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As I reflect on the 8 years since I founded Wealth Legacy Advisors in July 2013, and throughout my career working with ultra-high net worth families, the one consistent question I hear is: What are other families doing in this situation? How are other families successfully raising their children in an atmosphere of wealth to become competent and confident stewards of their wealth?

I have worked with many families of wealth over the course of my career. The beauty and the thrill of the work that I do is that every family is unique, like a snowflake; nevertheless, a distinct pattern has emerged in families who have engaged me to help guide them through a particular challenge they face. In all cases, the families have significant wealth, whether inherited or created at their generation, such that they are thinking about their legacy and the generations that will come after them.

Although I am a ‘recovering’ Trusts & Estates attorney with a J.D. and LL.M. in Taxation, I do not practice law or give any legal advice. Although I am a CPA and have an MBA, I do not give any tax, accounting or professional advice of any kind, but I use my skills, background and experience to inform my work with enterprising families and the challenges they face.

Some recent examples of families* who have engaged me to facilitate their discussions include:

The Dixon family created a family bank-like structure to provide seed money to family members who wished to start a business, with required family co-ownership for any business launched as a result. One family member’s business did not match the ownership structure envisioned by the rest of the family, which resulted in disharmony and upset.

Our work with the family led to a deeper discussion of the family’s underlying values, including how to educate the grandchild generation about the family’s story and principles. The values discussions branched out into a vision of a collective family philanthropy initiative.

The Lynch family faced an impending leadership succession dilemma. The business founder and visionary was approaching age 80, the two other family members active in the business were in siloed operational roles, and the founder did not believe they had the strategic skills to succeed him in the top role.

After a series of family meetings, the family collectively decided to sell the company now while the founder was still able to maximize sale value.

The George family, whose operating family business was planning a significant transaction that required all the shareholders to commit to keep their capital invested in the business for a period of years. For financial as well as family dynamics reasons, some of the cousins wanted to deploy their capital elsewhere.

After a series of facilitated meetings centering on fairness and respect, these cousins exited the family business so they could strengthen their family relationships without the stress of being co-investors. The remaining family members were pleased to have family harmony restored.

The Harris family had established a family limited partnership to invest in private equity. One 2nd generation family member managed the private equity and asked for an enhanced compensation formula. This request sparked dissention and conflict, but it turned out that the underlying issue was actually the perceived favored position of this family member with the family patriarch.

Our mandate was to restore family harmony among the 2nd generation. One of our facilitated family meetings culminated in a spontaneous group hug among all of them!

These stories all are different, but the one common theme is the struggle at the intersection of family business and the dynamics of inter-generational communication.

 

*Names and some details changed to preserve client confidentiality.

 

Susan was interviewed by LionsGate Advisors on their podcast, Living a Richer Life by Design. We talked about the so-called “soft” issues of wealth that are the hardest for families to navigate. In this podcast, I shared some tips and techniques to help families of wealth address the biggest challenges of raising the next generation of wealth.

Please click to listen to the LionsGate podcast HERE or read a short article about it in Insights for Leaders online magazine as published on June 9, 2021.

Kirby Rosplock, PhD of Tamarind Learning interviewed me for her podcast series, Wealth Education Essentials. Read an article about it as published on March 3, 2021 in Talking Trends online magazine here, or listen to the 15-minute interview titled Tips for Raising Successful Children of Wealth.

*All credit to Jeff Savlov, ACFBA, of Blum & Savlov, LLP for the “Sippy Cup” reference. Deep apologies for the omission. www.blumandsavlov.com

Susan was interviewed by Brett Dearing of BXO Business Owners Exchange on his podcast “The Exit,” which focuses on privately-held and family-owned businesses. We discussed family meetings in the time of COVID, and the challenges business owners face with the tricky conversations around wealth transfer. Read a summary published in Insights for Leaders on February 3, 2021, with a link to listen to the podcast in full.

It is no small understatement to say that 2020 has been a year for the record books, not to be easily forgotten.

At this time of Thanksgiving, I am reflecting back on all I am thankful for.

I am beyond thankful to the healthcare workers who put their very lives on the line every day to care for the many victims of this virus.

I am thankful that neither I nor my close loved ones have been touched by this deadly virus which has impacted so many lives already. We often say that if you have your health, you have everything. 2020 has brought that into stark reality.

I am thankful that I am able to work from home, as are the members of my immediate family. And I am thankful to all the essential workers who show up for work every day to make it possible for us to work from home.

I am thankful that technology has enabled virtual business meetings and personal informal gatherings to occur safely, without the need for travel or unnecessary risk.

I am thankful to all the families, family offices, family owned businesses, and all of their trusted advisors, as well as all of my business friends and the conference producers, meeting planners and podcast hosts that I have virtually met or worked with this year.

And finally, I am thankful to my family and my family by choice for absolutely everything. You give my life meaning and joy.

Wishing all of you a safe, happy and healthy Thanksgiving, and a peaceful and beautiful holiday season.

Susan

On June 3, 2020, Susan presented a one-hour webinar for the Opal Group.

Click HERE to view Susan’s views on How wealthy families raise their kids.

On June 3, 2020, Susan presented a one-hour webinar for the Opal Group.

Click HERE to view Susan discuss the 3 Jar Theory for giving your children an allowance.