Family Objectives Development

Issues to Consider

• What are the family’s attitudes toward money? Where do they come from?
• Do all family members have a Durable Power of Attorney for Healthcare? – Is it current and in the correct state?
• Have you planned for the children’s physical and financial welfare (including coverage of essentials)?
• Do all family members have an estate plan that describes what should be done with their assets?
• Are you philanthropically inclined? Is your plan clear?
• Do you have a plan if you inherit an operating business?
• Do you know what you need in order to feel financially secure?
• What are your attitudes toward the family business or family office?
• Does the family understand the working relationship with your professionals? Financial advisor? Accountant? Attorney? Insurance consultant? Banker? Trust officer?
• Have all of the above been adequately communicated to those who need to know?

Key Subjects To Address in a Family Meeting

Philosophical Issues

• What are the family’s core values? How important are they in planning for the future of the family and the business?
• What are the family’s long-term and short-term objectives as a family unit?
• What are the objectives of the family’s estate planning? Tax minimization, next generation, or dynasty?
• What are the long-term and short-term investment objectives of the family?
• What are the long-term goals for operating the business, both for the business and for the family?
• What are the long-term goals for the family office?
• Are regular family meetings important and if so, for what purpose?
• How should future generations be educated about the family’s values and objectives and the family business?
• How does philanthropy play a role in the family’s objectives?
• What issues are the most important or urgent to the family?

Business Issues

• Financial Statements: Review Cash Flow Analysis, Statement of Changes in Net Worth, Statement of Net Worth: Comparison of Market Value, Statement of Net Worth: Comparison of Cost Basis
• Investments: Report on the Status of Investments, Review Asset Allocation Analysis, and Make New Investment Recommendations
• Estate Planning: Review Existing Estate Plan and Tax Law Changes, Discuss Child Guardianship, Review Durable Power of Attorney for Healthcare Issues
• Insurance: Review Personal, Property, Business, Life, and Medical Coverage
• Operation of ABC Corporation: Management Issues, Financial Statement Reporting
• Review of Tax: Review of Returns, Projections, and Positions Taken
• Philanthropy: Discuss Site Visits, Review Grant Proposals, Decide on Contributions, Discuss Mission Statement