Mastering Family Governance: Navigating Wealth and Legacy with Susan Schoenfeld, CEO of Wealth Legacy Advisors

In this engaging podcast, Kurt Thoennessen, CAPI, the host of the Private Client Risk and Resilience Podcast, invites Susan Schoenfeld, CEO and founder of Wealth Legacy Advisors, to explore the intricate world of family governance and communication within high-net-worth families. Kurt explains his role as a certified advisor in personal insurance, emphasizing the importance of addressing risks and challenges faced by wealthy clients. Susan, a self-proclaimed "recovering attorney" and CPA with an MBA, shares insights about her firm, Wealth Legacy Advisors, and its mission to guide ultra-high-net-worth families in navigating the human aspects of wealth.

The discussion delves into the concept of family governance, highlighting its role in shaping how affluent families make decisions, establish structures, and plan for future generations. Susan's real-world examples illustrate the significance of family governance in preventing potential conflicts and chaos as families grow and evolve. She describes various techniques, such as family councils and family assemblies, which provide frameworks for decision-making and representation within wealthy families.

The conversation emphasizes the critical role of effective communication in addressing complex issues related to wealth, legacy, and family dynamics. Susan and Kurt explore the challenges faced by affluent families, from raising children in an atmosphere of wealth to navigating philanthropy and addressing concerns about potential heirs' marriages and creditor claims.

Throughout the transcript, Susan underscores the value of addressing these "soft issues" in wealth management, demonstrating how caring about clients' holistic well-being fosters lasting relationships. This podcast transcript offers profound insights for advisors, highlighting the importance of focusing on the human aspects of wealth when assisting high-net-worth families in building legacies and maintaining family harmony.

Transcript

Here are the educational points identified in the transcript:

1. Introduction to the Podcast and Host's Background: The transcript begins with an introduction to the podcast, the host (Kurt Thoennessen), and his background in personal insurance and risk management for high-net-worth clients.
2. Guest Introduction: The guest, Susan Schoenfeld of Wealth Legacy Advisors, is introduced along with her background in family communication and governance.
3. Definition of Family Governance: Family governance is defined as the process of how a family makes decisions, establishes structures, and creates a framework for managing family matters, especially regarding wealth, inheritance, and decision-making for future generations.
4. Importance of Family Governance: The discussion highlights the significance of family governance, particularly in wealthy families, to ensure effective decision-making, preservation of wealth, and the smooth transition of leadership and assets to the next generation.
5. Different Techniques of Family Governance: Various techniques of family governance are discussed, such as family councils, family assemblies, and family constitutions. Each technique serves a different purpose in facilitating communication and decision-making within the family.
6. Challenges in Communication: The importance of effective communication within wealthy families is emphasized, and the challenge of assuming that communication has occurred when it may not have is discussed. George Bernard Shaw's quote, "The single biggest problem in communication is the illusion that it has taken place," is mentioned.
7. Role of Family Legacy Advisors: Susan Schoenfeld's role as a family legacy advisor is explained. She helps families address communication and governance issues, particularly those related to the human side of wealth management, rather than focusing solely on financial and investment matters.
8. Focus on Human Issues of Wealth: The transcript stresses that the so-called "soft issues" or "human issues of wealth" are often more critical to wealthy families than financial, tax, or investment issues. These human issues include parenting in a wealthy environment, addressing concerns about heirs, and philanthropic endeavors.
9. Building Trust and Relationships: The importance of building trust and relationships within the family, as well as with advisors who demonstrate genuine care for the family's well-being, is highlighted.
10. Long-Term Client Relationships: Advisors who prioritize the family's concerns and well-being over short-term financial gains can establish long-term client relationships.

These educational points revolve around the topics of family governance, effective communication, and the human side of wealth management in high-net-worth families. They emphasize the significance of addressing these aspects to ensure the well-being and long-term success of wealthy families.