For
over 25 years I have advised wealthy families in tax and estate planning matters.
In my experience, many, if not the majority, of these families, have given
little thought or effort to preparing future generations of family members
to receive and properly manage the family fortune until it is too late. This
failure to prepare children and grandchildren to receive an inheritance can
not only cause the loss of a family’s wealth, it can also destroy an
heir’s productive life and undermine his or her personal happiness.
It has become increasingly clear with each passing year that our society has
failed to acknowledge and address the special problems experienced by the
very people who are fortunate enough to live out the American dream of affluence.
Although financially successful, these people learn late in the game, too
late in most cases, that they lacked the knowledge, skills and understanding
needed to prepare their own children to fully enjoy the benefits of their
success. The children ultimately suffer most.
This dilemma is so common in our society it has been given a name - Affluenza.
Described as a dysfunctional relationship with money, affluenza generally
refers to the liabilities attached to inherited wealth (including the expectation
of inheriting wealth). The money that buys power, privileges, and luxuries
can just as easily inhibit a child’s psychological development and damage
a child’s self-concept. An individual suffering from affluenza often
displays a range of symptoms including immaturity, boredom, selfishness, lack
of motivation and work ethics, lack of self-discipline, a sense of entitlement,
alienation, aimlessness, rebelliousness, and suspiciousness. For these people,
net worth has become a substitute for self worth.
Sociologists, psychologists and educators have only recently begun to write
about this potentially life-destroying condition and to suggest ways for wealthy
families to protect their children from its effects. One of the strong voices
speaking out and offering guidance to wealthy families is Dr. Lee Hausner,
a fourteen year-veteran of the Beverly Hills, California school system and
author of Children of Paradise. The subtitle of her book is “Successful
Parenting for Prosperous Families” and, with her permission, we have
adopted those words to summarize the purpose and work of the Family Legacy
Foundation.
To inform parents about affluenza and how it can be prevented, the Foundation
is offering a series of parenting retreats led by top experts on the subject.
In an exclusive resort environment, parents can explore topics of critical
interest to those who have achieved financial success and want to match that
success with the total experience of prosperity in all aspects of life for
all members of their family. However, the retreat is only the beginning. The
Foundation’s goal is to affect meaningful change in the lives and families
of participants. To accomplish this, certified family coaches are available
for follow-up strategic planning sessions to help parents create and implement
an anti-affluenza plan tailored for their family.
