Amid shifting markets and political instability, families that endure are those guided by values and long-term purpose

By focusing on values, purpose and roles, wealthy families can ensure their legacies endure whatever storms lie ahead

Families of wealth often find themselves in turbulent waters: budgets that shift with political winds, global crises that disrupt markets, and sudden regulatory changes that alter the landscape of succession planning. In recent months, this disruption has been far-ranging, from proposed wealth taxes and volatility in global markets to governmental retrenchment in social and aid funding, all prompting radical reconsiderations in how high-net-worth families approach their investments and philanthropy.

In these moments of uncertainty, some families may feel the instinct to act immediately — restructuring portfolios, committing to new causes or rethinking succession on the back of headlines. But for advisers, the counsel is clear: pause before reacting.

When steering a ship into a storm, hasty manoeuvres risk destabilising a vessel; families who take the time to reflect are far better placed to respond sustainably to change.

Values as the anchor

True longevity in family wealth is not only measured in balance sheets, but in the continuity of values over time. In times of change, many look to predictions around markets, taxes or political shifts. Those that retain influence conversely begin by looking inward, finding direction in the philosophy that built wealth in the first place. Understanding what built the foundation creates a filter for today’s decisions and a compass for tomorrow’s leadership, ensuring decisions are considered rather than reactionary.

This understanding of direction matters more now than ever. More than $100tn in assets is expected to transfer across generations over the next 25 years, bringing new attitudes, expectations and governance styles to wealth stewardship. Without the benefit of lived experience at the helm of a family legacy, younger generations can fail to tell a squall from a tempest. Early involvement, therefore, is vital to ensure inheritors don’t act hastily and ensure the family ship is prepared for stormy conditions.

Preparing the next generation 

Some families see continuity as identity, preserving a business, heritage or name. For some, there may be a clear legacy goal: “I want each grandchild to have a foundation for their future.” For others, it may be about continuity of the business itself, sustaining jobs and a shared sense of purpose; and others still may envisage a lasting impact upon the world, more so with each passing generation.

Recent wealth creation has added further urgency. According to Forbes, new tech entrepreneurs alone are estimated to command a collective net worth exceeding $3.2tn — much of it controlled by first-generation founders without the benefit of established governance or legacy. For them, the task is not preserving history but creating it: establishing the frameworks that ensure future generations are prepared to weather storms, not balk at surprises.

As investment strategies evolve, the pursuit of continuity also brings greater accountability and transparency. Sophisticated measurement frameworks have become standard practice, offering greater insights into capital performance both financially and ethically. This is particularly crucial for families who measure success over decades rather than quarters; today’s decisions must stand the test of time, demanding greater diligence and scrutiny to ensure financial choices can endure changing conditions. With private capital under increased scrutiny, a forward-looking approach is essential to ensure that investments made now remain both robust and responsible in the years to come.

Political and economic currents will always shift, sometimes dramatically. What matters most is avoiding reactionary decisions and taking confidence from past longevity: just as families have weathered past storms, from the global financial crisis to the Covid-19 pandemic, so too can they withstand today’s volatility. By focusing on values, clarifying purpose, defining roles, and organising thoughtfully, wealthy families can ensure their legacies endure whatever storms lie ahead.

By: Ola Adeosun, head of regional wealth planning and family governance at LGT Wealth Management