“One generation plants a tree, the next generation enjoys the shade” – Anonymous The holidays bring family together to relive old family stories, create new family traditions and bring memories of family that are no longer with us. That is why this series of posts is timely. Realizing that the true wealth of your family is not financial, it’s the memories, lifetime stories, relationships, values and trust that represent your true wealth and your family’s inheritance.
Continuing with thoughts from Beating The Midas Curse, it is difficult to accept the idea that the most important thing in planning for your family’s future is the transfer of assets and tax savings, yet that is what most planning accomplishes. The values by which you live are the most important asset, and the greatest inheritance, that you will leave your children. Planning for your family’s future, successfully, has nothing to do with affluence. It’s NOT about the money. It’s about your family.
Realizing that your family has a 90% chance of losing its financial wealth within three generations, logically it appears that families are not necessarily best served by traditional planning. When something has a 90% chance of happening, it is virtually a certainty!
When the values by which you have lived are not passed on, your financial wealth will also disappear. Your financial worth is a statistic….a number…it is not your legacy. Money is really just a tool to help unify families. Your family is not defined by the things you own. The most important things your kids will inherit will be while you are alive…
Realizing that your family has a 90% chance of losing its financial wealth within three generations, logically it appears that families are not necessarily best served by traditional planning. When something has a 90% chance of happening, it is virtually a certainty!
When the values by which you have lived are not passed on, your financial wealth will also disappear. Your financial worth is a statistic….a number…it is not your legacy. Money is really just a tool to help unify families. Your family is not defined by the things you own. The most important things your kids will inherit will be while you are alive…
| The successful 10% of families that keep their financial wealth intact beyond three generations do a few things differently…obviously. They intentionally pass along values, family stories, life lessons…as well as their money. They focus on building strong communication and trust. They prepare their family for both their emotional & financial inheritances. |
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Talking about family wealth does not mean talking about the actual numbers on the balance sheet for your business or family. It’s not about the size of the assets, but what the money represents -- hard work, dedication, overcoming failures, etc. The goal is to help everyone realize that money is just a tool – a resource to help strengthen your family through the values you recognize as your most important asset. . It is less about the money and more about preparation and intentional action and conversations.
Similar to last week's closing mental exercise, try to picture the ideal family gathering 2-3-4 generations into the future, when you are no longer around.
How far will your tax/estate planning to-date take your family toward reaching your ideal picture as it relates to family harmony, individual accomplishment, community involvement, etc.
- What is happening?
- What is your family talking about?
- How are their conversations?
How far will your tax/estate planning to-date take your family toward reaching your ideal picture as it relates to family harmony, individual accomplishment, community involvement, etc.
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