The Entitlement Trap

    View Author October 2020

    An equally perennial issue for wealthy families is how best to address the circumstances created by the “problem child,” and the ripple effects caused in a family arising from criminal behavior, substance abuse or similar issues, improvident personal relationships, or other problematic personal matters.

    A structured approach to wealth preservation and generational wealth transfers can provide some insulation against the financial effects of problem child behavior, by interposing legal protections and formal entity structures between the problematic family member and the family’s assets.

    It can be a difficult and painful process for the family – and, particularly, the family member in question – to accept that a family member is not suited for the role that traditionally had devolved on the person with their position in the family.

    Trusted outside advisers and family office professionals can play a crucial role in effecting the changes in leadership that those situations require writes Dan Berick, Americas Chair of the Global Corporate Practice and Co-Chair of the global Family Office team in FS Private Wealth.