Wealth Without Structure: 81% of Large Estates in Mexico Lack a Continuity Plan

The study Family Office IQ: The Wealth Snapshot of Those Who Have Already Built Wealth in Mexico, conducted by Invested, identifies a high concentration of decision-making and low formalization in governance, management, and succession aspects among the analyzed estates.The construction of an estate and the necessary structure to manage it are two dimensions that the firm’s study analyzes separately. Its diagnosis shows that, among the participants, there are areas with higher levels of development and others related to governance, control, and succession that present lower results.One of the main findings of the report is related to continuity in the absence of the wealth leader.

81% Lack a Functional Continuity Plan

According to Invested, 81% of the wealth holders analyzed do not have a functional continuity plan in the event of the leader’s absence. The study also indicates that 37% of participants believe that a scenario of sudden absence could lead to “chaos” due to a lack of clarity or guidelines for handling such a situation. The concentration of decisions also appears in the day-to-day administration of the estate. According to the report, 52% of decision-makers define financial or estate matters individually, while 35% consult these matters with one or two trusted individuals. Furthermore, 71% directly monitor their assets, according to the research findings.

Governance and Succession Among Areas with Least Development

Invested uses the FOIQ Score as an indicator to analyze the wealth maturity level of participants. The average score recorded was 46 out of 100. The study disaggregates this score into different dimensions. Among those with higher percentages are Well-being and Longevity, with 61%, and Wealth Snapshot, with 56%. In contrast, the dimensions with the lowest scores are Integral Management and Control, with 35%; Governance and Decision Rules, with 37%; and Succession and Next-Gen Education, also with 37%. The results show where the main levels of development and lag identified by the study’s methodology are concentrated.

The Challenge of Documenting and Organizing Wealth

Among the actions proposed by

is the consolidation of a Family Asset Inventory, with information on which assets comprise the estate, under what legal ownership they fall, and their tax status. The study also highlights the need to establish decision-making rules and minimal governance bodies, such as committees or councils, for certain strategic matters. Another point mentioned is the gradual incorporation of the Next-Gen, with the purpose of involving new generations in financial culture and management before a wealth transfer occurs. The results thus position governance, control, and succession as specific dimensions within the snapshot Invested provides on the large estates analyzed in Mexico. The data presented in this note are part of the study Family Office IQ: The Wealth Snapshot of Those Who Have Already Built Wealth in Mexico, conducted by Invested. To learn about the methodology, results, and complete analysis on governance, wealth management, and succession, consult the full study here.The entry

first appeared on Líder Empresarial.