Family Culture Archives - The Certior Group

What Really is Estate Planning?

January 20, 2020 by Avi Kantor

Most lay people would probably respond “wills and trusts.” If you ask professionals who specialize in estate planning, you might get answers like “preserve and protect money and assets for future generations” or “minimizing taxes and maximizing the transfer of assets.” Both perspectives are certainly accurate. But this raises the question, “Why do we do estate planning?” In other words, what are we trying to accomplish when we do estate planning?

If we look at the typical professional approach, it boils down to maximizing the money and wealth transferred and assuming that that will best serve the people involved (i.e., the family). For this article, we’ll call this Approach #1. But if you could read people’s minds, I would speculate that what most people really want is for their family to remember and honor them by capturing and leveraging their lifetime of experiences and wisdom to help their family thrive for generations. We’ll call this Approach #2.

The statistics for Approach #1 are not encouraging. As much as 70% of family wealth is lost by the end of the 2nd generation and over 90% by the end of the third. In other words, all of documents, structures, governance, education, etc. that has historically gone into Approach #1 has resulted in a meager success rate. There’s actually a folk saying for this phenomenon – Shirtsleeves to shirtsleeves in three generations.

We believe it makes more sense to “Put People First”; to not let taxes, structures, distributions, etc. drive the estate planning process. We often see that the typical estate planning process “leaves the people behind” because it focuses and prioritizes legal documents, saving taxes, and maximizing asset transfers, etc. Instead, we believe in first building individual, self and social awareness; nurturing emotional intelligence, enhancing communication skills; and setting the conditions for collaboration (Putting the People First). THEN, utilizing the traditional tools and techniques of estate planning to enhance the outcome and serve the people, not the other way around.

Why ultimately do we put people first? In order to optimize multi-generational True Wealth; that is, to help people live happy, fulfilled, meaningful, and joyous lives.

What Will The Future of Family Stewardship Be?

October 1, 2018 by Avi Kantor

In the late 20th century, the United States Army War College created the acronym VUCA to describe the conditions that would exist after the disintegration of the Soviet Union. The acronym stands for volatile, uncertain, complex, and ambiguous. The term has caught on with the military and, especially, in business, describing the general conditions that exist today in nearly every aspect of our daily lives: technology, culture, politics, economics, etc. Massive changes, simultaneous opportunities for greater abundance as well as disruption of our way of life, are the order of the day.

As science and technology inexorably advance, there may soon come a day when sophisticated tax, legal, accounting, financial, and other technical information and strategies will be widely available on demand to the general public at an affordable price. We will also face unprecedented disruptions in our traditional patterns of work, career development, family dynamics, aging, and retirement.[1] Perhaps these trends will eventually lead to a world where artificial intelligence, “big data”, and algorithms know us so well that our most sophisticated multi-generational planning is automated and personalized.[2]

With the inexorable advance of technology and its dominance in our everyday lives, what will the future of family stewardship planning be?

Charles H. Green, the author of the book “The Trusted Advisor” says:

“People rarely give over their trust to institutions; really, they trust other people…While companies are often described as credible and reliable…it’s really the people within the companies that make those companies what they are.”

The Trusted Advisor

In a rapidly changing VUCA world, we do our best to foster participation and engagement in experiences where people are in conversations with other people. We view our role as guiding people down the path of discovery through these experiences and conversations. The practice of Gratitude especially has, in our experience, transformed people’s experience of wealth and their experiences of other family members, making them more aware of their common bonds and shared values.

Stewardship involves building and developing leadership in future generations and committing to ethical excellence in the way we lead our lives and families. Stewardship and family leadership also involves intentionally being aware of and nurturing sustainable family culture (the traditions, rituals, ceremonies, and unspoken ways that families do things, interact, as well as the expectations that go with these activities). Family culture is often a missing element in trust and estate planning, especially when governance and structure are the primary emphasis in the planning process. We view this as our opportunity to make a difference in the effectiveness of the planning process, regardless of the state of the world, technology, or existing relationships with other advisors.

[1] “Reimagining Maturity”, Ken Dychtwald, American Society on Aging Annual Conference, General Session Keynote address, March 23, 2015.

[2] Peter Diamandis and Ray Kurzweil, Abundance 360, Livestream, September 14, 2018. During this video broadcast Kurzweil and Diamandis speculated that such capabilities might become widely available within the next 10 to 15 years because of what Kurzweil calls “the law of accelerating returns”.

A Few Thoughts on Family Leadership

April 19, 2018 by Avi Kantor

Recently, one of our Certior Group co-collaborators Erik Gabrielson conducted a multi-generation family meeting in Minnesota. Another co-collaborator Ron Nakamoto, assisted Erik and participated as an observer. After reflecting upon the meeting, Ron shared the following thought-provoking observations about family leadership:

It is essential that a multi-generational family come to a collective understanding that sustaining the family, the wellbeing of its members, and its wealth requires leadership and leadership development;
It is advantageous to have a leadership development process; having an outside facilitator can greatly accelerate progress;
Learning specific business skills is important and should be pursued but family members mentoring future family leaders is perhaps more important;
There is a society-wide shift from autocratic to more collaborative family leadership taking place. This shift presents an opportunity to create a form of meritocracy that balances traditional hierarchical organizational leadership with more modern egalitarian ideas. That is, there can be a way to get input from many but still rely on the wisdom and judgement of those who are best-suited to lead to make informed decisions on important matters;
Families must communicate, communicate, communicate if they are to prosper in the future;
It’s important to adopt an entrepreneurial, learn-from-mistakes mindset to address the volatile, uncertain, complex, and ambiguous world we live in.

These thoughts and ideas will undoubtedly inform the ongoing work that we’re doing here at The Certior Group. In addition, Erik plays an integral part in our ongoing Wealth and Wellbeing Community. I’m grateful for the progress we’re making in our efforts to help our colleagues, clients, and community optimize True Wealth.

Avi Kantor

The Value of Gratitude

March 17, 2018 by Avi Kantor

The Wall Street Journal recently published an article “How to Raise More Grateful Children”. The subtitle states: “A sense of entitlement is a big problem among young people today, but it’s possible to teach gratitude”. This last idea is what we are doing with our Certior Group community.

How to Raise More Grateful Children

Much of what I’ve learned about Gratitude has come from personal experience. When I look back, every personal crisis I’ve had has ultimately led to me to Gratitude. Whether it’s a serious illness, or a major setback in business or an unexpected accident, I now see the positives in those events and feel grateful for what I’ve learned from them. I’ve learned that adversity can be a great teacher, if you pay attention to the lessons. It wasn’t always that way.

I’ve learned a lot about Gratitude from my colleagues and friends at Empowered Wealth. Many have had personal or family health issues. We have all learned to appreciate and not take good health for granted. We’ve all learned the value of having family members who get along and care about each other. I think we share the value of friendship and being part of a community where we feel like we belong. It’s one of the reasons why I love living here in Jackson.

Most of all, my experiences have taught me the value of Gratitude is a lifestyle, a practice that starts with self-respect and respect for others, grows into appreciation for the many blessings we all have, and inspires the spirit of generosity that gives fulfillment and meaning to the way we live our lives.

Leaving an Inheritance of True Wealth

February 17, 2018 by Avi Kantor

One of the statistics that we often cite is that 97% of family wealth is lost by the 4th generation. This statistic has its genesis in a study conducted many years ago by the Family Firm Institute. Another organization The Williams Group has conducted a 20 year study that cites 70% as the percentage of family wealth that is dissipated over three generations.

How to Leave an Inheritance Without Causing Grief

One of the reasons we founded the Certior Group on the principles of Empowered Wealth was to address some of the issues cited in this article. As the title suggests, the article focuses on leaving an inheritance. It references research done by Boston College that indicates that “participants with children worried less about making more money and impacting the world through philanthropy than ‘to be a good parent’.”

As a parent with young children, this phrase resonates with me. The paradox and challenge for me – as I’ve observed it is for many – is that “leaving an inheritance” is a somewhat distant, abstract idea. The task that we’re contemplating is to clearly, realistically visualize the future and begin to set the conditions now that will give our children and future generations of our family the greatest likelihood of succeeding and thriving. This is no different than the responsibilities and opportunities our ancestors faced. What’s different about today is that technological, demographic, economic, social, and political forces are accelerating change in more volatile, uncertain, complex, and ambiguous ways than ever before.

I commend the Williams Group for identifying “meaningful, productive and honest conversations about the impact of money and the purpose of the wealth”; heirs “relationship to wealth”; and “having a shared understanding of the purpose of the wealth” as guidelines for how to be “good parents” when it comes to inheritances. However, here’s where the principles of Empowered Wealth have informed our work; there’s more to being a “good parent”.

We are very committed to empowering leaders in families who, in turn, will empower family members (and others) to live in Gratitude and to build their futures around what they value most.

Avi Kantor

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