Two factors to keep in mind for a successful meeting

Published in the Nov. 26 – Dec. 9, 2014 issue of Morgan Hill Life

By Dan Newquist

Dan Newquist

Dan Newquist

It’s Thanksgiving and for many people that means family gatherings, often with relatives only seen once or twice a year. Fortunately, I see my family fairly often and for the most part we enjoy each other’s company and the time spent together treasuring old traditions and building new memories.

Often this time of year a client calls to say, “The whole family will be in town for the holiday, it might make sense to have a family meeting and get everyone on the same page with regard to our situation.” My response is always something to the effect, “This is a great idea, when it comes to making decisions and plans about the future that impact you and your loved ones, communication is key and a family meeting is a productive way to do this. However, we must be properly prepared.”

As a key advisor, often to the older generation, I am always in favor of meeting with the adult children in the family with the underlying purpose to encourage transparency, an understanding of the older generation’s wishes, and build communication and trust. You, as the elder family member, are able to discuss issues and topics of consequence and explain how and why decisions have been made and experience how your family reacts in real time.

Two key factors to keep in mind for a successful family meeting: Where and when to meet

Ideally, I recommend the meeting be held at neutral location. This allows for a productive discussion, free from distraction. Scheduling the meeting for a day or time that is mutually agreeable for all is important as well to minimize anxieties and frustration. Videoconferencing or teleconferencing can be used to include family members who cannot be present. If possible, it may be appropriate to have your attorney present should legal questions arise. (Please note that the attorney will likely charge their hourly rate to attend the meeting.)
Clearly stated purpose and agenda

In my experience, the purpose (or general theme) of most family meetings centers around one or all listed below and are often spread across multiple sessions:

• Communicate to family and heirs your plans and intentions around the distribution of your assets and define the roles and responsibilities of various heirs. This will also include general instructions and the location of key documents, burial wishes and preferences and intentions for tangible personal property, including pets.

• Communicate to family and heirs your plans on how and where you will live as you age. A discussion of your choices is typically followed by a conversation around family member support, open discussion, Q & A, and a determination of action steps if needed.

• To provide a forum where you and your advisor discuss the investment philosophy and approach to investing and managing your wealth. This includes an overview of your advisor’s role and investment philosophy followed by your specific investment strategy including goals, objectives, risk tolerance, asset allocation, and current investments. An orientation to existing reporting and communication is followed by open discussion, Q & A and determination of action steps.

The family meeting is an essential step for your loved ones to hear your perspective and about the plans you’ve made. You, as the elder family member, can discuss issues and topics of consequence and explain how and why decisions have been made and experience how your family reacts. Preparing a well-organized and concise agenda and having cohesive materials to share with your family will produce a discussion that will give you comfort and peace of mind by knowing there is a collective understanding of your plans and wishes.

This article not intended for specific tax or legal advice.

DAN NEWQUIST, CFP®, AIF® is a Principal Investment Advisor Representative with RNP Advisory Services, Inc., a registered investment advisor, in Morgan Hill. He can be reached at 408-779-0699 or [email protected]. Securities offered through Foothill Securities, Inc., member FINRA/SIPC, an unaffiliated company.