Firm Philosophy
Planning Foundation 

 "No legacy is as rich as honesty." - William Shakespeare.

You, the wealth owner, are the only one competent to define the desired result. Most clients, in establishing the goals and objectives for the use and transfer of their wealth, set the following order of priorities: self, spouse, heirs, and community. For example:

Self. Frequently, an owner's most important planning objective is to achieve and maintain financial independence for life. Most clients, however, do not know how much they will need to accumulate and preserve in order to maintain their desired lifestyle. So they grasp their wealth tightly, until "death do us part." Thus, "What do you need from your wealth to sustain you and your style of living for the rest of your life?" becomes a primary planning issue.

Next, for many today, net worth has become a major component of their self worth. Money may bear social standing and prestige, as well as privileges. As a result, even the most thoughtful and caring individuals may experience difficulty in letting go of resources. Others may hold firm to the Golden Rule (as amended): "He or she who holds the gold, rules!" They then fear a loss of familial power if this grasp is loosened. Therefore, the psychological impact of wealth, "What does money mean to you?", must be addressed.

Spouse. Although the objective here is typically the same as for yourself - maintenance of the desired lifestyle - complications frequently arise. The wealth owner must consider the ability of his or her spouse to support him- or herself as well as his or her ability to manage money and other assets, perhaps even a family business. Other questions may include how you feel about a possible re-marriage by your spouse after your demise? Are there children from a prior marriage to whom you wish to ultimately give your property, while still providing for your spouse during his or her lifetime?

Heirs. Although this may also look upwards to include parents, typically, when one thinks of "heirs" this means children first, then down to grandchildren. Again, the wealth owner must make his or her own judgment as to his or her heirs' individual competencies, their ability to support themselves and to manage money and family assets. This is a function not only in terms of their present situation (age, maturity, health and wealth), but in what they can become. What family issues, open or closeted, need to be addressed? How do your heirs function as a family? How can you preserve their financial security, from creditors as well as in the context of divorce? Will they be left unmotivated and unproductive by "Sudden Unearned Wealth Syndrome"? Are there certain values dear to you that you wish to further instill in them? Is there behavior which you wish to reward, or punish? What hopes and aspirations do you hold for your heirs, and how can you help them to succeed? Have you thought of what you want your family legacy to be?

Community. There is a common misperception that your wealth is entirely yours. In fact, your wealth is divided into two distinct categories: personal capital (yours and yours alone) and social capital (society's claim on your wealth). Although you may now have temporary control over your social capital, that portion must be allocated to provide benefits to the general welfare of this country, at least under existing tax laws. The question then becomes, do you wish to self-direct your social capital through charitable contributions, or do you want the government to do so as a result of your paying taxes? Are there institutions, perhaps your alma mater, which you wish to share in your success? Do you have any particular interests in, or current ties to, your community's charitable organizations? Have you considered your contribution towards making the world a better place?

It is only after this deliberate, introspective and intimate contemplation of yourself, your spouse, your heirs and your community, that a Family Wealth Plan can be shaped by your team of advisors - attorney, accountant, investment advisor, valuation specialist, trust officer, etc. - to meet your goals. Frequently glossed over in the rush to "Minimize Taxes!", your emotional understanding of your wealth, and your concerns, fears and aspirations for you and your beneficiaries, truly set the stage for your supporting wealth strategies and structures. And often, it is this first step, touching on the very meaning of your life, that is the most time consuming and difficult.