Making Family Preparations and Proper Wealth Planning
The family had always had a comfortable lifestyle. As the years went by and the family business prospered, the parents began splurging a little as the quality of their life improved. One day, the founding brothers (John and Steve) were approached with an offer to buy their business at a price that was difficult to refuse. Once the two brothers sold the family business, an enormous amount of sudden wealth flowed their way.
John immediately set up systems for the distribution of most of the windfall to his wife and children. Steve and his wife decided to designate the distribution of their windfall in this fashion: several large donations to their favorite charities, a portion set aside for the creation of a family foundation, a major financial gift to a longtime family friend, and a significant (although small in portion to their cousins) amount to their children.
John’s children immediately began planning great vacations and purchasing luxury gifts for themselves. Steve’s children were devastated and hurt. Instead of feeling grateful, they came away feeling that their parents must not trust or love them as much (as Uncle John loved his children).