The Family Dynamics of Wealth

Strong Families Survive Tough Times.
The Times Are Upon Us, How’s Your Family?
The Effect of Covid-19 on the Family and

What You Can do About it?
We are Recording This Meeting.
Tom & Cathy Rogerson

GenLeg Company
Creating Generational Legacy.
Tom@GenLegCo.com
www.GenLegCo.com
617-688-2029
Client Study – Wealth
“SHIRTSLEEVES TO SHIRTSLEEVES?”
4th
1st 2nd 3rd+ Generation
Generation Generation Generation Lamentation
Creation Assimilation Enjoyment (Genealogy)
$
TIME
© GenLeg Co., Inc. 2019

THE DEFINITION OF “FAIL”
1) Financial wealth is gone. Enterprises, Structures & Assets

Financial security disappears – “Divide and Dissipate”
2) Family Identity and History forgotten or lost.

History diminished till gone. Who we were, are, and want to be.
“When a Grandparent dies, a Library burns down.”
3) Family Independence to the point of Estrangement.

To Know and to be Known? To Love and to be Loved? Not!
Disharmony & Resentment. Family Litigation is Thriving!
“Who’s in your cell phone contact list?” Cousins? 2nd? 3rd?
“What you did is your History. What you set in

motion in your family is your Family Legacy!”
Leonard Sweet-ish
Wealth in Families
DEFINITION
1.Human Capital – Me
2.Intellectual & Family Capital – We
3.Social Capital – World
4.Financial Capital – Wealth Wisdom
James E. Hughes Jr.

Wealth in Families
MISSION/VISION
1.Human Capital – Love of Self
2.Intellectual & Family Capital – Love of Family
3.Social Capital – Love of Others
4.Spiritual Capital – Love of God
5.Financial Capital* – Love of Creation
*The purpose of financial capital is to enhance human,

intellectual, social, and spiritual capital.
Wealth in Families
MISSION/VISION
1.Human Capital – Love of Self
2.Intellectual & Family Capital – Love of Family
3.Social Capital – Love of Others
4.Financial Capital* – Love of Creation
Spiritual Capital – Love of God

*The purpose of financial capital is to enhance human, intellectual,
and social, capital, all based on the family spiritual capital

“A House Divided Against Itself
Cannot Stand.”
- Abraham Lincoln and Luke 11:17

CONSIDER THE FOLLOWING DATA: 8
70 % Of all wealth transfers fail in one generation.
Of all multi-generational wealth transfers fail within three

97 %
generations. For Love and Money, Roy Williams
61
% Rate legacy development as a top financial need. Mindscape Study
Of families say it is important to leave values and life lessons as

86 %
inheritance. Morningstar
Of families say, “Our plan does not deal with our goals,
90 %
wants, and objectives!” David York
Of Heckerling attendees said “Family Conflict” was the

46 %
biggest threat to estate planning. “Not communicating the
plan” and “Blended family issues” were key. TD Wealth

“Happiness is having a large,
loving, caring, close-knit family
in another city.”
- George Burns

Risk Reality – “What Bit Me?”
WHY DO 90% FAIL?
60% of Failure is Due to a Lack of Communication and Trust

Within the Family Around Group Decision Making, Education
and Governance. Family Culture?
25% of Failure is Due to Unprepared Heirs. Family Culture?
10% of Failure is Due to No Clarity of Family Purpose and

Individual Place. Family Culture?
Less than 5% of Failure is Due to Failures in Financial

Planning, Taxes and Investments!
Source - Williams and Pressier

Risk Reality – “What Bit Me?”
WHY DO 90% FAIL?
60% of Failure is Due to a Lack of Communication and Trust

Within the Family Around Group Decision Making, Education
and Governance. Family Culture?
25% of Failure is Due to Unprepared Heirs. Family Culture?
10% of Failure is Due to No Clarity of Family Purpose and

Individual Place. Family Culture?
If this is the problem,

Why isn’t the focus on “Family Culture?”
Peter Drucker & Culture
“Culture Eats Strategy

For Breakfast!”
- Peter Drucker

“Education” What’s Going On With Families?
Independence vs. Interdependence

Interdependent to Independent to Dependent
Dependence
Most families try

Dependence
Entrepreneurial to stay up here

Kill Zone!!
Independence
Some Do Thrive!
$80,000/Yr.?
Entrepreneurial
Incubator!!
Interdependence
Low Wealth $ Medium Wealth $$ Extreme Wealth

Shared Assets
By Necessity

Entitled But Not Equipped? “The Epidemic of
Loneliness, Anxiety, Depression, Addiction, ...”
Dependence The O’Connor Ironwood

Group School
Most families try
Dependence
to stay up here
Independence
Some Do Thrive!
Guilt?
Embarrassment?
Entrepreneurial
Incubator!!
Interdependence

Shared Assets
By Necessity

Dependence
Most families try

Dependence
to stay up here
Tough Love?
Independence Most
Move Some Do Thrive!
Here
Entrepreneurial
Incubator!! Wealth doesn’t cause the
Interdependence family to separate, but wealth
allows and funds separation.

Shared Assets
By Necessity
Family Meeting?
Modern family get-

1
Independence vs. Interdependence 0
Dependence
Dependence
Independence
Independence
Entrepreneurial Family &

Incubator!! Entrepreneurial
Interdependence Mindset?
Spouses Usually Interdependence
Enter From The Left

Shared Assets Shared Assets
By Necessity By Assets, Structure and
Voluntarily with Understanding

Dependence
Healthy Zone

Shared Assets Shared Assets & Structure
By Necessity Voluntarily with Understanding
Families in the Bible, Old & New – Unity?
The Joy of Interdependence - "LITTLE TRAIN?"
Luke 15: 11-32 “The Prodigal?”

Who was the story about?
What was the pre-story?
Did they truly know each other?
Was there trust?
If there was, could it have been different?
Genesis 37:1-2 Joseph, the “Favorite?”

Same questions.
How did you come to faith? A Billy Graham Crusade? A TV evangelist?

Or was it an individual getting to know you? Sharing and caring with
you? Experiencing life together?
We learn by doing. We learn trust by doing together. How is it different in
families?
Quote to be Said to a Very Wealthy Person.
“You don’t have enough money

to give your children the
blessings of growing up poor.”
- Chinese Proverb


Dependence
Dependence
Independence
1
2
3 The 6 Steps to Healthy

4 Family Governance.
Interdependence
5
6

Shared Assets Shared Assets
By Necessity Voluntarily with Understanding

End of “The Declaration of Independence” - Thomas Jefferson
“… We mutually pledge each other our

Lives, our Fortunes and our sacred
Honor.”
Thomas Jefferson
Interdependence
(being part of something bigger)
brings Resilience, Grit and Freedom.
Connection Creates Interdependence and Resilience
“I’m not a river or a giant bird that soars

to the sea, and if I’m never tied to
anything, I’ll never be free!”
Pippin
To know and to be known.

To love and to be loved.
Does this bring “Resilience?”
23
“Hyper Individualism” “Hedonic Adaptation”
“Join a Community!” “Slow it down! Expose them to
what Normal looks like”
David Brooks
Sonja Lyubomirsky
“Family Meetings “Love, Forgiveness, Humility” “Preserve Donor Intent!”
3 in 30 yrs. vs. monthly”
”Faith Guides The Process!” “What Breaks Organizations Also
“The Monthlies Saved The 3!” Breaks Families!”
Amy Julia Becker.
Mart Green Green and Horst
Services to Families - The “Family Meeting”
To prepare future generations for the

assets and planning structures, the
Family Purpose needs to drive the
planning process, and the planning
process needs to support the Family
Purpose.
Drives
Creating Generational Legacy
“A cord of three strands is not easily broken.”
Family $$$ & Planning

Purpose Assets Process
Supports
- David York © GenLeg Co., Inc. 2019
Sustaining the Family by Preparing the Family for the Assets
What we usually see is the “Money and

Assets” drive the “Planning Process.”
And the “Planning Process” is designed
to support the “Money and Assets.”
Drives

$$$ & Planning
Assets Process
Family
Purpose?
Supports
Strong Families Survive Tough Times.
The Times Are Upon Us, How’s Your Family?
Build and Save Tangible AND INTANGIBLE Wealth

A Process To Affect Culture
The Six Step Process

GenLeg Company
Tom@GenLegCo.com
www.GenLegCo.com
617-688-2029
Six Steps to Healthy Family Governance
6. Advancement – An Endowed Continuum of Healthy Family Governance
5. Action – Practice Governance and Leadership:

Family Entrepreneurial Mindset, Family Philanthropy, Family Bank, …
4. Values - Intentional Experiential Exercises: “Words to Definitions to Stories”

Mission/Vision – History and Future – Team Building Experiences
3. Communication – Evaluation of Leadership Styles - Learning Safe

Transparent Communication and Style Shifting – Managing Triggers
2. Education - Family Education of Problems and Solutions – Context

“Lifelong Learning” Creating a Family Curriculum
1. Assessment - Setting the Foundation “Where are we now?”

Are we improving Over Time?
GenLeg Co., Inc. Mission Statement 3
0
Our Passion and Mission is to:

Intentionally introduce and
reintroduce a family to itself
repeatedly, with tools, activities and
metrics to measure success.
“To Educate, Motivate and Facilitate!”

30
The Solution
The Six Step Process Broken Down.
Step One – “Assessment”

GenLeg Company
Tom@GenLegCo.com
www.GenLegCo.com
617-688-2029
6. Advancement – Endowing Ongoing Healthy Family Governance

4. Values - Intentional Experiential Exercises:



“Life Long Learning” Creating a Family Curriculum
1. Assessment - Setting the Foundation “Where are you now?”

Are you improving Over Time?
32
1 – “Assessment”
Family
Governance
Assessment

Sample Family Assessment Results
Ranking GenLeg Sample Family Assessment Gap

1 We have identified the best role for each of our family members that 22
leverage their unique talents/gifts; I know their strengths and they
know mine.

2 We have a plan for a genuine transfer of leadership within the family (& 18
business’s if any).

3 We have developed a process for our family to make consequential 17
decisions together.

4 Our family has captured our story and life lessons for the benefit of 16
future generations.

4 We have created opportunities for our next generation to develop and 16
utilize collaborative skills.

4 Our family has concrete “next steps” to address the elements needed 16
to sustain our family’s wealth and unity.

7 We have a structure in place to keep our children, grandchildren and 15
great-grandchildren connected and unified.

8 Our family has a clear understanding of the causes and organizations 12
that we would like to support, and some of our gifts are made together.

Are you confident that you, your children or your grandchildren are prepared to Yes / No
manage, control and grow the inheritance they will receive? 1 10
If you answered no, would you like to prepare yourself or them with confidence? Yes / No
10 1
STEP 1: Assessment – The Family & Financial Assessment
• Family Assessment:
• Do you hold regular family meetings with full family participation?
• Have you completed a family governance assessment?
• Have you identified and discussed your individual and shared family values?
• Have you evaluated family communication styles and learned to style shift?
• Do you regularly include G2 and G3 in important family decisions?
• Do you avoid conflict, rather than practice and manage conflict?
• Financial Assessment:
• Have you completed a goals-based planning exercise for each family member?
• Do you know what your overall Family asset allocation is?
• Do you know how much risk you are taking in your investments?
• Do you know the combined performance of all your investments?
• Do you know the combined fees of all your investments?
• Do you know how your fees and performance compare with the market?
• Have you evaluated your estate plan since the major tax law changes in 2017?
• Have you reviewed the cost and performance of your insurance – both life
insurance and property and casualty insurance?
• Does the family understand the Family Enterprises, value of shares, expected
growth, roles required to run them, capabilities required for those roles, etc?
If your answer to any of these questions is NO,
you are leaving substantial opportunities on the table.
© GenLeg 2018
Date AGI AMT Y/N Gross $ Previous Spouse? Atty:
State Exp. NOL’s Flow
Net $ Flow CPA
Age Age
____________
Cash
Parents? Retirement %S__%B__%C__ Retirement %S__%B__%C__ Parents?
Stocks
Fin. Issues (+/-) ? Options Options Fin. Issues (+/-) ?
Bonds
Beny's? ___________ Real Estate Beny's? ___________
Cash Cash
Residence
Stocks Stocks
Pers. Prop.
Bonds Partnerships Bonds
Real Estate Bus.Int. Real Estate
Residence Residence
Pers. Prop.
Insurance & Beny?
Pers. Prop.
Insurance & Beny?
Goals –
Other Personal & Family
Partnerships Partnerships
Bus.Int. Bus.Int.
Total
Other Other
(Liabilities) (Liabilities)
Total Total
Tax Line -------------------------------------------------------------------

Existing Trust ILIT, Special Needs,?
Charity Issues?
Charitable Gifts?
Cash? Stock? ?
Children ?
Foundation / DAF
Opportunities?
+ ?
+ ?
Grand Children
Charities © GenLeg Co., Inc. 2019
Date AGI AMT Y/N Gross $ Previous Spouse? Atty:
State Exp. NOL’s Flow
Net $ Flow CPA
Parents? Age Age

____________ Parents?
Fin. Issues (+/-) ? Retirement %S__%B__%C__ Cash
Retirement %S__%B__%C__ Fin. Issues (+/-) ?
Stocks
Options Options
Bonds
Beny's? ___________ Real Estate Beny's? ___________
Cash Cash
Residence
Stocks Stocks
Pers. Prop.
Bonds Partnerships Bonds
Real Estate Bus.Int. Real Estate
Residence Residence
Pers. Prop. Pers. Prop.
Insurance & Beny? Insurance & Beny?
Other
Partnerships
Bus.Int.
Partnerships
Bus.Int.
Goals –
Charity Total Personal & Family
Other Other
Charitable Gifts? (Liabilities) Marital / QTIP (Liabilities)
Cash? Stock?
Total Total
Income GRAT, QPRT,…
Tax Line -------------------------------------------------------------------
Income?
Principal?
Exemption Trust / GST Exemption Trust / GST

Income Advancement Trust? Advancement Trusts? Issues?
Existing Trust ILIT, Special Needs,?
Family Bank? Family Bank?
CRT
?
Opportunities?
+ ?
Children
Foundation / DAF
+ ?
Risk Management /
Leverage Issues &
Opportunities ?
Grand Children
Charities Edu. Trusts? © GenLeg Co., Inc. 2019
To prepare future generations for the

assets and planning structures, the
Family Purpose needs to drive the
planning process, and the planning
process needs to support the Family
Purpose.
Drives
Family $$$ & Planning

Purpose Assets Process
Supports
- David York © GenLeg Co., Inc. 2019





39
Six Steps to Healthy Family Governance: Communication
George Bernard Shaw once said,
“The single biggest problem

with communication is the
illusion that it has taken place.”
How Do We Deal With Conflict?
Conflict
Avoidance Practice & Explosion
Management
Education & Motivation to
Drift Apart Until Practice and Manage Conflict.
Complete Coaching & Consulting. Mediation/Resolution.
Working Together.
Independence. Intentional Experiential Exercises.
Or A Fast Split.
Or An Explosion. “Little Train?”
Family Philanthropy?
Family & Entrepreneurial Mindset?
Interdependence!
Families Usually Jump From Left

to Right and Bypass the Middle
How Do We Deal With Conflict?
Conflict
Avoidance Practice & Explosion
Management
Mediation/Resolution.
Drift Apart Until Or A Fast Split.
Complete Education & Motivation to
Independence.
Or An Explosion. Practice and Manage Conflict.
Coaching & Consulting.
Working Together!
Intentional Experiential Exercises.
“Little Train?”
Family Philanthropy!
Family & Entrepreneurial Mentality!
Interdependence!
Family Trust and Truth –
Getting to “Transparent Honest Communication”
“We need to build a bridge of Grace

and Trust with each other so we can
drive the truck of Truth over it.”
Green Family Grandson-in-law






44
Families in the Bible – Unity?
The Joy of Interdependence - "LITTLE TRAIN?"
2 Timothy 4:2 “Family Culture/Practice?”
1) Teaching – “Give understanding, motivation and grounding.”
2) “Preparing” – “Get ready for what is to come.”
3) Rebuking – “We don’t do these things.”
4) Correcting – “Here is what you could do instead.”
5) Training in Righteousness – “Mentor and Model how to live.”
6) Encouraging – “Atta boy! You're doing Great! Keep going!”
As you read the bible, ask what each verse/story says about the five
items above. Then ask the family if we can apply the lessons/actions.
How Do We Lose Trust & Respect?
Examples are everywhere:
Cain and Able – Jealousy over Gods favor
Isaac blessing Jacob, not Esau

– Jacob tricks Isaac to gain blessing
Jacob and Joseph
– Brothers feel jealous of Jacobs favor and Josephs
confidence
Prodigal son
– The “Good Son” is jealous of the prodigal
Family conflict has been around for a while!

What happens if we don’t try to forgive?
“Unforgiveness is like eating rat

poison and then waiting for the
rat to die.”
Jamie Bush





“Life Long Learning” Creating a Family Curriculum


Preserving Wealth in Families
ACTIVITY AND COMMUNICATION
“LITTLE TRAIN”
• A Vision - Horizontal vs. Vertical Structures.
Rothschild vs. Vanderbilt – Family meetings?

“LITTLE TRAIN”

• A Practice - Family Philanthropy. Low Consequence.
Philanthropy day? Aunt and Nephew story?

“LITTLE TRAIN”

• A Practice - Family Philanthropy. Low Consequence.
Philanthropy day? Aunt and Nephew story?

• A Discipline - Family Governance. Higher Consequence.
Vacation Planning, Family Bank, Family Office?

“Family
Education”
Let Them Learn

Together,
Through
Mistakes and
Successes.
(Adversity?)
Paul Stoltz

Thomas C. Rogerson, CEO
GenLeg Company - Creating Generational Legacy.
Co-Founder of The Family Legacy Council –
with Marvin Blum, Founding Partner of The Blum Firm and Peter Culver, CEO of IWM Advisors
“If you want to go fast, go alone.
If you want to go far, go together.”
- African Proverb

Key Conclusions – “Get Started!”
1. Most families fail at preserving wealth and family – 70% fail by end of the second
generation, 90% after three generations.
2. The cause of this phenomenal wealth and family erosion isn’t bad investment
management or bad tax planning, Rather, it’s the lack of trust and communication
around group decision making.
3. Most modern estate planning does not address the critical issues of trust and
communication inside the family. In fact, many traditional estate plans increase the
likelihood of wealth and family erosion.
4. Family culture is hard to change, especially from the inside, but done right can
help establish shared connection and identity while building resilience.
5. The key to changing the paradigm of “shirtsleeves to shirtsleeves in three
generations” is Family Learning through Family Meetings. Family Education is:
“Lifelong Learning Together!”
6. Traditional estate planning tools alone cannot guide families across generations,
and may actually be damaging to the process
7. Families must Have Family Meetings, build trust, choose interdependence, and
practice group decision making
8. Governance practices need to be clear, relevant, followed, and Endowed – Fund a
F.A.S.T.
9. Shared experiences, activities and traditions create “belonging,” reinforce
commitment, create resilience, and fortify relationships.
10.Hire Experienced Family Facilitators/Consultants to get the process started and
keep it going – “The opposite of Control is Participation!”
GenLeg Co., Inc. Mission Statement 5
8
Our Passion and Mission is to:

Intentionally introduce and
reintroduce a family to itself
repeatedly, with tools, activities and
metrics to measure success.
“To Educate, Motivate and Facilitate!”

58
Q. & A.

GenLeg Company
Tom@GenLegCo.com
www.GenLegCo.com
617-688-2029
THE END
Thank You!
Please contact us about

how we can help YOUR FAMILY!

GenLeg Company
Tom@GenLegCo.com
www.GenLegCo.com
617-688-2029

The Family Dynamics of Wealth

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Family Dynamics of Wealth

Uploaded by

Copyright:

Available Formats

Strong Families Survive Tough Times.

The Times Are Upon Us, How’s Your Family?

The Effect of Covid-19 on the Family and

Tom & Cathy Rogerson

© GenLeg Co., Inc. 2019

1) Financial wealth is gone. Enterprises, Structures & Assets

2) Family Identity and History forgotten or lost.

3) Family Independence to the point of Estrangement.

“What you did is your History. What you set in

2.Intellectual & Family Capital – We

3.Social Capital – World

4.Financial Capital – Wealth Wisdom

James E. Hughes Jr.

© GenLeg Co., Inc. 2019

1.Human Capital – Love of Self

2.Intellectual & Family Capital – Love of Family

3.Social Capital – Love of Others

4.Spiritual Capital – Love of God

5.Financial Capital* – Love of Creation

*The purpose of financial capital is to enhance human,

1.Human Capital – Love of Self

2.Intellectual & Family Capital – Love of Family

3.Social Capital – Love of Others

4.Financial Capital* – Love of Creation

Spiritual Capital – Love of God

© GenLeg Co., Inc. 2019

- Abraham Lincoln and Luke 11:17

70 % Of all wealth transfers fail in one generation.

Of all multi-generational wealth transfers fail within three

Of families say it is important to leave values and life lessons as

Of Heckerling attendees said “Family Conflict” was the

© GenLeg Co., Inc. 2019

© GenLeg Co., Inc. 2019

60% of Failure is Due to a Lack of Communication and Trust

25% of Failure is Due to Unprepared Heirs. Family Culture?

10% of Failure is Due to No Clarity of Family Purpose and

Less than 5% of Failure is Due to Failures in Financial

© GenLeg Co., Inc. 2019

60% of Failure is Due to a Lack of Communication and Trust

25% of Failure is Due to Unprepared Heirs. Family Culture?

10% of Failure is Due to No Clarity of Family Purpose and

If this is the problem,

“Culture Eats Strategy

© GenLeg Co., Inc. 2019

Independence vs. Interdependence

Most families try

Entrepreneurial to stay up here

Low Wealth $ Medium Wealth $$ Extreme Wealth

Independence vs. Interdependence

Dependence The O’Connor Ironwood

Low Wealth $ Medium Wealth $$ Extreme Wealth

Independence vs. Interdependence

Most families try

Low Wealth $ Medium Wealth $$ Extreme Wealth

Modern family get-

Entrepreneurial Family &

Low Wealth $ Medium Wealth $$ Extreme Wealth

Independence vs. Interdependence

Low Wealth $ Medium Wealth $$ Extreme Wealth

Luke 15: 11-32 “The Prodigal?”

Genesis 37:1-2 Joseph, the “Favorite?”

How did you come to faith? A Billy Graham Crusade? A TV evangelist?

“You don’t have enough money

© GenLeg Co., Inc. 2019