Trends and buzzwords are abundant in this business and one topic that’s getting a lot of traction these days is the idea of using wealth to leave a mark on the world. In other words: legacy. Wealth creators and wealth holders are curious about using their assets to create change and opportunity for the people and causes they care most about. They want professional help evaluating options and taking action.
Most dictionaries define “legacy” as something handed down from the past or at the time of death. Hollywood and the popular media have further shaped a largely positive image for legacies, sometimes about exerting control (often posthumously) and nearly always about money. But thinking about legacy in such parochial terms can be limiting.
Richard Orlando, founder and CEO of Legacy Capitals, believes “we are all creating a legacy whether we are trying to or not” because what we do and say contributes as much, if not more, to our legacy as the trusts and bequests included in our wills and estate plans. If an intentional legacy is the goal, he says, then “we should ensure that the way we live and steward our wealth best reflects our intended legacy. Too much focus is on what assets we leave to others when we are no longer here. It’s also about how we live, not just what we leave behind.”
Orlando, who has a doctorate in family systems, has pioneered the concept of spiritual capital as a core component of net worth and says one of the most challenging—and frequently ignored—aspects of family wealth is the place where the money, the people and the values intersect. In his new book, Legacy: The Hidden Keys to Optimizing Your Family Wealth Decisions, he explores how values, purpose and faith can be aligned to help families prepare and plan for a happier and more fulfilled future.
Advisors can play a vital role in helping families coalesce around their key priorities, but it requires balance among the quantitative and technical facets of private wealth management and the personal and intangible issues driving each family member. The optimal solutions are those that make it easier for family leaders to communicate their vision and beliefs across generations, and that can help simplify the difficult and emotional decisions that are associated with long-term planning.
The late, great Nelson Mandela offers another way to think about your role in the legacy planning process: “What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.”
