As I have touched upon in my previous columns for AdvisorOne, helping another person to identify the stories, values, life lessons and experiences that make them unique is the starting point for all successful heritage planning. That occurs through an interview process called Guided Discovery. Many topics are covered during the Discovery discussions that can have an impact on how a person or family thinks about and relates to itself. Your clients can arrive at a new level of clarity about those they love and the causes they believe in. Because of this, they can begin to implement new structures for preserving this unique identity in the future.
After a person's treasure chest of memories and life lessons has been opened through Guided Discovery, these gems need to be shared. The first form of this sharing is expressed through a document that we like to call a Heritage Statement. A Heritage Statement is a meaningful and compelling declaration of a person's story and values, coupled with their vision for sharing these values with future generations.
A Heritage Statement is unlike the other traditional planning documents a family has already produced. It is not something that was created in secrecy and then hidden away in a vault awaiting an author's death, a surprise to be sprung on survivors. It is a living, breathing chronicle, something that is a profound and lasting document, carefully crafted to be just as relevant 100 years from now as it is today. The Heritage Statement should express who the client is at the deepest levels, what they believe, and where they have come from; and it must clearly communicate a vision that will inspire, encourage, and positively challenge their family.
A Heritage Statement can comprised many pieces. Each document needs to be constructed in the voice and with the personality of the people who are building it: It is a personal document. That said, there are certain components and topics that typically receive coverage to at least some degree in a Heritage Statement.
Why the client is writing the Heritage Statement. When a person is handed a document that says "The John and Jane Smith Family Heritage Statement" at the top, they might be wondering exactly what the heck this is. It's important to begin with an opening statement that speaks to prospective readers (i.e. family, friends, advisors, etc.) and explains what the document is: how we got here, this is what we believe, this is what is most important to us, this is what we hope to see in the future.
The client's story. This section of the Heritage Statement probably seems the most self-explanatory. Parents (or grandparents) should keep in mind that children have not necessarily heard the story of how they met and fell in love, for instance, or the most difficult challenge they have faced. Areas like childhood, young adulthood and parenthood should be covered, to ensure that the family's history is recorded. It is important to note, though, that the document must not only relate the story of the client, but do so in a meaningful manner. The material included needs to be presented in a manner that is authentic and accessible.
The client's core values. The most significant values—the principles that have guided your client through times both thick and thin—should be listed, along with examples of why and when those values mattered most.
Introduction of guidelines for effective Family Governance. The ultimate goal of Family Governance is to create a high-performance, multi-generational team in which the succeeding generations are participating in decision making, leadership activities and hands-on money management long before their parents pass on.
The successful family governance process focuses on teaching the family to communicate and work together effectively. It also mentors the children through real-world experiences under the guidance of other family members and advisors—which equips them to succeed.
