Navigating Sibling Rivalry Through Succession Planning.

We’ve all seen movies where a person of means passes away, leaving their loved ones to wonder what, if anything, they will inherit. There is the nail-biting reading of the will scene, where one child is shocked to learn they have been disinherited “for reasons known to them,” or offspring no one knew about shows up to claim control of the company and the lion’s share of the estate. A battle ensues, pitting sibling against sibling and ending in estrangement and, inevitably, a mountain of legal fees. While this may seem like the stuff of Hollywood drama, the truth is that even the closest real-life families have been torn apart by money. Here are some factors that may cause problems among your heirs and ways you can avoid them with succession planning. Transparency, transparency, transparency.  The first step is…

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Communication across generations.

You pride yourself on being a great communicator. You can present to any board of directors, woo diverse clients and raise funds for your favorite charities without breaking a sweat. The same feels true when it comes to your children. You’ve bonded during vacations and over their academic triumphs (and failures); you’ve encouraged them to come to you with any problem so you can sort it out together. Yet, when it comes time to talking about your wealth – specifically, what will happen when they inherit it – you may find yourself tongue-tied. Maybe you were raised that talking about money is inappropriate; maybe you don’t want your kids to overly rely on your wealth or let it define them. Whatever the case, current events have reminded us that the time for procrastination is over. Here are some simple…

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Through succession planning, you can ensure the survival of your wealth how you invision to best serve the next generation.

Many were shocked when Gloria Vanderbilt passed away in June of 2019 – not because of her death (the fashion icon and socialite was ninety-five years old), but because she had not left a trust fund for her son, CNN news anchor Anderson Cooper. Of course we’ve heard this before, the most famous example being Warren Buffett, who has stated that his succession plan, is to give away the bulk of his $77 billion fortune rather than willing it to his kids. For most people, the idea of disinheriting one’s children borders on cruelty. For some of the wealthiest, however, it is the ultimate act of love. They worry that kids who inherit fortunes tend to lack the drive, initiative and perseverance needed to succeed on their own. Gloria Vanderbilt was an exception – she inherited $5 million dollars…

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