Why Your Family Needs a Mission Statement

You likely understand that you “should” have a will or a trust, but have you ever discussed with your family the reason your money exists in the first place? A straightforward family mission statement, paired with a thorough estate plan, can significantly enhance the chances that your wealth and relationships remain strong for generations.

You dedicate your life to working, saving, and creating a future for your loved ones. However, studies indicate that approximately 70% of affluent families lose their wealth by the second generation, and nearly 90% by the third.

This type of loss is often not merely due to poor investments. It stems from something more profound: a lack of shared purpose, a missing narrative, and an absence of a collective plan.

In this article, you will discover:

● What a family mission statement truly is (and what it isn’t).

● How it collaborates with your legal planning to safeguard both your finances and your relationships.

● Easy steps to create your own family mission statement, even if you don’t consider yourself ultra-wealthy.

Why Money Alone Won’t Keep Your Family United

Many individuals think that leaving behind “enough” money along with the appropriate legal documents means your job is finished. Sadly, real life doesn’t function that way.

Studies on unsuccessful wealth transfers indicate that the majority of family wealth vanishes due to communication breakdowns, a lack of trust, unexpressed expectations, and heirs who are not ready for the responsibilities. This is the human aspect of planning – the part that often goes unmentioned. Instead, we usually concentrate on the paperwork – a will, trust, power of attorney, and health care proxy. We fail to recognize that real people are involved.

However, this is where disputes frequently arise. Adult children might interpret your intentions differently. A surviving spouse may feel lost without direction. Siblings might disagree on how assets should be allocated or what “fair” truly means. Even in loving families, grief can amplify past wounds, foster misunderstandings, and lead to choices driven by fear instead of clarity.

While a family mission statement won’t eliminate every conflict, it provides your loved ones with a foundation: a common understanding of the purpose behind your resources and how you envision them being utilized. When you combine that shared goal with an estate plan that keeps your family out of court and away from disputes, you significantly enhance the chances that your wealth and relationships will endure for generations.

Transforming Your Estate Plan into a Family Guidebook

A family mission statement is a concise written expression of your family’s values, objectives, and aspirations regarding life, finances, and legacy. It is not a legal document and does not substitute for your will or trust. Rather, it provides context and guidance for the legal framework you establish.

Consider it this way. Your legal documents outline what happens to your assets. Your family mission statement clarifies why and how you envision those assets being utilized.

Our estate planning approach is centered around this concept. The aim is not just to produce a collection of documents. The aim is to develop a plan that genuinely benefits the people you care about when you are unable to be present. This encompasses:

● A thorough inventory of your possessions, ensuring nothing is overlooked or forgotten.

● Clear guidelines on who is responsible for what, and how to seek assistance.

● Regular assessments to ensure your plan adapts to changes in your life, the law, and your assets.

Your family mission statement complements all of this. Here’s how it can enhance your plan:

● For blended families, it can help clarify your commitment to caring for children from previous relationships as well as your current spouse, ensuring that everyone understands your intentions.

● For young adult children, it can shed light on why their inheritance might be placed in trust, or why distributions are linked to education or employment, making them feel supported instead of controlled.

● For all families, it provides a common “north star” that you can refer back to during family meetings, throughout life, and after a death or incapacity.

When clients collaborate with us, we assist them in understanding what will happen to their assets and loved ones if they become incapacitated or pass away, and then we create a plan that aligns with their values, goals, and family dynamics. The family mission statement is an integral part of that discussion.

Once you grasp how these elements connect, the next step is to articulate your mission on paper in a manner that feels authentic and practical, rather than rigid and corporate.

Simple Steps to Create Your Own Family Mission Statement

You don’t require $50 million, a private banker, or an official ‘family office’ to take advantage of a family mission statement. All you need is the openness to be truthful about what matters to you and a little time for discussion.

Here’s a straightforward way to begin:

Identify your fundamental values.

Dedicate some time to jot down the words that resonate with you the most: concepts like generosity, learning, faith, adventure, service, or stability. Reflect on this: If my children could recall three key things about my principles, what would they be?

Link values to finances.

For each value, describe how you wish for money to enhance it. For instance:

● If you appreciate education, you might want to allocate funds for schooling, training, or launching a business.

● If you cherish family time, you may prefer to finance yearly vacations or reunions rather than accumulating more possessions.

● If you believe in generosity, perhaps you wish to support particular causes or inspire your children to donate a portion of their earnings.

This is where your mission begins to influence how your trust, beneficiary choices, and overall strategy are crafted.

Create a rough draft.

Aim for three to six sentences. Use straightforward language. For instance:

“In this family, life is a treasure and relationships are paramount. Money is meant to enhance education, meaningful experiences, and generosity, not to foster entitlement. We strive hard, support each other, and utilize our resources to improve life for those we care about and the communities we impact.”

Your statement will be uniquely yours, but it should resonate enough that you feel comfortable sharing it aloud with your loved ones.

Discuss it during a family gathering.

The true strength of a family mission statement lies in the discussions it sparks, not merely in the phrasing. Think about bringing together your spouse, partner, and adult children for a casual “family meeting” during dinner or on a weekend afternoon. Present your draft, seek their feedback, and encourage their contributions. The aim is not to engage in a debate, but to foster connection and understanding.

Link it to your legal strategy.

After establishing a mission statement, either create or revise your estate plan. We can assist you in determining whether your existing plan, or the one you still need to establish, truly aligns with your mission. If your mission emphasizes that “family comes first,” yet your legal plan sets your family up for disputes in court, adjustments are necessary.

As time goes on, you can revisit your mission statement during regular family check-ins or when you assess your plan with our help. Consistent reviews are crucial because your family dynamics will change, and your mission will adapt. However, by documenting it and tying it to a plan that functions when you and your loved ones need it, you provide your family with a guide they can follow long after you are no longer here.

How We Can Assist You

You put in a lot of effort to build your wealth, and it’s important to ensure it doesn’t vanish within a single generation. You also care deeply about your family, wanting to spare them from confusion, disputes, or a legal process they must navigate on their own.

Creating a family mission statement is a fantastic beginning, but its true effectiveness is realized when combined with a Life & Legacy Plan. This plan helps keep your family out of court and avoids conflicts, providing your loved ones with a reliable advisor to consult when challenges arise.

If you’re prepared to align your finances, legal strategies, and core values, we encourage you to book a 15-minute discovery call. In this free call, you can ask questions, discover our process and flat-fee options, and determine if a Life & Legacy Plan is suitable for you and your loved ones.

Schedule a complimentary 15-minute consultation to learn more.

This article is a service of Kristen Wong of Seasons Estate Planning, APC, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.