Family Dynamics & Governance
Generationally wealthy families often have planning needs that go beyond investing and taxes. In fact, preserving family values and stories, preparing rising generations for the unique opportunities and challenges that await them, and formalizing roles and systems within the family often take priority when it comes to ensuring a family’s legacy and unlocking the true potential of their wealth.
Our Approach to Family Dynamics & Governance
Over 70% of The Liles Group's client relationships span at least two generations of a family. Research by The Williams Group suggests that 90% of family wealth is lost by the end of the 3rd generation.1 This same study concluded that 60% of this failure to successfully transition family wealth was due to the breakdown in communication and trust within the family and that 25% was attributable to heirs not being adequately prepared for their situation. While there is some debate to the validity of that research, anecdotle evidence supports the findings that it is generally difficult to transfer family wealth across multiple generations. Often times, this lack of a successful transition is likely a function of the mathematics of having multiple children in multiple generations, but it can also be the result of a lack of deliberate planning and poor preparedness. Our family dynamics and governance planning serves this human side of wealth and includes:
Family Genograms/Family Mapping
A family genogram can be a fun and informative visual representation of a family tree. They can go beyond basic data to include information about relationships, sources of conflict, special needs, etc. Genograms can be a great first step in formalizing the family system.
Family Mission Statements, Family Values Statements, & Family Charters/Constitutions
These types of documents can be used to formally document a family's values, vision, objectives, decision making frameworks, etc. They can be an important a roadmap for navigating wealth, business, and legacy transitions over time and across generations.
Family Meetings
Family meetings can be a great way to unite family members around their shared values and objectives to help them build relationships, establish trust, and learn valuable skills. Our team has deep resources to help plan and facilitate these meetings.
Family Events & Education Opportunities
From time to time, The Liles Group and Baird will hold live events, as well as virtual meetings, that bring families or like-minded people together. Sometimes these are get togethers are just for fun, while other times they educational or inspirational.
The Liles Group’s family dynamics and governance planning capabilities are further supported by a dedicated team of attorneys and tax & estate planning specialists. We regularly consult with our Advanced Planning Team for assistance with technical matters and for help creating tailored solutions for our clients’ most challenging problems. We also engage several resources outside the firm for this discipline.
1Source: Research study by Roy Williams and Vic Preisser, The Williams Group, 2002, as cited in Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values, Roy Williams and Vic Preisser, 2011.
The Liles Group’s family dynamics and governance planning capabilities are further supported by a dedicated team of attorneys and tax & estate planning specialists. We regularly consult with our Advanced Planning Team for assistance with technical matters and for help creating tailored solutions for our clients’ most challenging problems. We also engage several resources outside the firm for this discipline.