Complete Family Wealth

Auteur

JAMES E. HUGHES, JR. is a retired attorney and the author or co-author of several books on the dynamic preservation of true family wealth, including Family Wealth: Keeping It In The Family, Family: The Compact Among Generations, and Cycle of the Gift: Family Wealth & Wisdom.

SUSAN E. MASSENZIO, PHD, is a psychologist and co-founder of Wise Counsel Research, a think tank and consultancy. She has extensive experience consulting to senior executives, helping leaders develop effective succession plans. KEITH WHITAKER, PHD, is an educator and co-founder of Wise Counsel Research. He has extensive experience consulting to leaders of enterprising families, helping to plan succession, develop next-generation talent, and communicate around estate planning.

Texte du rabat

A primer for families of high net worth on how to manage their qualitative and financial wealth for generations The second edition of this foundational work, Complete Family Wealth: Wealth as Well-Being provides proven tools and best practices for families of means to use in maturing, maintaining, and managing personal and legacy wealth long into the future. The book is divided into three parts: the "what"--what is meant by family, wealth, and enterprise; the "who"--the persons crucial to family enterprise flourishing; and the "how"--specific practices families can use to enhance and grow family wealth. The second edition of this work places the health and well-being of the individual members of the family unit at the forefront of every aspect detailed within the book. A natural product of this focus is an increased awareness of the social complexities of wealth that have come to the fore in recent years, and the team of expert authors here address the responsibility of private wealth to the public good. In addition, Complete Family Wealth's second edition provides readers with: A new chapter on "the big reveal," suggesting ways to encourage positive, life-affirming reception of the revelation of present or future wealth An additional chapter on preserving the beloved family vacation home Two new appendices: "Fiduciary Course Curriculum," dedicated to enhancing the education of trustees and beneficiaries; and "Key Practices for Families During Challenging Times," a response to the pandemic but relevant to all trying periods for families Examples that make these practices accessible to a broad audience across the wealth spectrum. Having shaped the language used by families and their advisors with the first edition, Complete Family Wealth's second edition is essential reading for families of high net worth and their financial advisors. It will also be of interest to family offices, fund managers, as well as private investors.

Contenu

Preface to the Second Edition xv

Preface to the First Edition xvii

Introduction

An Invitation 1

A Welcome from James (Jay) Hughes, Esq 1

A Welcome from Dr. Susan Massenzio 3

A Welcome from Dr. Keith Whitaker 4

The Path Ahead 6

Part One

Chapter 1 Complete Wealth 9

Right Understanding 9

Complete Wealth 10

The Five Types of Qualitative Capital 11

Growing Capital 13

A Provocative Comparison 16

Measuring Qualitative Capital 17

Chapter 2 Family Enterprise 19

Affinity 19

Flourishing 20

The Three-Circle

Model 22

Active Ownership 25

x Contents

Transition 28

Time 30

Chapter 3 Principles 33

Part Two

Chapter 4 The Rising Generation 37

Why Rising? 37

The Effects of the Black Hole 38

The Challenge 40

Meeting the Challenge 42

Rising in the Middle Passage 45

Setting Off 45

Chapter 5 The Big Reveal 47

Confirmation 47

What's Next? 49

The Pause 50

Courage 53

Chapter 6 Parents 55

Giving 55

Know Thyself 56

Nothing Too Much 57

How Much Is Enough? Fair versus Equal? 58

Communication and Control 58

Giving as Grandparents 60

Letting Go 62

Chapter 7 Spouses 63

Tough Questions 63

Fiscal Difference 63

The Three-Step Process 65

Spouses and Family Meetings 67

Blended Families 68

Chapter 8 Elders 69

"Old Age Hath Yet Its Honor and Its Toil" 69

Characteristics 70

Two Practices 72

Chapter 9 Trustees and Beneficiaries 75

Human Consequences 75

Vocabulary 76

Activity 80

Distributions 83

Conclusion 87

Chapter 10 Advisers 89

Questions to Consider 89

Money 90

Personnes de Confiance 91

Counselors, Coaches, and Facilitators 92

Mentors 93

A Father's Wisdom 94

Chapter 11 Friends 95

Friends as Wealth 95

Wealth and Friends 97

Part Three

Chapter 12 Character 101

History 101

What Works 103

Chapter 13 Work 105

Meaning 105

Strengths and Flow 106

The Human Work 107

Play 108

Chapter 14 Talking with Children about Wealth 111

Development 111

The Power of the Teachable Moment 112

Are We Rich? 112

Curiosity 113

Allowances 113

Adolescents 114

Managing Privacy 116

Chapter 15 Prenuptial Agreements 117

Introduction 117

What Is a Prenuptial Agreement? 118

How Best to Approach a Prenuptial Agreement 120

For Parents of the Prospective Spouses 121

Chapter 16 Getting Started 123

Questions 123

Questions for Reflection 124

Practices 124

Chapter 17 Family Meetings 127

Preparation 127

Why? 128

What to Do in a Family Meeting? 129

Who to Have at a Family Meeting? 130

When to Hold a Family Meeting? 131

How to Run an Effective Family Meeting? 132

Where to Hold the Meeting? 133

Chapter 18 Family Stories and Rituals 137

The Stuff of Life 137

Rituals 139

Chapter 19 Family Mission Statements 143

Why a Family Mission Statement Matters 143

What Is a Family Mission Statement? 144

How to Create a Family Mission Statement 145

How to Use a Family Mission Statement 146

Chapter 20 Family Governance 149

Humility and Freedom 149

Constitution, Council, and Assembly 150

Design 153

Ratification 154

Chapter 21 Financial Capital 157

Return 157

Two Practices 159

Chapter 22 Preserving a Family Vacation Home 165

Hard Questions 165

Family Culture as the Solution 166

Facing Realities 167

Chapter 23 Family Philanthropy 169

The Benefits of Family Philanthropy 169

Philanthropy for the Family 170

Getting Started 171

Magnificence 173

Conclusion

Individual Flourishing 175

Many Blossoms 175

The Five Ls 176

The Four Cs 177

Three Little Words 178

Epilogue

The Future? 181

Evolutions in Human Development 181

Changes in Family Structure 182

New Understandings of Family Wealth 182

China 183

Appendix One: Fiduciary Course Curriculum 185

Appendix Two: Key Practices for Families During

Challenging Times 195

About the Authors 201

Index 203