Make a Difference with the Power of Philanthropy

For ultra-wealthy families, there comes a time when the older generation contemplates their legacy and how best to transition their wealth to the next generation. It’s been happening for many years, just as consistently as the sun rises each morning.

What’s been changing in recent times, however, are not only the sophisticated strategies and methods used for transferring this wealth, but the very definition of wealth itself.

What is wealth?

Of course, one may define wealth as financial assets that have been carefully managed and grown over time. These days, this definition has expanded to include an element of social conscience and duty toward the greater good. Noted billionaire philanthropists like Warren Buffett and Bill Gates have committed a large portion of their wealth to important causes around the world. It may sound paradoxical on the surface, but from their perspective, extensive charitable giving actually makes them wealthier when viewed from the context of purpose, impact and personal fulfillment.

Countless ultra-wealthy families have drawn a similar conclusion: it’s highly rewarding to embrace philanthropic activity that will serve society well for years to come, while teaching the next generation about the tangible and intangible benefits of providing for and serving those in need. It’s a wonderful lesson in generosity, humility, social responsibility and effective long-term wealth stewardship. Also, a shared approach to philanthropy may help reinforce family values and behaviors across generations.

A shift in thinking about legacy

In fact, with an estimated US$100 trillion of family wealth expected to be in play over the next two decades, a recent survey1 found that roughly 71% of ultra-wealthy individuals prioritized passing down their core values and personal legacy rather than solely creating a financial inheritance for their loved ones. The survey also estimated that US$18 trillion of this massive wealth transfer is expected to be earmarked for charitable causes, illustrating the growing power of philanthropy and the evolution of how ultra-wealthy individuals consider what constitutes a meaningful legacy.

These individuals see the many profound global challenges arising and intensifying – from increased poverty and human rights violations to environmental concerns, healthcare issues and more – so they desire to be part of the solution toward making the world a better place for all. A regimen of philanthropy enables families to align their capital with purpose, while also shaping a worthy legacy that can extend across generations.

Making it happen

With philanthropy, legacy and purpose are now top of mind more than ever, how can ultra-wealthy families combine strategic giving, values-based succession planning and a family governance framework to create enduring social impact?

At Corient, we recognize the proliferation of impact-focused investing and the need to integrate it into a broader financial plan that also encompasses intergenerational wealth transfer. Corient Wealth Advisors can support you and your family by helping implement a comprehensive philanthropic strategy that aligns with your long-term objectives. They will also work with you to create a governance framework that helps inform family decision-making as it pertains to charitable giving. 

Also, our advisors can assist with building a tailored wealth succession plan that focuses on both your financial assets and your family values, while engaging the next generation and preparing them to fulfill their roles as responsible, enlightened stewards of the family wealth. And should you wish to explore impactful uses of your wealth for charitable causes, our experienced and well-connected advisors can offer you access to a network of reputable philanthropists and institutions.

Please contact us today to learn more about how you can take philanthropy and lasting social impact to the next level as part of your legacy and wealth transfer strategy.

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