The second edition of this foundational work, Complete Family Wealth: Wealth as Well-Being provides proven tools and best practices for families of means to use in maturing, maintaining, and managing personal and legacy wealth long into the future. The book is divided into three parts: the "what" - what is meant by family, wealth, and enterprise; the "who" - the persons crucial to family enterprise flourishing; and the "how" - specific practices families can use to enhance and grow family wealth.
The second edition of this work places the health and well-being of the individual members of the family unit at the forefront of every aspect detailed within the book. A natural product of this focus is an increased awareness of the social complexities of wealth that have come to the fore in recent years, and the team of expert authors here address the responsibility of private wealth to the public good. In addition, Complete Family Wealth's second edition provides readers with: - A new chapter on "the big reveal," suggesting ways to encourage positive, life-affirming reception of the revelation of present or future wealth - An additional chapter on preserving the beloved family vacation home - Two new appendices: "Fiduciary Course Curriculum," dedicated to enhancing the education of trustees and beneficiaries; and "Key Practices for Families During Challenging Times," a response to the pandemic but relevant to all trying periods for families - Examples that make these practices accessible to a broad audience across the wealth spectrum.
Having shaped the language used by families and their advisors with the first edition, Complete Family Wealth's second edition is essential reading for families of high net worth and their financial advisors. It will also be of interest to family offices, fund managers, as well as private investors.
Table of Contents
Preface to the Second Edition xv
Preface to the First Edition xvii
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 6
Part One
Chapter 1 Complete Wealth 9
Right Understanding 9
Complete Wealth 10
The Five Types of Qualitative Capital 11
Growing Capital 13
A Provocative Comparison 16
Measuring Qualitative Capital 17
Chapter 2 Family Enterprise 19
Affinity 19
Flourishing 20
The Three-Circle
Model 22
Active Ownership 25
x Contents
Transition 28
Time 30
Chapter 3 Principles 33
Part Two
Chapter 4 The Rising Generation 37
Why Rising? 37
The Effects of the Black Hole 38
The Challenge 40
Meeting the Challenge 42
Rising in the Middle Passage 45
Setting Off 45
Chapter 5 The Big Reveal 47
Confirmation 47
What’s Next? 49
The Pause 50
Courage 53
Chapter 6 Parents 55
Giving 55
Know Thyself 56
Nothing Too Much 57
How Much Is Enough? Fair versus Equal? 58
Communication and Control 58
Giving as Grandparents 60
Letting Go 62
Chapter 7 Spouses 63
Tough Questions 63
Fiscal Difference 63
The Three-Step Process 65
Spouses and Family Meetings 67
Blended Families 68
Chapter 8 Elders 69
“Old Age Hath Yet Its Honor and Its Toil” 69
Characteristics 70
Two Practices 72
Chapter 9 Trustees and Beneficiaries 75
Human Consequences 75
Vocabulary 76
Activity 80
Distributions 83
Conclusion 87
Chapter 10 Advisers 89
Questions to Consider 89
Money 90
Personnes de Confiance 91
Counselors, Coaches, and Facilitators 92
Mentors 93
A Father’s Wisdom 94
Chapter 11 Friends 95
Friends as Wealth 95
Wealth and Friends 97
Part Three
Chapter 12 Character 101
History 101
What Works 103
Chapter 13 Work 105
Meaning 105
Strengths and Flow 106
The Human Work 107
Play 108
Chapter 14 Talking with Children about Wealth 111
Development 111
The Power of the Teachable Moment 112
Are We Rich? 112
Curiosity 113
Allowances 113
Adolescents 114
Managing Privacy 116
Chapter 15 Prenuptial Agreements 117
Introduction 117
What Is a Prenuptial Agreement? 118
How Best to Approach a Prenuptial Agreement 120
For Parents of the Prospective Spouses 121
Chapter 16 Getting Started 123
Questions 123
Questions for Reflection 124
Practices 124
Chapter 17 Family Meetings 127
Preparation 127
Why? 128
What to Do in a Family Meeting? 129
Who to Have at a Family Meeting? 130
When to Hold a Family Meeting? 131
How to Run an Effective Family Meeting? 132
Where to Hold the Meeting? 133
Chapter 18 Family Stories and Rituals 137
The Stuff of Life 137
Rituals 139
Chapter 19 Family Mission Statements 143
Why a Family Mission Statement Matters 143
What Is a Family Mission Statement? 144
How to Create a Family Mission Statement 145
How to Use a Family Mission Statement 146
Chapter 20 Family Governance 149
Humility and Freedom 149
Constitution, Council, and Assembly 150
Design 153
Ratification 154
Chapter 21 Financial Capital 157
Return 157
Two Practices 159
Chapter 22 Preserving a Family Vacation Home 165
Hard Questions 165
Family Culture as the Solution 166
Facing Realities 167
Chapter 23 Family Philanthropy 169
The Benefits of Family Philanthropy 169
Philanthropy for the Family 170
Getting Started 171
Magnificence 173
Conclusion
Individual Flourishing 175
Many Blossoms 175
The Five Ls 176
The Four Cs 177
Three Little Words 178
Epilogue
The Future? 181
Evolutions in Human Development 181
Changes in Family Structure 182
New Understandings of Family Wealth 182
China 183
Appendix One: Fiduciary Course Curriculum 185
Appendix Two: Key Practices for Families During
Challenging Times 195
About the Authors 201
Index 203
