to how to instill in the next generation the family values which made their family great. More…