When most Australian families think about succession, they think about the will. Who gets the beach house, who keeps the business, how the share portfolio is divided.
In my work with families, I see that as precisely where some of the biggest and most expensive mistakes begin. Too often, succession planning is seen as something for other people. Families tell themselves they are not large enough, or complex enough, or that this is a topic for billionaires and dynasties, not for them. Then something changes, such as an adverse event in the family, the sale of an asset or a tax issue, and they realise they should have started much earlier.
As Head of Family Advisory at LGT Wealth Management Australia, my focus is the family rather than the portfolio. With background in law, tax, accounting and, most importantly, empathy, and I help families think beyond investment returns, towards the structures, governance and conversations that will determine whether their wealth survives them.
It is a role that is strongly informed by the experience of our owner.
Unlike many other global wealth managers, LGT is privately owned by the Princely House of Liechtenstein, a family that has been a responsible business owner for almost 900 years and has guided the development of LGT for more than 100 of those.
The Princely Family’s own story is a practical example of what long term, values-based governance looks like. Over more than 26 generations, they have used clear rules, well-conceived structures and shared principles such as personal responsibility, modesty and the idea that with wealth comes social responsibility to preserve and grow their wealth, and to have political, corporate and social impact.
Importantly for our clients, the Princely Family is both owner and largest client of LGT. Their experience of building and preserving wealth over centuries underpins our emphasis on family governance, which we define as the rules, forums and shared understandings that sit behind any durable succession plan. It is a living example that governance is not an abstract legal exercise. It is something lived, revised and tested over time.
One of the most persistent misconceptions I encounter is the confusion between inheritance and succession.
Most families are familiar with the term “inheritance”. They discuss how assets will be split up upon the death of the incumbent generation. It is a very natural concept that is easy to understand. However, it does not account for how those assets will be managed, controlled and looked after. It does not factor in who those assets are intended to serve, and for how long. It does not prepare those heirs for the rights and responsibilities that they will also inherit along with the asset. And it does not encourage a mindset of stewardship and accountability.
That is where the broader term of succession comes in.
Succession is less about who gets what, and far more about who gets to control what, under which circumstances, for whose benefit, and for how long.
When we begin working with a family, one of the first tasks is to examine whether their existing structures, often layers of companies and trusts built up over time, are fit for purpose for the coming decades. Once we map everything out, what we often see is that very few of the assets are owned, in the traditional sense, by anyone. Entities own entities. Trustees hold assets on behalf of others. Control may sit with individuals who are not the eventual economic beneficiaries.
So the question of inheritance, such as “who gets the house, who gets the shares”, becomes almost irrelevant. Succession, and planning for succession, becomes very relevant. The real conversation shifts to who will control these structures, according to what rules, and how they will be held accountable.
At LGT Wealth Management, we draw a deliberate distinction between:
This multifaceted approach, combined with strong corporate governance, is critical if you want to create a legacy that will thrive through generations. It allows families to separate questions such as “who can be an owner” from “who can work in the business” or “who sits on which board” and “how do we make decisions when we disagree”.
For many Australian families, this is a new way of thinking. They are used to dealing with their tax, investment and legal issues separately, but they may not have considered the broader context of governance. When they do, it highlights that the real goal is not just tax efficiency or investment return, but long-term resilience, financially, relationally and reputationally.
Legacy is not built on good intentions. It is deliberate. Designed. It reflects lessons learned, hardships, relationships, impact and success. It captures purpose, values and behaviours.
It survives family members from the past and represents family members of the future. It is, undeniably, the greatest asset of the family.
Designing that legacy starts with recognising that succession is not the reading of a will. It is a long, structured conversation about control, responsibility and the future, and the earlier that conversation begins, the better equipped the family will be when change inevitably arrives.
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