Introduction
In today’s increasingly dynamic economic landscape, one of the most pressing concerns for high-net-worth individuals and families is the question of legacy – how to preserve, manage, and grow Wealth across generations without sacrificing flexibility or long-term security.
As families navigate a maze of financial vehicles, tax laws, global regulations, and societal expectations, one dilemma remains: Should Wealth be anchored in legacy assets or maintained in liquid, agile formats? Legacy investments refer to enduring assets such as real estate, family-owned businesses, art collections, or private equity holdings. These symbolize long-term vision, intergenerational pride, and emotional attachment. Often imbued with personal or historical significance, legacy assets serve as physical representations of a family’s lineage and influence.
” They are meant to appreciate over time and inspire, unify, and instill values in future generations. However, legacy assets are typically illiquid, and they often come with management challenges, or burdensome upkeep. “
Liquidity, on the other hand, offers freedom and adaptability. Liquid assets such as publicly traded equities, bonds, ETFs, or cash reserves provide immediate access and maneuverability, allowing heirs to pivot with market conditions, seize new opportunities, or address unforeseen needs without dismantling the family’s foundational investments.
Finding the right balance between legacy and liquidity is an art and a science. It involves understanding family goals, risk appetite, time horizons, and governance structures.
The major take on the topic
The process begins with asking essential questions: What are we trying to preserve? What are we trying to grow? And what do we want our Wealth to enable in the future? Families that successfully navigate this balancing act often adopt multi-tiered financial structures. This could include setting up holding companies or special-purpose vehicles (SPVs) to house legacy investments while building parallel liquid portfolios for operational flexibility.
Sometimes, donor-advised funds, philanthropic foundations, or private trusts are established to manage long-term charitable giving in line with family values. Estate planning plays a central role here. Utilizing tools such as generation-skipping trusts, family-limited partnerships, and tax deferral strategies ensures that the wealth transition is smooth, tax-efficient, and legally sound.
Moreover, involving heirs early in governance discussions prepares them for responsible stewardship.
- Financial literacy training
- investment committee exposure
- vision clarity helps the next generation
Evolve from passive recipients to active legacy-builders.
Viewing this not as a static decision but a dynamic journey is also essential. As life events unfold, business exits, marital changes, new ventures, or geopolitical shifts, the structure of Wealth should evolve.
Conclusion
At Devraux & Co., we understand that every family story is different. Our approach is holistic: We don’t just manage portfolios; we curate legacies. We help clients identify which assets serve heritage, which serves access, and how both can coexist. We collaborate with estate attorneys, tax advisors, and next-gen leaders to create adaptable, ethical, and future-proof frameworks. In every case, our focus remains the same: ensuring that Wealth becomes a tool for continuity, not conflict.
The first step is dialogue for those looking to embark on this journey. Begin with open conversations about purpose, values, and expectations. Involve professionals who not only understand numbers but also human dynamics. We must recognize that legacy and liquidity are not opposing forces but partners in the story of enduring Wealth. As the world changes unprecedentedly, flexibility is no longer optional, and permanence must be intentional. Legacy provides the roots; liquidity offers the wings. At Devraux & Co., we help you grow both.
