The Destructive Power of Family Wealth: A Guide to Succession Planning, Asset Protection, Taxation and Wealth Management

Praise for

THE DESTRUCTIVE POWER OF FAMILY WEALTH

"In The Destructive Power of Family Wealth, Philip Marcovici shares his perceptive insights about how families can avoid allowing the psychology, complexities and dynamics of wealth from poisoning family relationships. Drawing upon decades of Philip′s work as a leader in this field, this book is full of rich perspective, critical lessons learned and practical guidance. The Destructive Power of Family Wealth will be deeply valued by both family members and their advisors."
Richard Weisman, Hong Kong/China head, Baker & McKenzie

"Already one of the leading lights in the field of international wealth management, Philip Marcovici has now written a superb book on how wealthy families can protect themselves and their wealth. It clearly reflects his passion and long–held views about what′s wrong with the wealth management industry too much secrecy, a self–serving orientation and a lack of objectivity as well as the many dangers within families themselves. Drawing on his vast experience as an advisor to wealthy families around the world, Philip shows us a better and safer way forward. It is an engaging and much–needed piece of work which should be required reading for all wealth owners and wealth advisors."
Tom McCullough, Chairman and CEO, Northwood Family Office; Adjunct Professor, Rotman School of Management; Co–Author, Family Wealth Management

"Marcovici′s timely and authoritative book lucidly shows how the destructive force of money in families can be channelled constructively. This book is a comprehensive review of legal, financial and human aspects of wealth management from one of its most seasoned practitioners."
Nigel Nicholson, Professor, London Business School; Author, Family Wars and The ′I′ of Leadership

"A lifetime practitioner′s experience in one insightful volume, this book is required reading both for wealth owners and for those that advise or hope to advise wealth owners. Marcovici′s advice is to hope for the best but plan for the worst. As well as offering a clear way forward for the global wealth management industry, he also shows how asking the right questions, enlisting suitable advisers and seeking the truth, enable wealth owners to enjoy their wealth and exert a wide helpful influence in the world, as opposed to the unappealing but often tragic alternative of watching wealth destroy the thing wealth owners purport to care about most: their own family and their family legacy."
Michael Morley, Former Chief Executive, Coutts & Co

"During his years as a practicing tax lawyer, Philip Marcovici was one of the few voices to warn the comfortable world of private banking of the regulatory tsunami about to engulf it. As the wealth management industry now struggles to reinvent itself, Marcovici, lucid and provocative, holds up a mirror to both the owners and the managers of private wealth, posing often uncomfortable questions and framing important issues. Full of real–life examples, The Destructive Power of Family Wealth is a better investment of time and money than any number of private banking seminars."
Amaury Jordan, Founding Partner, Avalor Investment AG

Preface xiii

Acknowledgments xvii

About the Author xxi

Introduction 1

Chapter 1 Any Amount of Wealth is Enough to Destroy a Family 7

Chapter 2 The Psychology of Wealth 19

Chapter 3 The Move to Transparency 45

Chapter 4 Understanding the World of Taxation 65

Chapter 5 The Needs of Wealth–Owning Families 95

Chapter 6 The Tools of Wealth Planning 163

Chapter 7 Advisors We Need Them but Need to Control Them 195

Chapter 8 Getting it Right 215

Addendum: The Need for Dialogue on Tax Transparency 237

Glossary 251

Index 267

PHILIP MARCOVICI is actively involved in education and strategy across the legal and tax spectrum. He has extensive experience advising multinationals, financial institutions and families on the international and domestic aspects of Canadian, Hong Kong and U.S. taxation, as well as on commercial issues relevant to cross–border transactions. He advises clients on issues related to the use of trusts and insurance products and continues to work with governments and international agencies on strategy and treaty negotiations. Among others, a recipient of the Lifetime Achievement Award from the Society of Trust and Estate Practitioners, he teaches widely and is an adjunct faculty member at the Singapore Management University.