Summary

A comprehensive guide to inheritance for affluent families The gift of giving is at the core of family wealth and with the new estate law allowing up to $5,120,000 in tax-free gifting, the ultra-affluent are faced with the task of giving in the largest amount in estate tax history. Beyond the tax saving and wealth management implications, the act of giving in such a generous amount opens up a slew of new issues for wealthy families, the biggest of which is: how do I prepare the recipient of such a hefty gift? With that question in mind, Hughes, Massenzio, and Whitaker have written Wisdom and Wealth in three main parts: "The Who of Giving," "The How of Giving," and "The What and Why of Giving." The first part deals exclusively with the people most deeply involved in family giving, especially the recipients and givers (parents, grandparents, spouses, trustees). The second part, "The How of Giving," addresses the delicate balance of givers who want to maintain some level of control and recipients who want some level of freedom in accepting and growing the gift. The final part, "The What and Why of Giving" describes various types of gifts, from money to business interests to values and rituals. The authors also introduce their "family bank" concept as a model that combines loans, trusts, and outright gifts. It embodies a framework and set of practices for long-term family growth.

Author Biography

James E. Hughes Jr., Esq., is a resident of Aspen, Colorado, and a retired attorney. Jay is the author of Family Wealth: Keeping It in the Family, and of Family–The Compact Among Generations, and numerous articles on family governance and wealth preservation as well as a series of "Reflections" which can be found on the Articles section of his website jamesehughes.com. He was the founder of a law partnership in New York City and has spoken frequently at numerous international and domestic symposia. He is a member of various philanthropic boards and a member of the editorial boards of various professional journals.

Dr. Susan E. Massenzio is a psychologist and founding Associate of Wise Counsel Research Associates, a think-tank and consultancy. Susan has extensive experience consulting to senior executives, leadership teams of Fortune 500 companies, and heads of family businesses. Susan served for many years as the senior psychologist for John Hancock Financial Services, a senior vice president at Wells Fargo Family Wealth, and professor and program director at Northeastern University. Susan is a member of the Collaboration for Family Flourishing.

Dr. Keith Whitaker is an educator and founding Associate with Wise Counsel Research Associates, a think-tank and consultancy. Keith has many years' experience consulting with advisors to and leaders of enterprising families. Keith served as a managing director at Wells Fargo Family Wealth, where he founded the innovative Family Dynamics Practice. He has also served as a researcher at the Center on Wealth and Philanthropy, a private trustee, a director of a private foundation, and a philosophy professor at Boston College.

Preface

Acknowledgments

Introduction

Chapter 1: The Elephant in the Room

Grandparents’ Checks

When Giving Becomes an Opportunity

Chapter 2: The Spirit of the Gift

Where the Spirit Leads

The Who of Giving

Chapter 3: Becoming a Wise Giver

Know Thyself

How Much?

Guilt and Remorse

Nothing Too Much

Chapter 4: Receiving Wisely

A Bad Investment?

The Psychological Stages of Giving

Giving and the Work Ethic

Not Yet

Meteors and Resilience

Investing in Recipients

Chapter 5: Spouses

Learning From Yourselves and Each Other

Three-Step Process

Blended Families

Prenuptial Discussions

Fiscal Unequals

Chapter 6: Grandparents

Grandparents’ Great Opportunity

Involving Parents

Grandparents and Philanthropy

Chapter 7: Trustees

The Choice of Trustee

The Type of Trustee

The Relationship between Beneficiary and Trustee

A Regenerative Role

Chapter 8: Elders

Intergenerational Dynamics

Growing Elders

The Work of Elders

The How of Giving

Chapter 9: Control versus Freedom

The Myth of the Free Gift

Cui Bono?

The Giving of Accounts

Letting Be

Chapter 10: Fair versus Equal, Separate versus Together

The Balancing Act

Pot Shots

Flourishing

Promises

Chapter 11: Giving Outright, via Loans, or in Trust?

Options

Sharing the Spirit

Making Loans Work

Why Trusts?

The Family Bank

Form vs. Function

The What and Why of Giving

Chapter 12: What Families Give

Homes

Business Interests

Values

Reputation

Chapter 13: The Why of Giving

Why Not

The Family Tree

Giving Thanks

About the Authors

Index

Supplemental Materials

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.