A Tale of Two Legacies
Wealth, when managed with purpose, can endure for generations. But when misaligned with family values, it can dissipate just as quickly. The contrasting stories of Henry Phipps, who created the enduring Bessemer Trust for his family, and Frank Woolworth, whose fortune largely vanished within a generation, offer powerful lessons for wealth creators and their advisers.
The Phipps Legacy: Wealth with Vision
Henry Phipps understood that building a legacy required more than accumulating wealth. By establishing the Bessemer Trust in 1907, he established a future-proof wealth management framework that combined a clear financial stewardship structure, a vision of family governance and a culture of shared values. Over a century later, the family trust manages $140 billion of assets and serves as a model of enduring family prosperity, opportunity and social responsibility.
Phipps’ success lay in his proactive planning:
- Aligning his wealth with his values.
- Engaging his heirs in their stewardship responsibilities.
- Building governance systems to preserve and grow the family fortune.
The Woolworth Legacy: A Fortune Lost
In stark contrast, Frank Woolworth, founder of the famous retail chain, amassed an even greater fortune, one that symbolised the American Dream. Yet, within a generation, the wealth and the family structure that supported it crumbled. His heirs lacked the guidance, tools, skills, values and shared sense of purpose necessary to manage their inheritance effectively.
The lesson? Without clear planning and a legacy framework, even the most substantial fortunes can erode.
Hereditas: Bridging the Gap Between Wealth and Legacy
The Hereditas legacy planning process offers a modern-day solution to wealth creators wanting to avoid the Woolworth’s family fate and emulate the Phipps’ family success. It’s not just about protecting wealth but creating a purposeful plan that engages the next generation and aligns with family values.
By learning how to guide and coach families through the Hereditas legacy planning and management process, financial advisers and financial planners can help their clients:
- Define their purpose – Beyond financial goals, what enduring benefits and opportunities can well-managed wealth deliver for the family’s future?
- Create governance systems – How can structures like family trusts, family councils and stewardship agreements ensure continuity?
- Engage the next generation – What can be done today to prepare heirs for the responsibilities of wealth management?
A Unique Opportunity for Financial Advisers & Planners
By integrating Hereditas into their services, advisers and planners become not just financial experts but trusted Wealth Management Coaches. This approach allows them to:
- Build deeper relationships with clients across the generations.
- Differentiate themselves from competitors.
- Help families avoid the pitfalls of unmanaged wealth transitions.
Practical Tools to Secure a Legacy
Tools like digital vaults, legacy planning software, and structured coaching processes make it easier for advisers to deliver these services effectively. Families can preserve not only their wealth but also the values and vision that underpin it.
A Call to Action: Don’t Let Wealth Become a Cautionary Tale
The story of Frank Woolworth serves as a reminder of what happens when wealth management lacks purpose and planning. But with the right tools and guidance, advisers can help their clients write a different story—one of enduring impact and prosperity, like Henry Phipps’.
👉 Learn more about how the Hereditas wealth manager academy can help you elevate your practice here or contact me today to explore how you engaging with one of our Hereditas-accredited wealth management coaches can help you build a lasting legacy for your family.
