There are compelling reasons to create your own family bank, but the most compelling reason is to avoid conflicts of interest. There are competing agendas on the part of the many service providers in the financial industry. The “business as usual” model is fragmented approach to a family’s resources as they are drained out into multiple directions to support a variety of agendas. There are multiple conflicts of interest, hidden costs and a hodgepodge, often, of uncoordinated investments, insurance and estate “planning,” in quotes because it is often incomplete.
A coordinated family bank model draws all the services your family needs together and focuses on giving the family control over their money at all times. The model offers a fully integrated wealth management process, absolute family control, intergenerational financial continuity, and is a strategy where wealth can grow for the family. A family’s best defense against conflict of interest is two fold:
1. Insist upon the right to remove and replace your trustees at any time; and,
2. Ensure that all financial matters are coordinated through your family bank.
The first is simple, just keep your eyes open and be clear with anyone drawing up your paperwork. The second is also simple when you put your trust in Pearson Financial Services.
The Family Bank will be a profit center for the family.