Wealth Creation vs Preservation

We have heard this saying before:

富不过三代

Wealth doesn’t pass through 3rd generation.

But have you heard:

穷不过三代

Poverty doesn’t remain through 3rd generation either!

WHY? Because:

打江山易, 守江山难

It’s easy to build wealth, yet it’s difficult to preserve wealth. The big question in wealth transfer:

How should I structure the wealth that I want to pass on to my current generation and generations to come in efficient, effective and purposeful manner?

First of all, we have to look at your beneficiaries group.

1. What’s their attitude towards wealth?
2. How proficient are they with wealth?
3. How able they are to handle wealth?
   
   

Secondly, your intention. 

1. What are your intention for your beneficiaries?
2. How do you want your beneficiaries to use your wealth gift?
3. What’s the length of period of distribution of your wealth gift?
    

Thirdly, amount of control you intend to keep over your asset.

1. What kind of asset protection you want to have?
2. How long do you intend to preserve your wealth capital?
3. What kind of flexibility do you intend for your beneficiaries to have over your wealth gift?
   
   

Based on the above questions, then you can craft legal structure for your asset distribution to next generations, according to your wishes and intentions.

One thing that is important: 

Always review your wishes and intentions

We change, our thought process change;

Environment changes, situation changes;

Our beneficiaries changes;

So always revisit your structure every 5 years to make sure it is aligned with your current wishes and intentions.

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