Introduction
Wealth, once built, faces its most difficult challenge: continuity. Statistics show that 70% of wealth is lost by the second generation and 90% by the third. For India’s growing base of UHNIs, the priority is no longer just wealth creation-but wealth preservation, clarity, and succession.
Why Governance Matters
In Indian families, emotional ties often intersect with financial stakes. Without a structured framework, even the most successful families face internal disputes, misaligned goals, or diluted ownership. Governance is not about control; it’s about clarity.
Core Components of Family Governance
- Family Constitution: A document that captures values, responsibilities, voting rights, succession mechanisms, and dispute resolution processes.
- Board of Advisors/Family Council: Multi-generational representation that guides decision-making across investments, philanthropy, and business interests.
- Education & Involvement of Next-Gen: Grooming the inheritors to become responsible stewards-not just recipients-of wealth.
Wealth Structuring Tools for Continuity
- Trusts & Foundations: Efficient vehicles to ring-fence wealth, offer asset protection, and ensure tax efficiency.
- Holding Companies: Ideal for families with operational businesses, enabling clearer ownership and succession mechanisms.
- Cross-Border Asset Planning: Ensures compliance, optimises taxation, and enables smooth repatriation of assets across jurisdictions.
Global Best Practices Adapted for India
- Annual family retreats focused on strategy and education
- External fiduciary advisory boards for neutral decision making
- Philanthropic legacies tied to family purpose
Conclusion
A fortune without structure is a castle built on sand. At Anunnaki, we help families design their governance blueprints so that their wealth endures-not just for decades, but for generations.
