Earlier this week, our colleagues at Balayan Group hosted an exclusive business breakfast dedicated to the establishment of personal funds. Evgenia Tyurikova joined the discussion on wealth protection, asset structuring, and succession planning.
According to the data presented during the event, 90% of large family fortunes disappear by the third generation, while 71% of investors believe their heirs are not prepared to manage the family business. A personal fund provides a formal framework for transferring assets and mitigating these risks.
Evgenia shared two practical recommendations:
Include a personal letter alongside the fund's governing rules. Before establishing the formal rules of the fund, the founder can prepare a separate document outlining their core principles, values, and decision-making philosophy. Should disputes arise between beneficiaries or the fund's governing bodies in the future, such a letter may help a court better understand the founder's true intentions.
Avoid appointing a family member or close acquaintance as the sole executive of the fund. Effective governance should be professional and collective. A team that includes financial experts, corporate secretaries, lawyers, and accountants provides far stronger protection for the founder's interests than relying on a single trusted individual without the necessary expertise.
According to the data presented during the event, 90% of large family fortunes disappear by the third generation, while 71% of investors believe their heirs are not prepared to manage the family business. A personal fund provides a formal framework for transferring assets and mitigating these risks.
Evgenia shared two practical recommendations:
Include a personal letter alongside the fund's governing rules. Before establishing the formal rules of the fund, the founder can prepare a separate document outlining their core principles, values, and decision-making philosophy. Should disputes arise between beneficiaries or the fund's governing bodies in the future, such a letter may help a court better understand the founder's true intentions.
Avoid appointing a family member or close acquaintance as the sole executive of the fund. Effective governance should be professional and collective. A team that includes financial experts, corporate secretaries, lawyers, and accountants provides far stronger protection for the founder's interests than relying on a single trusted individual without the necessary expertise.