Wealthy families face difficult questions - giving it all away wisely. To quote the Notorious B.I.G., "I don't know what they want from me/It's like the more money we come across/The more problems we see." David Green provided a strong foundation to solve this issue. Any society throughout history gives different answers. What worked in the 1900s might not work today. The type of wealth also makes the question difficult. To make the question more vexing today - the great disparity of wealth. Families wrestle how the next generation should be stewards of that wealth. Giving it all away without destroying future family members only has vague answers. Some families seek guidance from religion and others philosophy. Last week I heard Mr. David Green, founder of Hobby Lobby, speak on this topic to 10 people. the graciousness of his time amazed me. Notably, the evergreen guidance provided by David Green gives anyone food for thought.
The Difficult Question
Giving it all away to whom, when, how, and why? To answer these questions consider the philosophy of your wealth and family. Religion provides guidance as do the ancient philosophers of the East and West.
a) Whom - charity, private foundation, and/or family members.
b) When - today, at death, or annually after your passing.
c) How - just income, just principal, parts of a business, or based on your successes.
d) Why - just because, metrics, limitations, or based on a religion/philosophy.
Estate planning lawyers drafting Wills and trusts need to capture all these issues in words. At your passing or during your lifetime someone has to interpret those words. Writing down the answers to these questions makes the creation and interpretation easier and collaborative.
The Source for Giving It All Away
Material wealth comes in 2 types: liquid assets (i.e. stocks, bonds, cash etc.) and non-liquid assets (real estate, private company, oil/gas etc.).
