5 minThe sensitive touchy subject that is money
When it comes to passing on wealth, the conversation often goes beyond the figures and touches on the family’s history, values, role and future. Interview with Anne Goedert, Key Clients Adviser, supporting families and entrepreneurs to protect their wealth and maintain harmonious family relations.
What is Family Practice?
Our support is tailored to the needs of families considering inheritance or succession options. In my role as a facilitator, I work with clients, helping them to navigate the process of making milestone decisions – on an overall plan for passing on their wealth or business, family governance, fairness criteria, and philanthropy.
We first help the family to step back and take a more objective view of estate planning, their objectives and their “family system”. We then suggest discussing the plans with everyone involved, not just the generation that currently holds the reins – the Present Gen – but also the Next Gen.
We bring everyone together around the table so they can express their wishes, expectations and fears, and listen to what the others have to say. This is because perceptions can vary widely from one family member to the next. This approach encourages the family to work together to find the best solution for transferring their wealth in a way that works for both the family and the estate, which has often been built up over several generations.
What shape does the initial consultation with you take?
The first meetings are free and open discussions where everyone has the opportunity to weigh in with their thoughts, wishes and doubts. The next step is to clarify their intentions, identify sticking points, and devise a roadmap towards a shared family goal, one that takes the interests of each family member into account. If a business is at stake, then operational interests take priority; if family dynamics are tricky, we steer the conversation. Our support continues until the points that have been agreed are actioned, which could include drafting a family charter. If need be, we direct the family to our programmes.
I try to leave with consensus on what needs to be achieved and on the first practical steps to take: who should be involved in the planning? In what context? How fast or slow?
What sensitive issues have you identified during meetings with families?
“Dispossession” is one. This is a situation where money or status end up mattering more than the person's own choices. The tell-tale signs are a reluctance to talk about fairness, fear of “trapping” the children, or the temptation to use the gift as leverage. To help alleviate this feeling, it’s important for the parties to clearly communicate their expectations and to distinguish between what relates to the estate or more specifically to a business (long-term sustainability and governance), to the family (values and fairness), and to the rules of dialogue in the family (who speaks to whom, when and how).
Do you support clients in passing on their business? If so, what are the main lessons you have learned?
A business transfer is more of a process than a single act. The successful cases have three things in common:
- Planning (start early and explain)
- Explicit framework (roles, rules and fairness criteria)
- A realistic timeline (clear stages and regular reviews)
The process involves the next generation. Our Next Gen programmes are designed as phased and structured programmes to inform and resource the next generation, but without making assumptions about their future. In practical terms, the approach combines personal development, learning, testimonials from family entrepreneurs and dialogue with peers. Our support includes setting conditions for access to the business, drafting an onboarding process and regular inter-generational feedback sessions. The quality of dialogue is crucial: an atmosphere of trust, a common language, information sharing and accurate reporting all help the family to tackle unspoken issues.
Finally, we aim to make sure clients’ intentions are aligned with the options available: partnership agreements, establishing governance bodies, etc. Asset transfers or gifts make sense only inasmuch as they further the family’s plans or ensure the continuity of the business. With a clear timeline and light-touch guidance, the more transparent the process, the more tensions fade away. In this way, the decision brings peace of mind to everyone involved, including those outside the family, and restores people’s freedom to act. Careful preparation and organisation of each stage in the transfer process make for family harmony.
With a clear timeline and light-touch guidance, the more transparent the process, the more tensions fade away. In this way, the decision brings peace of mind to everyone involved, including those outside the family, and restores people’s freedom to act.
When does philanthropy become useful?
When it clarifies what the money is for and unites people around a common purpose. We never suggest philanthropy “for the sake of it”, only when it makes sense in terms of the family's values and long-term plans.
We help to clarify the engagement project and choose the vehicle or method best suited to carrying it through. A well-thought-out philanthropy project can open up the conversation and move it from the purely financial to the overarching objective.
Do you have any examples to share that illustrate your approach?
In one family of entrepreneurs, everything was blocked by a sense of injustice. To overcome this, we worked together to set fairness criteria and a transfer schedule. The resulting clarity calmed the situation and put the business on a secure footing for the future.
In another case, the siblings couldn’t agree on each person’s role. We linked the asset transfer to a joint philanthropic project, with a simple governance structure and annual monitoring. Differences were overcome by imbuing the process with meaning.
In both these situations, the framework (rules, roles and pace) made all the difference.
Why did you support and collaborate on the book, “L'argent, poison ou trésor” (Money – poison or treasure?)
“L'argent, poison ou trésor” resonated with me. Money is never neutral. Depending on the context and the words you choose, it can either be leveraged for good or become a source of tension.
I have also collaborated with Philippe Depoorter for many years on these topics, working with very wealthy families on transferring businesses to the next generation – and on all the sensitive issues related to money and passing it on. It seemed natural for Banque de Luxembourg to be involved in this project.
This book is for anyone who wants to clarify their relationship with money and feel more comfortable about their wealth management decisions.
It came about from a collaboration between Philippe Depoorter, Étienne Eichenberger and Nicole Prieur and combines insights from the worlds of wealth management, philanthropy and clinical practice. Based on fourteen anonymised interviews with high-net-worth individuals, it underscores the type of tensions that come up again and again (possession/dispossession, fairness, money’s symbolic power) and suggests topics for discussion (governance, inheritance, philanthropy). The book is more of an invitation than a set of instructions. It helps to clarify our relationship with money and guides the reader to make calm and informed decisions aligned with their values.
Where can you get your copy of “L'argent, poison ou trésor”?
Simply enter your details in the form below to order your copy directly.
Supported tailored to your needs
To arrange a confidential consultation about passing on your wealth or business, setting up family governance or putting together a philanthropic project, contact Anne Goedert, Key Clients Adviser.
