Generational wealth transfer occurs through various means, and these could be via inheritance, gifts, trusts, family limited partnerships, charitable giving, and estate planning strategies. They all have a goal in mind – to preserve and enhance the wealth accumulated by one generation and ensure its continued growth and prosperity for future generations.
For ages, civilizations, and across societies, people have built conglomerates, and huge empires and amassed great wealth through business ventures, trade, manufacturing, production, construction, industrial goods, services, and investments, all these buoyed by an entrepreneurial spirit and prudent management by founders of the businesses. However, in most cases, the wealth does not survive from the second to third generation, and on and on. As such, the legacy of hard work put in by the patriarch or matriarch in the first generation is lost due to varied factors, which include but are not limited to a lack of financial education, inadequate estate planning, poor communication and family dynamics, taxation and legal regulations, business succession challenges, economic and market volatility, unequal distribution of wealth, lifestyle, and spending habits.
Addressing these factors requires proactive wealth management strategies, effective communication, education, and careful planning to overcome potential barriers and ensure a successful transfer of wealth across generations. The place of generational wealth transfer for sustainable family living and societal growth cannot be overemphasized. Many bodies, thought leaders, visionaries, and futurists have spoken about how society benefits when wealth is transferred from one generation to the other.
According to the Kings Court Trust and Centre for Economic and Business Research, “it is estimated that around #355b will be transferred to the next generation of families in the UK for the next 25 years”. This is made possible through carefully planned wealth transfer schemes – safeguards built over the years to manage and preserve the wealth helped in navigating transfer from one generation to another. This is huge when set against the impact the funds can make on the UK economy when put to productive use.
It is important to seek the advice of professionals such as Norrenberger in planning wealth transfers. Generational wealth transfer is not just about passing down money; it’s about passing down knowledge, values, and a legacy of financial empowerment. Norrenberger can help midwife this process.
Wealth transfer can provide a solid foundation for education, career development, entrepreneurship, the overall financial security of families, and for societal growth. Generational wealth transfer contributes to breaking social and economic inequality, as families with significant wealth can maintain and pass on their advantages to successive generations. Wealth management tools play crucial roles in enabling generational wealth transfer by providing individuals and families with effective strategies to preserve, grow, and transfer their wealth across multiple generations.
The saying goes that the true measure of wealth is not how much is accumulated, but how effectively it is preserved and transferred to create opportunities for future generations, and society benefits. Relatedly, the purpose of generational wealth transfer is not to create a life of entitlement but to empower future generations to live purposeful lives and make a positive difference in the world.
iWealth by Norrenberger is all about this and even more. Our product will serve as a vehicle to empower future generations, create positive change, and build a legacy of financial well-being for families through generations. A huge benefit that will crystallize from subscribing to the iWealth by Norrenberber is a lifetime opportunity to have wealth transferred from generation to generation without a loss or losing track of the investment. Thus, a legacy is created that extends beyond the lifetime of an individual, leaving a lasting impact on the lives of a family and community.
The product will create an opportunity for generational wealth transfer whereby assets, wealth, and financial resources pass through a chain from one generation to the next within a family or lineage or people with ancestral links. These resources could then be put to productive use and the wealth is sustainable over a long period. This involves the transfer of various forms of wealth, such as money, property, investments, businesses, and other assets, from older family members to their children, grandchildren, and subsequent descendants.
iWealth is built on the promise to facilitate a smooth and effective generational wealth transfer. This will revolutionize generational wealth transfer by providing individuals and families with comprehensive strategies and resources to preserve and transfer wealth efficiently. By utilizing iWealth, families can establish a strong foundation for their descendants, ensuring the long-term financial well-being of future generations.
From the 19th to the 20th centuries, there have been success stories of families who laid solid foundations for generational wealth transfers that have endured till the present day. The not-for-profit organizations (foundations) that were established out of these funds are driving societal change across the world, especially in developing economies and poor nations. The Rockefeller family, the Mars family, the Walton family, and much closer home, the Dangote family are telling examples of how a well-planned wealth transfer programme can lift families and communities through generations.
The Rockefeller family is often cited as one of the most prominent examples of generational wealth transfers. John D. Rockefeller, the founder of the Standard Oil Company, accumulated a vast fortune during the late 19th and early 20th centuries. Recognizing the importance of preserving wealth for future generations, Rockefeller established structures such as family trusts and foundations to ensure the longevity of the family's wealth.
One such example is the Rockefeller Brothers Fund, created in 1940 by John D. Rockefeller Jr. and his four sons. The fund was designed to support charitable activities and promote social change. Over the years, the fund has provided grants and resources to various organizations, addressing issues such as environmental sustainability, economic justice, and global security. The Rockefeller family's commitment to philanthropy has allowed them to leave a lasting impact on society while preserving and growing their wealth across generations.
The Mars family, known for their confectionery empire Mars, Inc., represents another notable case of generational wealth transfers. Frank C. Mars founded the company in 1911, and it has since become one of the world's largest privately held companies, known for brands like M&M's, Snickers, and Milky Way.
The Mars family has employed various strategies to ensure the successful transfer of wealth across generations. One key approach has been the establishment of a family-owned enterprise. The company remains privately held, allowing the family to maintain control and retain ownership of the business. By actively managing the company's operations and investments, the Mars family has been able to generate substantial wealth over time.
Moreover, the Mars family has been actively involved in philanthropy. In 1989, they created the Mars Foundation, which supports education, health, and community initiatives. This philanthropic focus aligns with their commitment to giving back and ensuring the family's legacy extends beyond their business achievements.
The Walton family, founders of Walmart, exemplify generational wealth transfers in the retail industry. Sam Walton started Walmart in 1962, and the company grew to become the world's largest retailer, with a significant impact on the global retail landscape.
Sam Walton's approach to generational wealth transfer included establishing a family-owned business and utilizing trust structures. By passing on ownership shares to family members and establishing the Walton Family Holdings Trust, the family has maintained control over Walmart and its associated wealth.
The Walton family has also engaged in philanthropy. In 1987, they created the Walton Family Foundation, which focuses on education, environmental conservation, and improving the quality of life in the communities they serve. Through strategic grant-making and investments, the family's philanthropic efforts have had a significant social impact.
The Dangote family in Nigeria provides a notable case study of wealth transfer in Africa. Aliko Dangote, the patriarch of the family, is widely regarded as Africa's richest person and the founder of the Dangote Group, a conglomerate with interests in various sectors including cement, sugar, flour, energy, petrochemicals, refinery, oil and gas.
Aliko Dangote has taken significant steps to ensure the transfer of wealth to future generations. One approach he has employed is the establishment of a family-owned business empire. The Dangote Group remains privately held, allowing the family to retain control and ownership of the company. This enables the family to have a direct say in the management and growth of their businesses.
Furthermore, Aliko Dangote has involved his children in the operations and leadership of the Dangote Group. His daughters, Halimah and Mariya Dangote, hold executive positions within the Group, indicating a planned succession within the family. By nurturing the next generation's involvement in the family business, Aliko Dangote is ensuring a smooth transition of wealth and leadership to his children.
Additionally, the Dangote family has been actively involved in philanthropy. Aliko Dangote established the Aliko Dangote Foundation, which focuses on initiatives in health, education, and economic empowerment. Through strategic philanthropic investments, the family aims to address social challenges and contribute to the development of Nigeria and Africa as a whole.
The case of the Dangote family exemplifies how generational wealth transfer in Africa can be facilitated through a combination of family-owned enterprises, active involvement of the next generation, and a commitment to philanthropy. By nurturing business acumen and social responsibility within the family, the Dangote family aims to secure their wealth for future generations while making a positive impact on society.
Overall, these case studies highlight the various strategies employed by families to transfer wealth across generations. They demonstrate the importance of thoughtful planning, including the use of trusts, foundations, and family-owned enterprises, as well as a commitment to philanthropy to ensure a legacy.
iWealth by Norrenberger is a catalyst to creating future family success stories of wealth transfers that can be studied as used cases similar to the Waltons, Mars, Dangotes, and Rockefellers of this world. iWealth advisory services tailored towards financial planning, investment management, risk assessment, and retirement planning, among others, are a veritable platform to deliver on this promise.
