5. But I Don’t Want Them to Be Unmotivated
Almost one-quarter of business owners (23%) are concerned about demotivating their family members by providing more information about their assets and planning.
First, remember that a lot of financial information is available publicly. The internet is full of personal financial information for inquiring minds to access. For business-owning families, there might be information available about the value of the business or its economic impact on the community. Sharing information is more likely to correct false assumptions rather than provide beneficiaries with the feeling that they will receive an unexpected windfall.
Second, motivation comes from multiple sources, and the cause of long-term motivation to work and achieve is often derived from an alignment between one’s goals and values. It is easier for someone to stay motivated if they can understand why their actions matter and see how their activities align with how they view themselves in the world.
In other words, communicating about the family wealth and planning might run the risk of demotivating children or grandchildren if they feel like nothing they do matters. In her book “A Wealth of Possibilities,” BBH Senior Advisor Ellen Perry discusses “shrinking the big shadow” of family wealth, legacy, and success.
When a family runs a successful business, it often casts a big shadow that can subsume the aspirations, dreams, and interests of the next generation, as they might be seen as stewards of the family’s business, philanthropy, and legacy.
In these conversations about carefully considered plans, it is important to respect children and other next generation members not only as recipients of information and perhaps wealth, but also as independent beings who have a responsibility to reach their own full potential.
Conclusion: Good Communication Enables Successful Estate Planning
Discussing your estate plan with family members can be daunting; however, these strategies can help business owners and their families overcome these communication barriers. Knowing the underlying values of your plan and business, the limits of what you’re ready to discuss, and how and when to initiate the different stages of conversations is essential. Communication about wealth, planning, and values will help your family build a foundation of trust and cooperation, which will foster family harmony for years to come.
If you are interested in learning more about estate planning and communication strategies, reach out to a BBH relationship manager or wealth planner.
