Family Offices And The Bermuda Proposition

John Grisham's character, Troy Phelan, in "The Testament" has a dramatic approach to estate planning.

Mr Phelan, an elderly businessman with an estate worth billions had three failed marriages together producing eight children. Most of the children resent each other and are not involved in the family business.

Mr Phelan commits suicide and leaves a will revealing to his family that he has left his entire estate to his illegitimate child, a missionary, in Brazil. The result is hostile litigation and a business left in tatters.

There are numerous real-life examples reminiscent of the Phelan family. The growth of substantial Chinese family-owned companies, when followed by the death of the wealth creator and CEO, has exposed a cultural apprehension of many Chinese business owners to communicate with family members about the family business and wealth.