— RALPH WALDO EMERSON
In the complex world of financial services, the term “family summit” might not be commonly considered—but its significance in preserving generational wealth is undeniable. Family summits integrate the financial and psychological aspects of wealth management and enhance wealth and legacy protection, growth and optimization. Here at Oxford, we recognize the importance of these family summits in maintaining the integrity of family legacies.
At its core, a family summit is a purposeful gathering of family members, often spanning multiple generations, along with advisors, such as attorneys and CPAs. Its primary objective is to facilitate open and honest discussions about family wealth, legacy, values and financial and estate planning strategies. While the specific structure of these summits can vary widely depending on the unique needs of the family, the essential goals remain consistent:
I. Fostering trust, alignment and involvement.
II. Facilitating communication and dissemination of family values and legacy.
III. Encouraging understanding and appreciation among family members.
Industry research underscores the critical need for thoughtfully designed and recurring gatherings, particularly for families of significant wealth. Alarming statistics reveal that by the time a third generation passes, a staggering 90 percent of family wealth is lost. This loss is rarely due to financial disaster, erosion from taxes or even missed planning opportunities—rather, most wealth dissipation stems from a lack of trust, poor communication and inadequate preparation of heirs. Obtaining alignment amongst generations is of paramount importance for wealth preservation.
All too often, the first generation creates the wealth, but subsequent generations lack the necessary understanding and appreciation of the wealth to protect, grow and optimize it for the future. This can lead to a generation unprepared to be effective stewards of the family’s wealth and legacy, which oftentimes leads to reckless spending and mismanagement.
Oxford’s distinctive approach to family summits provides a forum and structure for heirs to comprehend the family’s financial history and values, and for each family member to understand and appreciate the family legacy, regardless of whether they are the wealth creator or an heir. At the outset of the Oxford family summit process is the creation of a Family Mission Statement. This mission statement provides an opportunity for collaboration amongst all generations based on open dialogue and expression of how wealth was created, how it continues to grow and the impact it has on the family, individuals and, in many cases, the broader community. Oxford has found that the transparent conversations that occur during the initial creation of the Family Mission Statement set the stage for success by obtaining alignment among family members and identifying shared values.
Family Summits serve as a platform for information sharing to provide a clear understanding of the family’s financial journey. Each summit is tailored to provide heirs with pertinent information to prepare all generations to steward the family’s wealth into the future in alignment with the Family Mission Statement. Specific and general topics such as governance, philanthropy, the family business(es), investments and spending, family estate planning and educational topics are often included. These topics are oftentimes geared towards educating those participating in the family summit.
Family summits represent a blend of financial planning and psychological well-being within families of significant wealth. These gatherings are essential for bridging the gap between generations and ensuring that wealth is not only preserved but is also understood and appreciated. Oxford plays a pivotal role by offering guidance and educational resources, providing structure and tailored summit agendas and even hosting the event. Oxford’s commitment to facilitating these summits underscores our dedication to the long-term prosperity of our clients and their legacies for generations to come.
