Families face many issues that can pull them apart. Wealth can be a big contributor to this demise if not handled correctly. Some even choose to forgo giving to heirs in order to avoid contention. Others give to their children with strings attached, hoping to control how the money is used. The key to proper wealth transfer is through education and communication. Family meetings provide a platform to discuss, plan, and align the family’s goals.
Effective family meetings reveal meaning and bridge generational gaps, creating connection and unity.
A family meeting is different from a family reunion. Family reunions are for having fun together and creating stronger relationships.
Family meetings delve into the rich history, relationships, and shared values that form the core of a family’s identity.
Effective family meetings are not just about making decisions; they are about revealing meaning and bridging generational gaps.
Wealth and Values Meeting: This meeting focuses on understanding between generations. The elder generation should share stories that illustrate their history and how they developed their values. The younger generation can be asked to define their values. The shared values can be used to create a family values statement, mission, and vision. More than any other meeting, this can help bring families together because it creates unity.
Family Education & Enterprise Meeting: This meeting is centered on teaching and training the next generation. Topics may include investment principles or management of family businesses. One core principle to teach is that “wealth” is much more than just money. It is human and intellectual capital. Financial capital should only be used to improve human or intellectual capital.
Ownership and Inheritance Meeting: Dedicate this time to sharing information about assets, estate plans, and expectations. This meeting creates transparency within the family and sets policies for confidentiality outside the family. The focus should always be on the purpose of the assets and plans.
Conflict and Issue Resolution Meeting: When differences arise, this meeting should be held with the intent to constructively address issues, uphold family values, and prevent the disintegration of the relationships.
Each family must tailor the meetings to suit its unique characteristics and needs. Whether crafting a Values Statement during the Wealth & Values Meeting or utilizing educational development sessions for the Family Education & Enterprise Meeting, customization ensures the effectiveness of these gatherings.
Each meeting must be held with mutual respect, love, and a desire to work together. Many people need help to hold effective family meetings. A family advisor, whether a wealth manager or attorney, can contribute significantly to the success of these meetings by guiding discussions and addressing specific goals.
If used correctly, family wealth can increase family purpose and unity. Family meetings can be a powerful way to communicate and educate so that families learn and grow together as a cohesive unit.
