Complete Family Wealth
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- Create Date：2022-02-26 08:52:04
- Update Date：2025-09-06
- Status：finish
- Author：James E. Hughes
- ISBN：1119820030
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Summary
What matters most in managing the family enterprise
Complete Family Wealth is a comprehensive resource for growing， maintaining， and managing wealth across generations。 A successor to the classic Family Wealth， now in its 20th year， this book provides updated and expanded guidance to change the way you think about your wealth and legacy。 This team of expert authors—who brought the field not only Family Wealth but also Family the Compact， The Cycle of the Gift， The Voice of the Rising Generation， and Family Trusts—ground Complete Family Wealth in a clear account of the “five capitals”: human， intellectual， social， spiritual， and financial。 The discussion covers the “what，” “who，” and “how” of family wealth management in clearly-delineated chapters that allow you to dip in as needed， from the principles of family enterprise to family governance， philanthropy， and more。 Each family member plays a distinct role， and by exploring each member’s responsibilities in terms of the family enterprise， this book provides insights and ideas for real-world families struggling with all-too-common challenges。
Growth-oriented practices today lead to generations of family flourishing in the future。 This book provides the answers you need along with guidance and strategy for keeping your family’s complete wealth intact。
Understand the five forms of capital that comprise “complete family wealth” Explore the roles of each family member in helping the family enterprise flourish Learn how friends， trustees， and advisors contribute to family wealth management Adopt specific practices that help families grow their complete wealth and ensure its survival through generationsFamily wealth can sometimes feel like more of a burden than a blessing。 Developing the right understanding， character， and structures can improve family enterprise management and protect all your family’s capital from whatever the world throws your way。 Complete Family Wealth is a one-stop reference for ensuring a positive legacy for future generations。
Reviews
Constant
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This review has been hidden because it contains spoilers。 To view it， click here。 The book has less about the nuts and bolts of family office management and more on the qualitative aspects of ensuring that the family itself is a cohesive， healthy unit over multiple generations。"Complete family wealth is comprised of four qualitative types of capital: human， intellectual， social and spiritual - and the family's quantitative assets， its financial capital""Any family whose complete wealth - qualitative and quantitative - is simply maintaining value rather than growing is either The book has less about the nuts and bolts of family office management and more on the qualitative aspects of ensuring that the family itself is a cohesive， healthy unit over multiple generations。"Complete family wealth is comprised of four qualitative types of capital: human， intellectual， social and spiritual - and the family's quantitative assets， its financial capital""Any family whose complete wealth - qualitative and quantitative - is simply maintaining value rather than growing is either in or in danger of entering into a state of decay or entropy。 A family， like every investor， must maximize its return on capital if it is to achieve the growth necessary for preservation over a long period of time。""Money is perhaps the last and most pervasive taboo。 Many times this is for bad reasons: family members feel uneducated， disempowered， and embarrassed。 This silence comes with a real opportunity cost。"Thinking about expenses that are one-time in nature or rare versus ongoing。 Encouragement for investing in and budgeting for growing human， intellectual， social and spiritual capital。"A family of affinity does not limit its sense of identity to blood or genetic lineage。" This can include members through marriage or partnership， spiritual relationships， mentorship， friendship， partners in business or philanthropy and trusted advisors。** Keys to a family flourishing:Intention to build not only great fortune but also a great family。Articulate and share core values and keep these alive through example， education and further discussion。Respect and encourage individual differences。 Support members' separation and individuation as members of the family discover their own dreams。Focus on their strengths。 Face challenges squarely but don't let liabilities become their focus。Share history through family stories that are told and retold through generations。Parents present themselves as both teachers and learners。Understand the importance of individual stages of development and integrate that understanding into parenting。** Three Circle Model of an operating business or management of the family financial capitalConcentric circles of Owners， Family and Managers （but with different sizes）"Time should be measured by the generation。 Otherwise， how can a family address whether it will still be together in the fourth generation。 Short term for a family is 20 years， intermediate term is 50 years and long term is 100 years or more。""One of the main concerns voiced by members of the rising generation within families with wealth is that they fear that prospective friends or partners will see them only for their money。""Most of our supposed gifts are not true gifts。 They are transfers。 Transfers lack spirit。 They move assets from one balance sheet to another。 They often leave both the giver and the receiver feeling that there are strings attached。""Even though most gifts start out as transfers， they don't need to end up that way。 Transfers can be transformed into gifts。"** Questions for TrustsHow much is enough？Fair versus equal？Communication is critical， may want to develop a "communication plan" that covers the content， tone and process of communication。"The greatest enemy of communication is the illusion that it has taken place （George Bernard Shaw）。"BOOK: "A Wealth of Possibilities" discusses parenting amid wealth** Trust ProtectorCan remove or appoint trusteesModify the trust for tax purposes and beneficiaries' interests， modify powers of appointment， change the applicable law governing the trust and terminate the trustTrust protector as champion as a role that takes no action unless requested by the beneficiary （and possibly also by the trustee）** TrustsTax minimization， asset protection and control"This trust is a gift of love。 It's purpose is to enhance the lives of the beneficiaries。""Eighty percent of the time， do nothing。" Author argues that often the best resolution for a matter is simply time （or delaying action）。** Idea of Friends as WealthNo accounting of such friendships and no conscious planning around the topicAristotle's categories of friends: friends of utility， friends of pleasure and friends of virtue。"Life is like the Olympic games。 In the arena are are the contestants， striving to win。 Around them are the spectators， cheering or booing。 And wandering through the stands are the vendors， selling drinks and snacks and the like。 These three types of people represent the three main ways of life。 There is the life of those who seek honor: the gold medal， the cheers of the crowd， deathless fame。 There is the life of those who want money， buying and selling wares。 And then there is the life of the spectator， who finds pleasure in watching the contestants， his fellow spectators， and this entire game called life （Pythagoras）。"** PrenuptialsAround 40% of first marriages， 60% of second marriages and 70% of third marriages end in divorce。Marriage happens under the specifics of state law。Prenups should "ideally be finalized several months before the ceremony。""Parents should acknowledge that， in most cases， their desire for a prenup has little or nothing to do with the couple and much more to do with their family's financial capital。 Acknowledging this point can depersonalize the prenup。""More and more parents give to their children during their lifetimes and more and more gifts are made in trust。 If these trust interests and family business interests are taken out of the equation， the adult child may have few financial resources that would become the subject of a prenup。"** Family MeetingsClear agenda and defined goals are critical。Values-clarification exercises （what matters most to me and why？）Visiting recipients of charities together。** Family GovernanceMost families work best in "confederal" way where each nuclear family retains authority over most matters with a few decisions made by family-wide governance bodies。Advisors may recommend central systems but this is not typically sustainable over the long term （e。g。， driven by a single individual）。** Investor AllocationThis refers to which family members hold which assets， not typical asset allocation models。When families make investments， this is typically a function of which individuals have cash at the time of the opportunity。 However， for long term tax minimization it often makes sense for younger family members to invest versus the older members who are most likely to have capital。 As a result， the older family members will hold the fastest appreciating assets even if they tend to be more risk averse。"Normally， this means the oldest family member buys the investments offering the lowest growth， and the youngest family member buys the investments offering the highest growth。"This is usually achieved through intrafamily loans but carry "certain IRS responsibilities to ensure that they are arm's length loans and not recharacterized as gifts。"** Family Bank"Provides a means for a family's wealth to be leveraged by making loans available to family members on terms not available commercially。""Loans from a family bank are usually for two purposes: investment， to increase the family's financial capital; or enhancement， to increase the family's qualitative capital。"Process of "applying" for a loan to the family bank provides checks and balances， and also provides real world business experience。** Family Philanthropy"Families that give together engage in multigenerational conversations。"Transfer of values and family togetherness。 。。。more
Kay's Pallet
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This book is made for a very specific group of people。 Since I’m not part of that group， it’s hard to tell if this is good advice or not。 I don’t suggest reading it unless you consider yourself to be in a wealthy family。
Rune Huang
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Hughes et al make an interesting case for how to approach family management with a "7-generation" mindset。 Steeped in Western values that extoll wise stewardship， confederal-style cooperation， and honoring individuality， this primer sets up the reader for not only other titles in the authors' portfolio of offerings， but also encourages him and her to think about how their family can be multi-generational too。 Hughes et al make an interesting case for how to approach family management with a "7-generation" mindset。 Steeped in Western values that extoll wise stewardship， confederal-style cooperation， and honoring individuality， this primer sets up the reader for not only other titles in the authors' portfolio of offerings， but also encourages him and her to think about how their family can be multi-generational too。 。。。more
Justus
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Don't let the middling， three-star review lead you astray: I actually recommend this book for the very tiny number of people in its audience。 There simply aren't very many other books that even try to address the dynamics of extremely wealthy families。 This book's shortcoming is that it is hamstrung by its brevity。 It's treatment of subjects tends to be very high-level and cursory。 While good， it is almost certain to leave you wanting more。 It covers a ton of subjects in ~150 pages， which means Don't let the middling， three-star review lead you astray: I actually recommend this book for the very tiny number of people in its audience。 There simply aren't very many other books that even try to address the dynamics of extremely wealthy families。 This book's shortcoming is that it is hamstrung by its brevity。 It's treatment of subjects tends to be very high-level and cursory。 While good， it is almost certain to leave you wanting more。 It covers a ton of subjects in ~150 pages， which means that many of them get only 3 or 4 pages， which is just enough to scratch the surface rather than give any kind of deep dive。The target audience for this are families with "dynastic wealth"。 That is， so much money it is going to last several generations。 In practice that means， I dunno， over $20 million？ Something like that。 A lot of the advice is also based around assuming this wealth has been in place for a while and there are several generations at play。I'd say the "target persona family" is something like $100 million and 20+ members of the family from 3+ generations， with the financial entrepreneur who started the whole thing in their 70s， if not actually passed away already。 That doesn't mean it is useless in other situations but it does mean some of the advice is less immediately useful。So the audience for a book like this going to be tiny。 I'm not in it。 But it gives good， albeit somewhat cursory guidance， on a wide range of topics。 How to deal with the 3rd， 4th， and later generations that are increasingly distant from the original source of wealth （likely a family business of some sort）。 How to accept that maybe none of your heirs are or want to be entrepreneurs like Grandpop was？ How to integrate spouses so they don't feel "lesser" than "real" family members？ How to discuss prenuptial agreements？ How to discuss the family wealth with your children at various ages？ How to look for friends who aren't just hangers on？ How to think about loans from the "family money" if someone wants to start a business？Unsurprisingly， in many cases the advice is fairly straightforward and just involves pausing for introspection and communicating clearly。 While true-ish， I think the book's biggest weakness is that it doesn't give enough frameworks for these times of introspection or communication。The most intriguing sections are about family governance。 If you've ever been in the management of a group at work， there is a lot that is familiar。 Surveying family members to see what problems and challenges they think the family is facing。 （Keep in mind， there might be 40+ family members; maybe only 5 of them are directly involved in the family business these days。） Coming up with family values and missions statements， to try to keep dozens of people on the same page over generations， instead of fracturing and drifting apart。 Having family meetings （preferably at an off-site， not someone's house， and probably with a professional facilitator in the first few） -- quarterly or annually -- to go over family business， big happenings in the family， workshops， etc。 （They recommend two half-days of family meetings。）One of the most striking points they make: a family like this probably spends quite a lot of money on maintaining and improving their financial wealth。 How much money are they spending every year on maintaining and improving their families human capital， intellectual capital， social capital， and spiritual capital？ 。。。more
Scott Haese
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Read it twice。 Some of the guidance geared toward the ultra-wealthy yet provides insights into intergenerational wealth management for more modest estates。 Much appreciate the focus on wealth not just as financial but also in terms of human， intellectual， social and spiritual capital。
Andres
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Very nice。 Will be re-reading it again in a few years。 Great way to pass down the values to help future generations retain accumulated wealth。
Andrei Savu
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A book on how running a business and keeping a family together are sides of the same coin。 Often with very different time horizon but still very similar from an overall governance perspective。 This level of sophistication is rare but seems to be critical in order to maintain wealth across multiple generations， for all kinds of wealth。 Maybe one thing we should take away from this is the atom in society is not really an individual but a family。
alex boyi
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A must read
Donovan Johnson
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Very thorough textComplete in its， coverage， you never read this work and get the impression that something is missing。 So many perspectives are covered， you get a fair degree of confidence that you’re being equipped with the why and the what of how family wealth should be considered。
Reference
google book https://www.google.com/search?tbm=bks&q=Complete Family Wealth
hathitrust digital library https://babel.hathitrust.org/cgi/ls?q1=Complete Family Wealth&field1=ocr&a=srchls&ft=ft&lmt=ft