Creating an educational experience that fosters peer exchange and involvement entails more work and risk than a simple lecture, but family members will leave the session with practical skills, deepened relationships and enjoyable memories.
It is now becoming more common for families to focus their overall estate planning strategy on communicating a family vision expressing the philosophical and moral imperatives of the wealth creators, rather than merely on minimizing taxes. The common structure for providing incentives to encourage or alter behavior is the trust.
Family meetings can serve to update and educate family members on business and investment issues, reinforce family ties, and resolve conflicts. They can also be a lot of fun. But figuring out how to get the family members to the event, how to keep their attention once they've arrived, and how to make it fun in the process is no easy feat.
Our advice to anyone hesitating to bring about an intergenerational family foundation because the time does not seem right or there are too many family issues to confront is — just get started. There is no better time than now to have the satisfaction of helping others and, at the same time, to give your family the opportunity to grow and to discover the pleasures of working together.
Though the challenges to successful wealth transfer across generations may seem overwhelming, they can be overcome. Within the framework of open and honest communication and education, preparing the next generation for life with wealth can increase the probability that the wealth sustains, grows, and benefits many future generations. Along with five key principles to raising responsible owners of wealth, it paves a path where heirs are much better prepared for their inheritance as they become productive, contributing owners of wealth.
In a perfect world, parents would have a well-thought-out plan for wealth transfer, explain their intentions, and help their heirs learn their roles and responsibilities. But life doesn’t always unfold in an orderly way to provide such a roadmap. Sometimes, inheritors may need to step in to play a more active role so they can empower themselves with the knowledge and tools necessary to make the best decisions for themselves and their family’s legacy.
Most of the time when families gather, the focus is purely social—reconnecting, reminiscing, and “rest and relaxation” as a group. Occasionally, family members may also gather for limited financial management tasks, such as settling a loved one’s estate, or planning for how to manage shared assets such as land or a family vacation home. These family get-togethers are important to families no matter what their financial circumstances. For families with wealth, though, the need to connect can go beyond the social aspects.
Wealth coaching is essentially the study of one’s relationship with money and wealth. We all have a relationship with money, and through money messages that we learned at an early age, this relationship guides the majority of behaviors throughout our lives. Individuals and families who engage wealth coaches can benefit enormously across a broad spectrum of topics and issues as they participate in difficult conversations, learn about family systems, and devise governance strategies.
A young girl shares a story about the “weird gift” she received on her birthday from her grandmother. It included three jars that were labeled save, spend, and share. There was also an envelope with instructions and money inside it, and a note that said happy birthday and you’re old enough to start thinking beyond spending. With a set of guidance in her hands, she learned the importance and joy of sharing her resources.
Departing for college is a major life event for your family, marking a significant step toward your child's independence. Whether your child is going near or far, planning is critical. Follow this checklist to address critical healthcare, insurance, personal safety, and financial decisions.