There Are Better Ways to Think About This
Once again, we’re going back to LinkedIn as a source of inspiration for this weekly missive.
Between events I attend, conversations I have with clients and colleagues, and my favourite social media site, these cover the genesis of 95% or more of what I share here.
The post in question is part of a weekly series I’ve been enjoying, from Pierre Dupont, who is several generations removed from the founder of the eponymous industrial behemoth.
His series, Projecting Wealth Across Generations, is full of great ideas and viewpoints.
In a recent instalment, he mused about the dangers of treating a family’s wealth as a “pile of money”.
“But left without intention, a pile tends to do one of three things:
- dissipate quietly,
- sit frozen out of fear, or
- become the thing the family fights over.”
In the comments, I thanked him for his succinct list, and shared a thought:
“I’ll add that these three results are NOT mutually exclusive, and the pile can end up checking more than one box over time, and #2 and #3 often occur together!”
At A Glance
The Three Fates of an Unmanaged Pile
Tap each card to reveal the fate — and the way out.
+Fate IDissipate Quietly
“Making the financial wealth freely available will surely see it dissipate.”
+Fate IISit Frozen Out of Fear
“The financial wealth gets put into complex trusts or other structures to make sure it doesn’t get frittered away.”
+Fate IIIBecome the Thing They Fight Over
“Estate litigation is one of the fastest growing areas of the law for attorneys.”
+AlsoFates Are Not Mutually Exclusive
“The pile can end up checking more than one box over time, and #2 and #3 often occur together!”
+The Way OutCo-Create Purpose, Mission & Strategy
“It needs to become something the family co-creates, along with a purpose and mission and a strategy to have it fulfill its and the family’s potential.”
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