The holiday season is here, which we hope means spending more time with family and loved ones, strengthening the bonds that matter most.
Holidays also offer a time for reflection, which can create a constructive setting for families to gather and discuss values, ideas, goals and even challenges. For high-net-worth families, in particular, who are focused on generational wealth planning, having multiple generations together in a spirit-filled, relaxed and positive environment presents a unique opportunity to have an open dialogue about mission, charitable giving goals and other key elements of the family’s legacy.
While the holiday backdrop can set the right tone for these conversations, they are not always straightforward and easy to have. Thorny issues can come up, disagreements can happen. Many families understandably avoid conversations specifically for these reasons.
But I think families can have it both ways. You can carve out a small slice of time to have important, meaningful conversations about generational planning and legacy and leave all the remaining time for bonding and merriment. To make the most of the time you set aside for planning, it’s often a great idea to bring in outside help.
We advise many high-net-worth families, and most of them come to us for assistance in moderating and structuring legacy and mission conversations. An experienced advisor can help set an agenda, keep the conversation constructive and make note of any issues that come up in the discussions. If the issues do not require immediate action by year-end for tax or other purposes, then the family can revisit them later. The holidays are for having the dialogue, not resolving all the issues.
For families who are interested in having these types of conversations this holiday season, I’d recommend focusing on two specific areas of planning. First, discuss the importance of family values and mission, and then introduce philanthropy into the conversation.
Family values and mission can serve as the foundation of a strong and cohesive family unit. Articulating and reaffirming these values fosters unity and creates a shared sense of identity, which fits nicely with the spirit of the holidays.
When families take the time to discuss values openly, it provides clarity on what truly matters, enabling each member to align their actions with shared goals. For example, prioritizing respect, kindness or education as core values can serve as guideposts when family members across generations are making decisions about how to allocate resources.
Reaffirming family values also guides future generations by passing down a legacy of principles and traditions. For children and young adults, understanding the family’s core values offers a moral compass in an increasingly complex world. It provides consistency amid change and inspires them to carry forward the family’s ideals in their personal lives. This generational continuity can lead to deeper connections and a greater appreciation for the family’s history and purpose.
Merely discussing family values during the holidays can be a great accomplishment. But if it feels right to go a step further, families might consider codifying values into a family mission statement. Much like a mission statement for an organization, a well-crafted family mission statement outlines the collective vision, aspirations and principles that define the household. It acts as a reference point—reminding family members of their shared goals and values and helping to develop a sense of accountability and unity, ensuring that every decision reflects the family’s core purpose and vision for the future.
The second area of planning is philanthropy, which can be a feel-good topic that aligns with the holiday spirit of giving. For many families, philanthropy reinforces a sense of purpose and service by aligning the family’s resources with causes that reflect their values. It ensures wealth is not only managed effectively but also used to make a positive societal impact, which is often a cornerstone of a family’s legacy. Philanthropy also acts as a tool for educating younger generations about the importance of stewardship, social responsibility and financial literacy, creating a unified vision for the family’s future.
A great way to start a conversation about philanthropy is to share family stories highlighting the importance of giving back. Discussing existing charitable activities and brainstorming new opportunities can spark engagement and excitement, particularly for younger generations. Involving everyone in these conversations, especially during the holidays, can create a strong shared commitment to making a difference.
As mentioned earlier in this article, kickstarting these conversations can take some finesse—it’s not all candy canes and gingerbread houses. Using a family meeting format, creating an achievable agenda and/or having someone facilitate the conversation are all steps a family can take to keep the conversation focused, positive and productive. There is always the possibility that disagreements can arise and that generational views on values and money can differ. That’s okay. Families should encourage open communication and frame differences not as roadblocks, but as opportunities to further solidify the family mission.
From these conversations, families can move in the direction of transforming words into actions—developing a family mission statement, working with advisors on giving plans and strategies, setting up a family foundation and more.
IMPORTANT DISCLOSURES
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, information presented in this presentation is believed to be factual and up to date, but Newport Capital Group, LLC does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.
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