Richard Wilson: deciding how a failed project affects the next family request
Richard asked families to consider what happens to a later funding request after a family member loses money on an investment.
The next request was part of the planning
Near the end of his next-generation module, Richard listed questions about future family support. One concerned losing family money in an investment or two. He then asked how much the person could request for the next project.
The example left the answer to the family
Richard did not give a universal limit. His point was to think through the conditions and communicate the intended arrangement to the people structuring it. The distinction is between considering the next request in advance and first encountering the question after a loss.
In Richard C. Wilson's words
"What's the maximum amount of money they can go to the family for on their next investment if that happens." (Richard C. Wilson, How to Start a Family Office mini-series)
How to use this
- Record the family's intended treatment of a later request after a failed project.
- Keep the question separate from any amount Richard did not specify.
Questions and answers
Did Richard set a universal funding limit?
No. He asked the family to consider its own intended limit.
What situation triggered the question?
A family member having lost family money in an earlier investment.