What matters most in managing the family enterprise
Complete Family Wealth is a comprehensive resource for growing, maintaining, and managing wealth across generations. A successor to the classic Family Wealth, now in its 20th year, this book provides updated and expanded guidance to change the way you think about your wealth and legacy. This team of expert authors - who brought the field not only Family Wealth but also Family the Compact, The Cycle of the Gift, The Voice of the Rising Generation, and Family Trusts - ground Complete Family Wealth in a clear account of the “five capitals”: human, intellectual, social, spiritual, and financial. The discussion covers the “what,” “who,” and “how” of family wealth management in clearly-delineated chapters that allow you to dip in as needed, from the principles of family enterprise to family governance, philanthropy, and more. Each family member plays a distinct role, and by exploring each member’s responsibilities in terms of the family enterprise, this book provides insights and ideas for real-world families struggling with all-too-common challenges.
Growth-oriented practices today lead to generations of family flourishing in the future. This book provides the answers you need along with guidance and strategy for keeping your family’s complete wealth intact.
- Understand the five forms of capital that comprise “complete family wealth”
- Explore the roles of each family member in helping the family enterprise flourish
- Learn how friends, trustees, and advisors contribute to family wealth management
- Adopt specific practices that help families grow their complete wealth and ensure its survival through generations
Family wealth can sometimes feel like more of a burden than a blessing. Developing the right understanding, character, and structures can improve family enterprise management and protect all your family’s capital from whatever the world throws your way. Complete Family Wealth is a one-stop reference for ensuring a positive legacy for future generations.
Table of Contents
Preface xv
Introduction An Invitation 1
A Welcome from James (Jay) Hughes, Esq. 1
A Welcome from Dr. Susan Massenzio 3
A Welcome from Dr. Keith Whitaker 4
The Path Ahead 5
Part One
Chapter 1 Complete Wealth 9
Right Understanding 9
Complete Wealth 10
The Five Types of Capital 11
Growing Capital 12
A Provocative Comparison 16
Measuring Qualitative Capital 16
The Family Balance SheetTM 18
Chapter 2 Family Enterprise 23
Affinity 23
Flourishing 24
The Three-Circle Model 26
Active Ownership 30
Transition 31
Time 33
Chapter 3 Principles 35
Part Two
Chapter 4 The Rising Generation 39
Why Rising? 39
The Effects of the Black Hole 40
The Challenge 41
Meeting the Challenge 44
Rising in the Middle Passage 46
Setting Off 47
Chapter 5 Parents 49
Giving 49
Know Thyself 50
Nothing Too Much 51
How Much is Enough? Fair versus Equal? 52
Communication and Control 52
Giving as Grandparents 54
Letting Go 55
Chapter 6 Spouses 57
Tough Questions 57
Fiscal Inequality 57
Three-Step Process 59
Spouses and Family Meetings 61
Blended Families 62
Chapter 7 Elders 63
“Old Age Hath Yet Its Honor and Its Toil” 63
Characteristics 64
Two Practices 65
Chapter 8 Trustees and Beneficiaries 69
Human Consequences 69
Vocabulary 70
Activity 74
Distributions 77
Conclusion 81
Chapter 9 Advisers 83
Questions to Consider 83
Money 84
Personnes de Confiance 85
Counselors, Coaches, and Facilitators 86
Mentors 87
A Father’s Wisdom 87
Chapter 10 Friends 89
Friends as Wealth 89
Wealth and Friends 91
Part Three
Chapter 11 Character 95
History 95
What Works 97
Chapter 12 Work 99
Meaning 99
Strengths and Flow 100
The Human Work 101
Play 102
Chapter 13 Talking with Children about Wealth 105
Development 105
The Power of the Teachable Moment 106
Are We Rich? 106
Curiosity 107
Allowances 107
Adolescents 108
Managing Privacy 110
Chapter 14 Prenuptial Agreements 111
Introduction 111
What is a Prenuptial Agreement? 112
How Best to Approach a Prenuptial Agreement 114
For Parents of the Prospective Spouses 115
Chapter 15 The Family Executive Summary 117
Definition 117
Purpose 118
Process 118
Presentation and Next Steps 119
Chapter 16 Family Meetings 121
Preparation 121
Why? 122
What to Do in a Family Meeting? 123
Who to Have at a Family Meeting? 124
When to Hold a Family Meeting? 125
How to Run an Effective Family Meeting? 126
Where to Hold the Meeting? 127
Chapter 17 Family Stories and Rituals 131
The Stuff of Life 131
Rituals 133
Chapter 18 Family Mission Statements 137
Why a Family Mission Statement Matters 137
What is a Family Mission Statement? 138
How to Create a Family Mission Statement 139
How to Use a Family Mission Statement 140
Chapter 19 Family Governance 143
Humility and Freedom 143
Constitution, Council, and Assembly 144
Design 147
Ratification 148
Chapter 20 Financial Capital 151
Return 151
Two Practices 153
Chapter 21 Family Philanthropy 159
The Benefits of Family Philanthropy 159
Philanthropy for the Family 160
Getting Started 161
Magnificence 162
Conclusion Individual Flourishing 165
Many Blossoms 165
The Five Ls 166
The Four Cs 167
Three Little Words 168
Epilogue The Future? 171
About the Authors 175
Index 177
