Truist-Perspectives-AUGUST_2021

Insights: Family
Here are three reasons why creating a
mission statement can be beneficial to you
and your family.
1 Preserve your family legacy.
A family mission statement can be an essential navigation
tool in wealth planning, particularly in light of
wealth-transfer data: According to a 2003 study by Roy
Williams and Vic Preisser, the odds of sustaining wealth
across three generations are as low as 30%. Lack of
communication or mission, unprepared heirs, and lack of
strategic planning within the family can be contributing
factors. Financial literacy and communication are key in
transferring generational wealth to your kids. By creating
a welcoming environment for open and honest communication,
your family can stay better connected and work
toward successful wealth preservation.
2 Get everyone on the same page.
For a mission statement to be successful, it must resonate
for everyone within the family. Plus, allowing your
children to have a seat at the table for the conversation
is a great way to strengthen relationships and provide a
learning opportunity for everyone involved.
“This open and honest communication between family
members leads to greater trust, which helps prevent
conflict,” say Grieve and Medici.
Everyone within the family must feel that their input is
accepted and appreciated. But it’s important to not rush
the process. In fact, the process can be just as important
as the end result. It can be exceptionally gratifying,
revealing, and productive to hear everyone’s point of
view and to think through what values will drive your
family’s decisions and choices.
3
Guide you through conflict and tough decisions.
“In the end, families will be rewarded with far more than
a piece of paper,” say Grieve and Medici.
By creating a mission statement, you’re outlining your
belief systems as a family unit in a way that’s clearly understandable
to everyone. Should a tough conversation,
decision, or conflict arise, you and your family can look
back to your mission statement and remain true to your
defined values to help guide your path forward. Consider
your mission statement a covenant that preserves your
family values and a compass that keeps your family on
track to hit their goals.
To learn more about why family mission statements are
beneficial in legacy planning, read Grieve and Medici’s
white paper: “Mission statements for families of wealth:
Identify the values and reap the reward.”
August 2021 | 9