What is the right size inheritance to give to your children?

I was first confronted with this question many years ago by an article in which the author asked if it made any sense to fund a child who has decided to rebel against everything you have ever stood for. –Should you give them an equal inheritance to that which you give your other children who are more deeply committed to the causes and values that you espouse?

It wasn’t that I had such a child, nor that I even had any wealth to pass to our children. But it got me thinking.

More recently, especially as our estate’s value has grown, I’ve been confronted by other questions. For example: Should the kids inherit everything you can give them? Read the rest of this entry »

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Continuing to think through the potential legitimacy of shifting from a profitable/taxable to a [profitable]/tax-exempt entity, I wrote to J____, our legacy planner.

The matter of board governance lays heavily on Sarita’s and my mind as we consider the possibility of shifting to a 501(c)(3) form. We have observed too many 501(c)(3)s to enter into this lightly. Some concerns: Read the rest of this entry »

Prior to speaking at our church on the 20th, the McWilliamses showed a slightly shortened version of a “Family Story” video you can see at Gail’s website.

I’d say Lydia, their next-to-youngest, was probably about 11 or 12 when she was interviewed for the video. And what she said shook me up.

“I can’t imagine what the world would be without me,” she begins. “The world would probably be missing my . . . ” Read the rest of this entry »

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 Read the rest of this entry »

For me, the highlight of our first family legacy planning meeting came relatively late in the day but just before we hammered out a consensus vision statement.

We had all talked a bit about our top values (both “Most” and “Least”). I don’t know that anyone felt that was particularly revelatory. Interesting. But only mildly so.

What blew me away was the next question we talked about (this was not in the Legacy Planning book): “Define what it means to be a ‘Holzmann.’ What defines you as compared to those around you?”

Whew! Talk about putting you (i.e., the family, all of us) on the spot! What would the kids say? Is there anything that we could agree on that more or less “defines” us as a family? Read the rest of this entry »

G____, our legacy planner, asked, “Suppose we were to say a family has successfully passed on its legacy to the next generation if two things, at minimum, are true: 1) the family’s wealth is still there when the first generation has passed away, and, 2) none of the members of the second generation have seen their lives destroyed due to improper use of funds; no family relationships have been ruined as a result of strife over money.

“Of families who use traditional financial and estate planning techniques and go no further, what percentage would you guess are successful, according to this definition, in the second generation? How many wealthy families still have the wealth and are still relationally intact in the second generation?”

“Maybe one or two percent?” I suggested. Read the rest of this entry »

As I noted, our investment advisor has been urging us seriously to consider hiring a Legacy Planner. (Note the difference between legacy planning and “mere” estate planning I described in my Estate Planning v Legacy Planning post.)

G_____, the gentleman whom our advisor recommended, presented a couple of graphics that I think give further insight into some of the differences.

Here I will present only the “Legacy Planning Pyramid”:

According to G____, “traditional” financial and estate planning comprise the first two layers of the Legacy Planning Pyramid. Read the rest of this entry »