The importance of legacy planning

THE rise of entrepreneurial wealth and the shifting centre of economic power have profound consequences for the way in which wealthy individuals plan for the future and think about a legacy for their wealth. As inherited wealth declines and as fortunes are made at a more rapid rate than ever before, the challenges facing entrepreneurs and family businesses around planning for the future become more pressing and acute, according to Barclays' Wealth Insights report - Origins & Legacy.

Wealth planning encompasses a variety of areas, including financial planning, the structuring of businesses, insurance strategies and international investment structures. But, for many wealthy families, a key consideration is how and when they should share their wealth - either with friends or family, or through charitable donations and philanthropy. It is important to think about succession planning at the right point so that families and individuals can plan for what happens to their money in the future, even if the unexpected occurs.

Allocating the time to think through the purpose of wealth creation can be a real challenge, particularly for entrepreneurs, business owners or those who are in the midst of building a career. A good wealth plan should describe an individual's values and mission for that wealth, and serves as an anchor that enables the individual to move on and consider how to spend, invest and give that money in a grounded and structured way, according to the report.