Transfer Of Wealth

One hopes by now that you have created wealth or know how to do so. So you want to make sure that when you go, it goes to the right people and causes, because it really is true: You can't take it with you. As the joke goes – one guy at a very rich man's funeral leans over and asks his friend "how much did he leave?" The other answered "All of it." There are two idea about having money – use it all before you die and come sliding up to the grave with a martini in one hand and a banana split in the other, or live well, but simply, and actually leave something of worth. There are many stories of people living very simply, sometimes seemingly in poverty, only to find out when they die that they had millions, all left to some cause they cared for. Then there are those that look rich, but are in such debt that their "inheritors" owe everyone. The amazing thing is that few families talk about this. The elders feel that they don't want to upset the children and the children don't want to appear greedy. But a study showed that children want to know their parent directives about what they want done when they die, and what the children care most about when parents die are their values and life lessons, and the little sentimental items around the house that remind them of family and love. Only last do they care about the money. Really, if you think of a rich relative (if you have one, if not think of a favorite relative and pretend they are rich), is the first thing you think about their money or how they treat you and care for you and what you learned from them?

Once you have money, it is imperative that you get the support you need to create the proper documents for its dispersal. These may include an estate lawyer or planner, insurance agents, and your financial planner. The difficulty is that no matter how well you do the documents, the likelihood is that your heirs will fail to keep it. Further, many families are blown apart by even a small inheritance and relatives may not speak for decades after. All of us know someone deeply affected by an inheritance. Sudden money can throw people when they are not ready for it, and most aren't. I had a dear friend who inherited a great deal. She never told me how much, but it felt like well over a million. She felt deeply responsible to "something good" with it. I lost track of her when she went overseas and asked not to be contacted, to consider her "lost to us." This is deeply sad. Others get money, only to fritter it away. Look at lottery winners. Most are worse off at the end than they were before. Is there a better way?

I found there is. The Heritage Institute (THI) was created by two estate planning attorneys, Rod Zeeb and Perry Cochell. They were two of the best in the country, but after 20 years of creating sophisticated tax-favorable estate plans, they realized that traditional planning was not working. They saw firsthand that 65% of families lost their inheritance by the end of the second generation, and 90% of families lost it all by the third generation. Often times, the families had perfectly sound estate plans and brilliant financial advisors. So what went wrong? Simply put, people were focused on the future of their money, not the future of their family.

Over 20 years ago, Rod and Perry began developing a process that intentionally implements the practices of those 10% of families who maintain their wealth and family success: communication, unity, preservation of values, and a cohesive vision for the future. The Heritage Process™ operates on the principle that it is the values, work ethic, traditions, faith, hopes, and dreams that contributed to a family's success that matter above and beyond the assets the family has accumulated. The focus is on values, not on valuables. When emphasis is placed on the clients' values and beliefs, the relationships within the family, as well as the bonds between family members and their advisors, are greatly solidified. In The Heritage Process ™, parents learn to pass the torch and transfer responsibility to their children through a series of "pre-inheritance" experiences. The family foundation is no longer a document; it is an ongoing, fully realized union of family members continuously working together to implement their collective vision. The clients' advisors, attorneys, financial planners, etc., are brought together to work collectively to ensure that the family's existing estate and financial plans are aligned with their core values and their vision. Families that engage in this process are much more likely to retain their wealth over time, as well as come much closer as a family. As one family put it, "We found something we didn't know we were looking for." The advisor working with them said "We took a perfect family and made them better." When death inevitably happens, the heirs can focus on their grief, not the money they might get.

I believe this revolutionary approach will become the cornerstone of all planning in the future. The benefits for the family are immeasurable. I am certified in this process and would love to work with any of you ready for this process. I can scale it to any income and net worth level.