Four Key Questions to Ask When Developing Your Family Legacy

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Author: Gail Freeman, Vice President, Senior Wealth Strategist, Fifth Third Private Bank

Addressing what your family legacy means to you may seem daunting. You may wonder if you have built enough wealth for your family, properly planned for potential estate taxes and set up the proper trusts.

Family legacy, however, goes well beyond the financial aspects of wealth, encompassing how your wealth impacts and shapes your family. It embodies a tapestry of values, traditions and aspirations passed down through the generations.

There are a few steps you can take to begin creating the legacy you envision. Consider the following four questions designed to delve into the essence of what a family legacy means. These questions explore the meaning of wealth, its potential impact on family, the values it can instill and the importance of knowing how wealth is managed.

Asking these questions, both of yourself and your family, will help articulate and develop your unique family vision. Our Private Bank team understands the importance of family legacy and is here to help you create the legacy you want.

What does your wealth mean to you?

Wealth is a multifaceted concept that can be perceived differently based on individual experiences, values and circumstances. It can often symbolize opportunity, security, freedom and the ability to create a lasting impact. Understanding what your wealth means to you is crucial in ensuring it is utilized to further your family’s goals and aspirations.

Consider your life experiences, values and inspirations. Your experiences and family stories can provide valuable lessons and insights for your family. Sharing tales of hardship and resilience, as well as moments of joy and victories, can help guide and shape your family legacy.

Communicating how your perspective on your family wealth and family legacy may have changed over the years can also provide guidance as you look forward to creating a new shared vision.

What can your wealth do for your family?

Wealth can serve as a catalyst for positive change within your family. It can provide access to a variety of life enriching experiences, foster unity and support within your family and be leveraged to create a legacy of individuality and individual empowerment.

Reflect on your individual priorities and those of your family members. Family legacy can encompass any number of passions and achievements, including education, giving back to your community, fostering entrepreneurship and helping family members pursue their interests to name a few. Celebrating and recognizing these passions and achievements can further foster your family’s motivation to keep the family legacy an integral, guiding part of their lives.

What values do you want to instill in your family?

Family legacy is about the values and principles that guide the use of wealth. These values and principles can help ensure the wealth inherited by future generations is respected and enhanced.

Determine the principles and standards most important to you in your daily life, such as integrity, lifelong learning, philanthropy, compassion and respect for others. These values can reflect the moral compass of your family and help guide behavior and decision making around wealth. Instilling these values in younger generations can help shape how they interact with and contribute to society throughout their lives and future generations.

Do your family members understand how your wealth is managed?

Transparency and education will help ensure family members understand how wealth is managed. The goal is to cultivate a sense of responsibility and stewardship, so all family members contribute meaningfully to the family legacy. Knowledge will also provide clarity for your family to help them better understand how and why your wealth is managed the way it is along with how much wealth there is to be managed.

Ensure family members are educated on any future roles they may take on, such as acting as trustees, leading the family business, spearheading your family’s charitable giving or even what it means to be the beneficiary of a trust. Empowering your family through understanding, as well as providing access to resources to assist them, will help them navigate the challenges of acting as stewards of the family wealth.

By understanding the potential of your wealth to create a lasting impact on your family, instilling and nurturing your family values and providing transparency, the opportunities to foster your legacy are limitless. Answer the questions provided in this article and ask the very same questions of your family members to build a shared vision of your unique family legacy.

While building and carrying forward your family legacy may come with some challenges and responsibilities, it is a gift that will enrich the lives of your family and help them navigate their lives with purpose and intention.

For more information, contact your Fifth Third Private Bank advisor.