Family Wealth Planning

Abstract

It’s clear, from what we have already covered so far, that legacy can neither be mandated nor guaranteed. It is often thoughtfully designed, carefully implemented, and perpetually nourished. It is also quickly lost and easily broken. Not all those for whom the legacy was created accept or appreciate their gift. For many, it is not even a gift, but perhaps an unwanted burden that robs them of their ambition or individuality.

I’m a 58-year-old entrepreneur, who, together with my wife of 28 years, built and sold three businesses. We took one company public and changed the way our industry did business. My three kids are young adults, well educated, world traveled, perfectly normal, and completely clueless. I gave each a small interest in my businesses. I just did a bit better than I figured and now each of them have a personal net worth of over $25.0 million. They are each receiving annual cash flow over $1,000,000 a year. None is employed. None has ambition. None has the least desire to use the education or opportunity provided. They have lived off me all their lives and I doubt that will ever change. So, why am I spending thousands of dollars a year on life insurance to provide them an even bigger estate? Why am I paying thousands of dollars in legal fees to create estate plans I can’t understand? What’s it all for? Just how much is enough for these kids? What have I done?

~Carl, Chicago, IL