Why Legacy Matters to Estate & Succession Plans

Chart courtesy of Allianz American Legacies Pulse Survey


     There is a huge unmet demand to provide a solution that can marry the client’s values with their valuables. Advisors need to know that their client’s life experience, the lessons learned and hard won wisdom cannot be listed on a balance sheet or constrained to a legal document.


     Professionals in Wealth Management, Succession Planning and Estate Planning are keenly aware of the failure rates related to inter-generational wealth transfers. Regardless of size, many estates fail in the second generation and fewer still survive the third. The reasons have less to do with math and much more so with the ‘human’ factor. Strategies currently employed by the industry to address this problem are found to be wanting.


     The answer lies in finding a way for succeeding generations to take responsibility for, as well as ‘ownership’ of, the gifts they receive. But, they cannot be expected to be invested in perpetuating the family narrative if they don’t know it. Appreciation of the herculean efforts, the incredible risks, the sweat, the tears and the vision it took to create the wealth can be accomplished, to a degree, through sharing the story. When heirs know their history and 'own' their unique family narrative they more readily see themselves as an integral part of that greater story.


     There are problems though when attempting to build a legacy. Too many assume a family history needs to be a written story, edited and published in a book. Many fail to see the value in such an exercise, believing it too pretentious. They also face the challenges of: feeling they lack the requisite skills, of being overwhelmed by the task, not knowing where to begin, and lastly, procrastination.


    To address this problem, Ascent Private Capital Management, a private banking unit of U.S. Bank has hired an historian to manage an asset that some families cherish as much as their money: their legacies.


    “We know that managing the wealth of families is much more than managing their money,” said Scott Winget, Ascent’s senior managing director and head of wealth impact planning. “Using a family history helps establish what a family’s values are.”



   The Legacy Values Plan is a tool for Wealth Managers, Estate Planners and Family Business Consultants to provide as a free 'value-add' service to their clients: https://www.legacystories.org/values


 Building strong ties between generations of the family does more than ensure intergenerational integrity, it preserves and builds wealth.

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True Grit Grandpa

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