Dear Family,
Family Offices access to some of the world’s finest financial and legal talents, and yet it is unusual for one to endure for more than three generations. Why is this?
The answer comes from a parable called shirt sleeves to shirt sleeves in three generations, which in essence states that the original wealth creator starts by rolling up his or her shirt sleeves, and works hard to build something enduring. The second generation on the other hand is rather passive and does not harness this energy to augment while the third generation dissipates what has been built as the family splinters apart. There is a remedy, though.
The reason why Family office is called Family office is all about Family and that fact seems to fall by the wayside as one professional or another shares strategies for a bright future without ever considering who that future is actually for.
However, there is another approach. John Adams, one of America’s founding fathers said: “I must study Politicks and War that my sons may have the liberty to study Mathematicks and Philosopy. My sons ought to study Mathematicks and Philosopy, Geography, natural History, Navel Architecture, navigation, Commerce and Agriculture, in order to give their children a right to study Painting. Poetry, Musick, Architecture, Statuary, Tapestry and Porcelaine.”
The Iroquois follow what is called Seven Generation Thinking, commencing tribal meetings with expressed recognition and homage to the seven generations that preceded them and committing themselves to follow in their ancestor’ footsteps so that they too some day will be treated in the same fashion.
With careful attention to family governance, the fabric that is to hold a family together for generations to come requires a very different mindset than one strictly focused on financial wealth. For instance, does your trustee consider himself or herself a transactional partner to a minor beneficiary or a personal regent? Do you let trustees know with a ‘letter of wishes’ what you expect from them for beneficiaries? Have you shown your descendants your care and concern for them with a ‘well-being trust’? Rather, the welfare of each and every family member must be considered so that all flourish, a concept of the highest order according to Aristotle.
All boats are to rise together! This approach requires an organizational commitment being managed to consider a family’s human, spiritual, social, and intellectual capital and that’s what Steven Lehat’s role is as mentor and personne de confiance to help families as families flourish.
Whether you have just started a family office or want to or have one for many years, if this area is one in need of attention, feel free to reach out to Steven.
Warmest regards,
Steven Lehat