Improve Inter-Family Discussion to Improve Estate Plans

The history’s largest intergenerational wealth transfer is upon us, and too many wealth transference and business succession plans are failing. Some of these failures are due to a lack of competent transference plans, a lack of specificity, liquidity issues, or inadequate tax planning.

Poor inter-family communication is one of the key reasons that all of these failures occur. In 2005, Dr. Ken Dychtwald of Age Wave conducted a study that found the biggest barriers to discussion to be discomfort with topics of death and inheritance.

The discomfort can be overcome with a framework for open discussion. Families can meet to discuss these issues and should start with positive family stories. Postponing these uncomfortable discussions might result in exaggerated or unfounded discomfort, so it is better to address these important planning issues now, rather than later.

See Mitchell Kauffman, Wealth Transfer and How to Avoid it, kauffmanwealthservices.com, Oct. 7, 2011. 

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.