Traditional estate planning concentrated for a long time upon hard assets: the money; whereas its originators now embrace a more effective approach driven by some of life’s most treasured assets: values & relationships. Tax planning, legal and accounting advice often drove the process, whilst still incredibly important, legacy giving is about much more than just giving money. It’s about making lasting changes, addressing the root cause of problems, wanting both the current and next generation to be engaged and perhaps remembered, providing a “ leg up “ and continuing to encourage those things in our society which most benefited us.
Wealth transfers seldom fail because of a lack of legal and tax advice, but rather from inadequately prepared heirs and a breakdown of communication and trust. Successful estate planning results when families embrace philanthropy together as a family activity, where older generations can teach younger ones about stewardship, societal responsibilities and obligations as citizens. Making Philanthropic decisions as a family group demonstrates a process to help others, builds trust, communication and a valuing of the concept of the stewardship of family wealth.
This process is impactful for the next generation as they learn about the challenges and the benefits of wealth: to define the better aspects of wealth instead of being defined by it.
As an example a Family Foundation can be established originally with a minimal amount of capital and a maximum amount of stewardship example to allow the next generation to research various possible philanthropic supports, partner with other family members, make joint decisions, establish support parameters and most importantly allow the next generation a measure of teaching, training and legacy understanding. A happy additional intended consequence is often the eventual resultant successful family estate planning and wealth transfer.
