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#26 2014-01-18 13:00:59

Fjpod
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From: USA
Registered: 2014-01-11
Posts: 35
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Re: Intergenerational wealth, how is it done?

Teaching your children self-reliance is an elusive thing.  Upbringing is crucial.  My parents had very little education yet they made enough of a fortune to pass it on to their children.  Some of my siblings have made more, some less...all with advanced degrees.  There is no magic formula.  And there is always one bad apple in the bunch...who presumably got the same upbringing and education.

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#27 2014-01-18 19:56:43

hihosilver
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From: Australia
Registered: 2010-09-23
Posts: 649
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Re: Intergenerational wealth, how is it done?

here's a question regarding this topic which one of you smart chaps might be able to expand on....My brother in law (a complete bum-head) has just separated from his wife & kids and they aim to be divorced promptly.  He has been a bum head of a very long time now and finally my sister in law has seen the light.  Anyhow, she tells us that she knows she'll have to split up the assets they have ie: house, investments, cash in accordance to the settlement however her dad has a trust set up which spreads out across all his 4 of his kids (my wife being one of them BTW) What is this bum head entitled to if he chases down that pathway to get hold of her dads trust fund?  It's actually a trust fund and not really her dads trust fund more like a family trust fund.   

Any ideas are welcomed.  She doesn't want to see a lawyer due to the fees involved but most likely will.  It's good to have some in-put before she meets up with him due to his fees which will get out of control.  roll

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#28 2014-01-18 20:35:09

Phiber
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From: Australia
Registered: 2012-11-21
Posts: 1,651
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Re: Intergenerational wealth, how is it done?

Generally speaking when it comes to family law, trusts do not provide asset protection unfortunately.


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#29 2014-01-18 20:36:13

Phiber
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From: Australia
Registered: 2012-11-21
Posts: 1,651
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Re: Intergenerational wealth, how is it done?

It would obviously depend on her relation to the trust.


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#30 2014-01-18 21:12:34

Maxwell
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From: WA
Registered: 2013-01-21
Posts: 205
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Re: Intergenerational wealth, how is it done?

'Doesn't want to see a lawyer' ..... then tell her to bend over and grab her ankles.

She MUST have a competant lawyer on her side, there is no other alternative unfortunately. As much as i would like the system to be fair and reasonable, it's not! She needs good advice, fast.

My Divorce Lawyer was one of the most 'expensive' in the town I live in, he saved many multiples of that fee in the long run. I paid my ex, and still have more to pay at some point, but when divorcees gather to tell war stories, mine is one of the better ones.

I can't stress how inportant a 'good' lawyer will be for your sister in the coming months, yes, agreed, they are parasite scum, but being shafted by someone elses 'good' lawyer is a whole lot worse!

ok, [end] well meaning rant

Slight upside. Kids in the equation change a lot of the paramaters, but general rule, if she can prove the asset value at the start of their marriage or relationship, usually only the asset appreciation after that point in time is considered a joint asset. Not always the case, but a good start point to get the bargaining rolling.

Without a family court ruling on the settlement, either party can come back for another bite of the cherry in the future at any time, any agreement between the two without a court ruling is pretty much meaningless. She needs a family court settlement, and for that, she needs a lawyer.


Looking to buy 1/2 oz Perth Mint gold cast bars, & any other interesting small cast gold and silver bars. Feel free to PM

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#31 2014-01-18 21:41:54

hihosilver
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From: Australia
Registered: 2010-09-23
Posts: 649
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Re: Intergenerational wealth, how is it done?

many thanks I'll tell her that and if any else has in put please sing out

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#32 2015-01-25 15:22:09

petey
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Registered: 2010-05-18
Posts: 1,149

Re: Intergenerational wealth, how is it done?

Bit of a thread dig, but I feel like this is a good link: https://books.google.ca/books?id=kZYDDv … oc_r&cad=3

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#33 2015-01-25 16:53:43

atlas
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From: Brisbane
Registered: 2014-03-09
Posts: 170
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Re: Intergenerational wealth, how is it done?

There's a book called 'the millionaire next door' that covers this topic very well. I recommend it.

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#34 2015-01-27 03:49:23

Contrarian
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From: Australia
Registered: 2010-12-16
Posts: 717
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Re: Intergenerational wealth, how is it done?

From what I've witnessed-

One generation puts in all the hard work and makes all the sacrifices to build an empire.

The next generation could see  how hard it was and probably had to become involved to make it work so they appreciate their wealth and  at least manage to maintain it.

The next generation gets everything handed to them on a platter.  For them, money grows on trees and they squander it.

The unfortunate part is that the generation that loses the wealth quite often have the same qualities that were needed to build the empire in the first place.. There's no need for them to reach their full potential so they never do.

C

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#35 2015-01-27 04:46:55

yennus
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From: Shanghai:Sydney
Registered: 2010-10-24
Posts: 4,796
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Re: Intergenerational wealth, how is it done?

Contrarian wrote:

...
The next generation gets everything handed to them on a platter.  For them, money grows on trees and they squander it.
...

I hear the Rothschild family have been doing better and better with each generation... I wonder how they do it?

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#36 2015-01-27 07:56:26

mmm....shiney!
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From: 昆士蘭
Registered: 2010-11-15
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Re: Intergenerational wealth, how is it done?

atlas wrote:

There's a book called 'the millionaire next door' that covers this topic very well. I recommend it.

Just bought it, will post my opinion later.


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#37 2015-01-27 12:16:15

SilverKendo
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Registered: 2013-12-26
Posts: 264
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Re: Intergenerational wealth, how is it done?

yennus wrote:
Contrarian wrote:

...
The next generation gets everything handed to them on a platter.  For them, money grows on trees and they squander it.
...

I hear the Rothschild family have been doing better and better with each generation... I wonder how they do it?

I've heard one strategy is to make wealth skip a generation. So if you work hard and make a lot of $ you don't give it to your kids other than to help them start off on the right foot. Then when the grandkids come to a working adult age you give your wealth to them (after they've already learned to put the nose to the grind stone). The alternating generational wealth creation and the delayed inheritance keeps it moving forward over many generations. On the other hand if you allow the money to flow in a linear direction father to son to grandson to great grandson you get the lazy silver spoon fed kids who often develop self-esteem issues trying to live up to granddad or dad. Is this true? I have no idea but someone explained it to me like this and it makes sense.

Last edited by SilverKendo (2015-01-27 12:17:02)

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#38 2015-01-27 13:38:34

petey
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Registered: 2010-05-18
Posts: 1,149

Re: Intergenerational wealth, how is it done?

Contrarian wrote:

The next generation gets everything handed to them on a platter.  For them, money grows on trees and they squander it.

If set up correctly the trust will not allow them to do this.

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#39 2015-01-31 22:47:20

mmm....shiney!
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From: 昆士蘭
Registered: 2010-11-15
Posts: 15,941
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Re: Intergenerational wealth, how is it done?

The authors of "The Millionnaire Next Door" Stanley and Danko found that immigrant groups that were under-represented as a proportion of the total population, tended to be over-represented as a proportion of the total number of millionaires in the US. The longer the group remains in the US though, the less likely they will be disproportionally represented:

In general, the longer the average member of an ancestry group has been in America, the more likely he or she will become fully socialized to our high-consumption lifestyle.

The top 3 ancestral groups (1990 census)? Israeli, Latvian and Australian.


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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#40 2015-02-01 11:23:21

AngloSaxon
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From: Sydney
Registered: 2012-10-26
Posts: 1,980
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Re: Intergenerational wealth, how is it done?

Where did the initial post that started this thread go? At this date the 1st post is mine and this definitely isn't my thread.


Age Res Proprias Tuas

Now reading: Coming Apart - The State of America by Charles Murray.

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#41 2015-12-17 19:56:11

mmm....shiney!
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From: 昆士蘭
Registered: 2010-11-15
Posts: 15,941
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Re: Intergenerational wealth, how is it done?

Cleardocs has a "Family Constitution" package available.

What is a Family Constitution?

The Family Constitution is a record of policies developed collaboratively by the family. The family may choose policies currently relevant to them while leaving others until later. They may also customise the details of the policies for the family's particular circumstances.

The Family Constitution helps families to:
focus on communications, development and harmony;
transition the stewardship and ownership of family wealth, including business interests, to the next generation; and
maximise benefits and manage complexities of being a family in business

What topics does the Family Constitution cover?

Having a Cleardocs Family Constitution in place allows the family to record, among other things:
the family's values and principles;
family aspirations for their business interests;
establishment of a governance structure;
decision-making and conflict resolution;
policies for important matters such as the employment of family members in the family business and education and development of family as current and future stewards;
overreaching investment strategy;
communication within the family and the business; and
liquidity and the entry into and exit from the family business


The woolgrower's target shall be the good thriving of his flock and its pastures, and so of himself and those whose livelihoods depend on his enterprise.
"The Woolgrower's Companion", 1906.

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