I’ve already read Jay Link’s Family Wealth Counseling.

He’s issued a clarion call to pay attention not only to the financial aspects of an estate plan or legacy plan, but, I would say, he calls our attention even more to the social and spiritual/emotional issues related to one’s . . . lifetime legacy.

I chose those last two words carefully.

I think we aren’t normally challenged to think in terms of our lives when it comes to estate planning. We are led to think in terms of death, dying, and what happens after our lives are over.

Link, by contrast, calls us to think of what we are “all about” here and now. –What do you believe in? Like? Enjoy? What causes are you involved in? What are your priorities? . . .

The federal government has passed laws requiring all wealthy Americans to donate a considerable portion of their families’ wealth to the general welfare of this country. [What Link calls our Social Capital.] . . . However, . . . the federal government gives you a choice in how you support the general welfare of our country. You can do so as an involuntary philanthropist or you can do so as a voluntary philanthropist.

Involuntary philanthropists agree by default simply to relinquish that portion of their accumulated wealth going to support others to the federal government, giving the government the authority to distribute those funds as it sees fit. . . .

In contrast, voluntary philanthropists choose to self-direct their Social Capital to the causes and organizations they wish to support–those that they believe are doing the most good for the most people.

–pp. 8-9

Link says it is the task of a qualified Legacy Planner (or, as he calls them, “Family Wealth Counselors”) to help people sort out the causes they believe in and to help them strategize how they might best support them now, during their lives, and later, after their deaths. And it is also the Legacy Planner’s responsibility to help us identify our internal visions, purposes, values, and dreams and then “make them come to pass” through strategic planning.

One of the key points I got from the book is the idea that most of us who have built wealth have done so through a pet project, a career or business, into which we have poured our lives. We have done this, at worst, not merely for the money. At best–and I imagine this describes most of us–we have done it for love . . . either love of the project, career or business itself or a deep belief in the value this project, career, or business offers to the world. (We may do it for money as well. But, ultimately, the money pales in comparison to what else this project/career/business offers.)

I can’t find where in the book I found this; maybe I came up with this idea on my own as a result of reading the book; but I got the idea that Link suggests, “Listen. You’ve been pursuing this path up to the present. If you believe in it, wouldn’t you like to make it continue on into the future . . . not only in your lifetime, but afterwards?” And, he suggests (again, I can’t find a reference, but I get the sense that this is his message), “So you’ve been pursuing this path for pay or profit; why don’t you pursue it with your Social Capital?”

“[W]e sometimes hear a wealthy person say something like, ‘I’m not charitably inclined,’” Link says.

Our response is always the same, “You are not charitably inclined? Based upon your current plan, you seem to be very charitable. What surprises us is just how philanthropic you will be.”

Everyone with wealth is going to be a philanthropist in one form or another. In fact, many of America’s affluent donate more than half of their collective wealth to a nonprofit organization with headquarters in Washington, DC and fundraising offices in every major city in America. However, you can have charitable organizations, or than the federal government, be the beneficiary of your Social Capital.

–p. 27

Link then makes an additional claim that I’ll have to see to believe:

Something significant often results when a family chooses to self-direct their Social Capital to their chosen charities instead of the IRS. In many situations, the parents actually end up with an increase in their net spendable income for the rest of their lives. They make a profit by giving it away.

This increase in the parents’ income can translate to a larger inheritance for the heirs. In fact, if the parents believe it is in their family’s best interest, we can show them how to pass the full value of their wealth on to their heirs with no shrinkage whatsoever.

–p. 27

Pretty cool, if it really can be done. . . .

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This entry was posted on Monday, September 10th, 2007 at 6:44 am and is filed under estate planning, legacy planning, purpose, success. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.