Who is Ready for their Inheritance?

If you have young kids, and you are wealthy, are your children wealthy? What about your grandchildren, are they wealthy? When I ask these questions to clients, they inevitable pause. I can almost see the wheels spinning in their heads as they consider the money paradigm  existing in their lives.

 

I often hear how they want their kids and grandkids to understand the value of thrift, to see and appreciate how hard it once was, not take money for granted, and yet also give their children and/or grandchildren opportunities and advantages available to them. But how can your progeny learn about life’s hardships when they have private tutors, unique vacations, and financial ignorance?

 

Money is not often discussed in families with wealth. The Wilmington Trust, in a poll they conducted,  found that sixty seven percent of respondents said they were uncomfortable talking about eventual inheritances and only ten percent provided complete information to their heirs.

 

Concerned that they might thwart motivation, self-worth, and confidence, wealth holders often will askew conversations about money. Hope, intuition, seat of pants guidance are common methodologies, but they are not recipes for success. Trusts and timelines are common tools to allocate money to next generations but neither of these prepare the inheritors from being ready to receive the money. Let me repeat that: neither of these prepare the inheritors from being ready to receive the money. Maybe it’s time to change that paradigm .

 

Prepare your family for their inheritance. Mentor them to become stewards of that which you worked hard and proudly to accumulate.  Ask them what money means to them. Ask them what they would do with money. Give them a small amount of money to see how they handle it. Let them make mistakes while mentoring them towards stewardship.

 

This is such an important topic, rather than avoid or delay talking about money, use the tools that allow you to create an environment of healthy money conversations and stewardship.   Contact me if you want to learn how to talk about money.

 

Money can become just another conversation. But you need to create that environment so when asked: “Who is Ready for their inheritance?” your children and grandchildren can say: “We are. We are stewards to a legacy. And we are ready in our roles and responsibilities to steward our inheritance.”

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The Family with a Mission Sets a Cornerstone of Longevity

When I ask people about experiences they have had with the transition of wealth in their families, often, I get a shake of the head followed by a story of at least one person or one family branch creating an issue with the terms of distribution. This is still astounding to me, twenty years plus of asking this question.

Why, today, in our “enlightened states”, where information and coaches are ever present, do we fall into patterns that have been around for centuries? Why do we have to say: “My family is different” or “They get along. They’ll figure it out” only to find our families are right in the mix of fallen, disrupted, and broken families? I really do not get it.

What are we so afraid of uncovering that we would rather avoid, deny or hide it than seek to overcome it?

Many people think that merely preparing the assets for their eventual distribution is the answer to passing on an estate successfully. But those of you who have experienced, or, know of a family where distrust or antipathy, cloaked in polite communication, know a great mistake left  irreparable consequences.  Families are torn apart when instead they could have learned how to stay connected.

Becoming a legacy family means preparing the beneficiaries, your family members, to receive the assets. It means understanding the purpose of the wealth and the purpose of the family so the two can co-exist with agreement, understanding, and with stewardship that passes on what it has received and cultivated to the next generation.  Becoming a legacy family means looking at each other, understanding what you want to accomplish together and finding that place of agreement through shared values and inclusivity. Legacy derives from the word legate or mission. When a family has a mission, it sets a cornerstone of longevity.

I will stop here to give you an opportunity to soak in the essence of what has been conveyed here.

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Photo by Pixabay on Pexels.com

What This Mom Said When Asked Where Squirtle Was

Recently, I went out to a local park which housed a lake, that serves a spot  to heron, beavers, ducks, birds, and turtles. While I was there, the turtle count was 49 on just one log, nestled in the reeds. As I was looking at the turtles from my viewpoint on an extended pier, I head a child ask their parent: “Where is the Squirtle?”

I had to listen to Mom’s response. Her child was sincere in the question and worried that the Squirtle might not at the lake.

There was a slight hesitation as Mom carefully considered her response. She finally replied: “Here, Squirtles are found in their separate characters. Over there is the turtle. See its hard shell. Let’s watch what it does and consider why it does why it does, before we look for the Squirrel, the other part of the Squirtle.”

The child accepted the response and the challenge imbedded in it. Instead of joining the others who knew what was occurring on their phone and tablet screens as they crept through the park, this child began exploring and interacting with the world around her.

It was an incredible contrast in style.

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Wisdom from the Ages Can Be Accessed from this One Tip

I recently read a recommended book. The author, Benjamin Franklin (1706-1790) wrote an autobiography, which was published posthumously in 1868. I would like to share a point that resonates with me and is as relevant today as it was for him, two hundred plus years ago.

To give you a little background, Franklin believed strongly in the attributes virtues had He went so far as to define the thirteen core virtues which were cornerstones to his life.  He defined what each meant to him, and this is insightful,  because he understood that each person defined virtues, individually. His definition was not necessarily theirs and vice versa.

Rather than focus on all thirteen virtues, he isolated one at a time. He started with temperance which he described as: “eat not to dullness, drink not to elevation” and focused on it for a week. He then moved on to the next, which for him, was silence, defined for him as: “speak not but what may benefit others or yourself; avoid trifling conversation”, the next week he focused on order “let all things have their places; resolution “resolve to perform what you ought, perform without fail what you resolve” and so on.

As he focused on only one virtue per week, he could gain greater understanding of it for himself and its valuable application in his life. As the years went by he became dedicated and pronounced with his virtues, refining them in his daily life.   This contributed to the respect he garnished. He took the time to live from his “virtues”, intimately.

Each day he would begin by asking himself: “What good shall I do this day.” In the evening, he would reflect on his morning question by asking: “What good have I done to-day?” using one of the thirteen virtues he was focusing on.

Now, that is Wisdom from the ages.

Oops, I Made a Mistake

Whether you are 15, 115, or somewhere in between, the life you are building is the life you will leave for others to remember you by.

I thought about this yesterday after I was adamant on making a point instead of understanding another’s point of view. When my perspective was called out, I paused to reflect on my conduct. In this particular situation, I realized that I was focusing on the wrong thing.  I was so focused on the point I wanted to make that I was not listening to the other person’s point.

I was embarrassed because it is important for me to live by the values I hold so dear and understanding is one of my top values.

But the reminder that I was insisting on my point, rather than considering the other’s point, was important to hear. After all, if I do not have the aptitude to give space for someone else’s point of view, I am living in a world of potential isolation, unnecessary conflict and separation.

Allowing someone else’s point of view does not mean I have to give mine up or that I have to agree with theirs. It merely means I am letting them be in their thoughts and feelings as I am in mine.

Listen for It, Listen to It, It’s There to Help

Have you ever found yourself in a situation where you have witnessed your own behaviors in action?

Here is an example: You are in your car, driving down the highway, it’s twilight, with the sun just about out of sight. But it’s not quite night. Others in their cars, like you, are heading home, perhaps distracted, already thinking about dinner, to dos, tv shows, and home conversations.

You turn your signal in to indicate your intention to move from the left the middle lane. You look to see if anyone from the far-right lane is indicating they are going to turn to the middle lane. All clear.

Then that voice, one you have heard inside your head before, reaches out and tells you not to go into the middle lane, that far-right lane car is going to move into the middle lane.  You stay where you are and sure enough, THAT car moves into the middle lane about which you had signaled your intention. And they moved over without any signal, nothing. But you knew. Good thing you listened to THAT voice. It may have saved you a trip to the hospital.

How do you recognize THAT voice? It’s a protective, sagacious, and valuable voice. Researchers at the University of Toronto, Scarborough, conducted a study where participants repeated a word over and over as they performed a test: push the button when a certain symbol flashes on the screen. As this symbol flashed on the screen frequently, it could set off and did set off impulsive responses. The researchers found that when participants could not listen to their own inner “talk”, they were more likely to act more impulsively.  The researchers said this about the study: “Without being able to verbalize messages to themselves, they were not able to exercise the same amount of self-control as when they could themselves through the process.”

Listen for it, listen to it…your inner voice. It’s there to help.

Stress Can Wreak Havoc in Your Life

When you face danger, your body’s alarm system stimulates the production of adrenaline and cortisol. This is “stress.” This feeling of stress can be valuable as the adrenaline gets your heart beating faster and the cortisol produces glucose to help you react both mentally and physically. Once the danger is over, the adrenaline and cortisol rushes stop.

Unfortunately, that is not the only time when stress manifests itself. You can also experience stress whenever something bothers you or throws your world out of balance. Whether it’s from money or work issues, relationship or communication tensions, or something else that’s bothering you, when stress lingers, adrenaline and cortisol continue to pump through the body.  This isn’t productive.

If you cannot turn off your body’s alarm system you can find yourself eating more, exercising less, sleeping less, becoming forgetful about where you put things, more argumentative and impatient, more irrational, with increased abdominal fat, blood sugar imbalances and more.  You react to these hormonal releases with a faster beating heart which can result in higher blood pressure and increased cholesterol.

Stress itself is a constant in life and it is necessary: it helps you overcome dangerous/annoying situations. But, prolonged stress is toxic to your body and this is what you should avoid/manage. With the proper tools and systems in place you can protect yourself from its deleterious effects. Exercise, healthy food habits, laughing, and focusing on your strengths and values are key components to maintaining wellbeing.

Live with your core strengths and values at the forefront of your life.  They matter.

The Hero’s Story is Significant

 

Over the holidays, I attended the annual Seattle Business Magazine’s Family Business Awards Dinner. It was a fantastic event, honoring family businesses who deserve recognition in categories such as: Best Practices, Community Involvement and Family Business of the Year.

During the dinner, Chris Schiller, Managing Director of Cascadia Capital, gave a compelling introduction to the Family Business of the Year award.

I would like to quote Chris, as I thought his words were applicable to those of us who ork in guiding and consulting with family businesses and/or their families.

Chris began his talk by saying: “In thinking about tonight’s wonderful celebration of family business, it struck me that the eminent mythologist, writer and lecturer, Joseph Campbell’s Hero’s Journey, is much like the story of family business. All of the family businesses in this room have followed a similar path to Joseph Campbell’s hero, with you or one of your family taking the risk to start a company, then embarking on the journey of building your business, meeting tremendous challenges and personal struggles on the journey, finding various mentors (maybe including the family business advisors in this room) to help you overcome those challenges, and then crossing over into a period of transformation that leads to your ultimate success as a business and a family.

For all of you family businesses in this room, you likely have not arrived yet… rather your story continues to grow with your current generation and the next generation coming up. Often the journey is more important than the destination, as they say.

As investment bankers, my Cascadia colleagues and I live in a world of left brain… financial statements, revenue and EBITDA, numbers. Often the value of a business is ascribed largely to these numbers. However, what I have learned and what drives us, rather, is the stories of our family business clients. We are able to exercise our right brain to tell our client’s story to the market in a way that we find the optimal partner that embraces that story, and thereby sees value that others do not see in just the numbers. These stories are really what drives our passion for working with family business. “

These words were inspiring for me. Thank you, Chris, for speaking them and then letting me share them here. The story of the business is so important for families who continue their businesses across generations.

I Made a Startling Observation about Leadership

I recently noted something I want to talk about. A little while ago I attended a “town hall” meeting of a group to which I have been a member and one-time leader for well over a decade. At this meeting of about 200 people, I experienced a phenomenon that may have always been there. Let me explain.

There are members who feel comfortable in criticizing the leadership, the direction and other parts of the organization. They are vocal in their criticism, sometimes sparking controversy and sometimes adding fuel to fires already lit. But, often, something changes within them, that they do not see, when they become titled leaders of the overarching organization of the group.

Suddenly, as if a switch has been activated within them, their criticism transforms into a call for peace and understanding, for tolerance and respect. Those who criticized now call for an end to “negativity”, the negativity they had sparked or fueled, themselves, at one time.

Until recently I had not noticed anything askew about this change. But, for some reason, I now focused my attention on a question. I asked myself: “Why, as leaders, do we shut down criticism, when as followers we initiate or support criticism?” As leaders we tend to seek harmony and while as followers we tend to seek a voice. But so often, neither listens to the other. Each merely wants to shut the other down.

I find it interesting that we cannot look at both criticism and the role of “leadership” as being two sides of the same coin. Neither are inherently “better.” Neither are inherently “right.” I believe voices want to convey something even if their expression, or the words themselves, seem divisive. Leaders are not necessarily parents or moral authorities but can think they are, because they have been given implicit responsibilities or titles.

How do you view criticism? Do you try to shut it down? Do you tolerate it? Do you know how to speak to it, so it feels heard, while still maintaining your center? How do you view leadership? Does it have an implicit authority that overrules a “voice?” How do you build a bridge to listening and collaboration when criticism and harmony live together?

 

Finding My Way Back to My Core… I’m Ready

There are unexpected and unwelcomed times when I find that I am “off.” What do I mean by “being off?” It is those times that I feel off balanced, feel like I am reactionary rather than thoughtful and somehow, for some unexplained (to me) reason, cannot get back to my center, my core. I find myself mucking around in emotional states and unable to get out of them.

I try to trick myself by putting myself into another emotional state but that doesn’t bring me back to my center. It merely creates more gunk. It is so weird. Eventually, I remember what I must do. I have to say, when I first discovered this, twenty plus years ago, I was stunned by its power. I return to what is at the center of my being, my values.

Values represent the core of who we are. They represent our essence and when we lose sight of, forget or deny our core, we lose our focus. When we are adrift from our center, we take on different characteristics and find ourselves in the world of emotions with their endless judgments, pushes and pulls a circus-like universe of joy, disappointment, criticism, comparison, etc. None of it forwards the core of who we are.

I have been swimming in my emotions for the past few weeks, and only now, by writing this, am I realizing that I have abandoned the guidance my values provide and the compass they are in my life. Okay, I am ready, wisdom, go ahead, rule!

Share with me how your values lead you in your life, how you recognize when you have deviated from them, and how returning to them brings you back to the center of who you are.