The Dilemmas of Family Wealth
Insights on Succession, Cohesion, and Legacy
Bloomberg
1. Edition February 2006
248 Pages, Hardcover
Wiley & Sons Ltd
Few families are able to pass along their wealth successfully to
the next generation. The barriers to keeping money in the family
are much more formidable than the barriers to making money in the
first place. Why should this be? What pitfalls are most common? How
can families and their advisers increase the odds of a successful
intergenerational transfer of wealth? How can they preserve the
family's human and intellectual capital?
Judy Martel, CFP®, provides insightful answers to these
questions and dozens more in this richly detailed book. The
Dilemmas of Family Wealth takes a fresh look at the
communications barriers, misunderstandings, and generational
conflicts that can pull families apart and scatter their wealth in
far less time than it took to build it. Martel identifies the
dilemmas that families are likely to face and offers wise counsel
for overcoming the challenges they pose. Her book includes advice
and perspectives from top experts in the field and frank
first-person experiences related by family members with whom they
have worked.
Introduction.
About the Contributors.
Part One: Transitions and Letting Go.
Introduction.
1 Succession and Letting Go of a
Business.
Dilemma: It's time to plan for succession, but I
don't
know how to let go of the business.
2 Keeping Future Generations
Connected.
Dilemma: I sold my business at the right time and have more than
enough to take care of my family, but I feel alone and
uncomfortable in my new position of wealth. What do I do with my
time, and how do I preserve a connection with the family wealth in
subsequent generations?
3 Future Wealth Generators.
Dilemma: As the family grows, the original fortune is not enough
to support everyone. How can I support and encourage future wealth
generators to add to the family coffers?
Part Two: Retaining Family Cohesiveness.
Introduction.
4 Keeping the Family Together.
Dilemma: I want the wealth to enhance our dreams, but
don't want it to be the only reason we stay together.
5 Integrating New Family Members.
Dilemma: As new members come into the clan through marriage, how
do I level the playing field if one partner is less wealthy, and
what value do certain structures like prenuptial agreements offer
me?
Part Three: Preparing Heirs.
Introduction.
6 Preparing Children and
Grandchildren.
Dilemma: I need to prepare my children and grandchildren for the
responsibility of wealth, but I'm afraid that if they know
too much, it will destroy any initiative to earn a living. How do I
communicate this concern?
7 Fairness in Estate Planning.
Dilemma: I plan to be fair to my children, but if I leave them
unequal amounts of money, am I setting up a future
battleground?
8 Strategic Philanthropy.
Dilemma: I want to give some of my wealth back to society, but
how can I do it without my children thinking I've given away
their inheritance, and in a manner that will reflect our values and
enhance the family legacy?
planning are weighed against The Dilemmas of Family Wealth,
many will elect to keep this book on the bedside table. Instead
of teaching how to calculate P/E ratios or ROI, these twenty-three
wise practitioners share their insights in ways that encourage
action--not calculations! Wealthy baby boomers, who have
been frustrated by so many other how-to books, should rush to
purchase this terrific compendium."
-- Charlotte B. Beyer
CEO, Institute for
Private Investors
"Most families aspire to use wealth purposefully and to raise
children as thoughtful stewards of their inheritance. But such
aspirations are often thwarted for lack of the kind of sound
guidance that Judy Martel offers in The Dilemmas of Family
Wealth. The value of this very effective book lies in the
stories that illuminate the complexity of wealth--and how to
deal with it in the context of the family system.
Martel's book is both specific and provocative. Families
would be wise to buy multiple copies and read the book together,
chapter by chapter!"
-- Joline Godfrey
CEO, Independent
Means Inc.
Author, Raising
Financially Fit Kids
"Wealthy baby boomers have many individual advisers, but they
desperately need some guidance on how to work together as a family
to create the best possible future for themselves and their
investments. This is a great guide to all facets of the personal
side of wealth planning."
-- Dennis Jaffe
Professor,
Saybrook Graduate School
Executive
Director, Family Enterprise Center
San Francisco
State University
The book's foreword is by James E. Hughes Jr., author of Family Wealth: Keeping It in the Family (Bloomberg Press). His foreword offers the perspective of a respected longtime family counselor and a preeminent expert in the field of family governance and wealth transfer.
