Issue link: http://read.uberflip.com/i/1251420
WWW.POTATOGROWER.COM 17 WATER than THE FAMILY LEGACY: WHAT MATTERS MOST Succession is one thing. But questions around the family's legacy can be challenging, especially when the wealth originator is no longer around. "It's important to look at the situation from a variety of perspectives," says Mike Salisbury, an independent consultant working with families that farm. "I recommend dealing with three issues: mission, vision and culture. Mission identifies a three- to five-year objective. Vision clarifies a long-term plan. Culture is what you stand for. These all need to be aligned." "Everyone thinks they know what Dad or Grandma would've wanted, but they each remember things differently. It can get bitter, even in close families," says Loumbas. GENERATIONAL THINKING A common issue is stewardship is how to preserve and grow either the business itself or its assets. "You have to think really long- term—generations into the future," says Salisbury. "Suppose the siblings agree on a plan at the outset. Then as years go by, they get married. Are their spouses on board? Maybe not. That's uncomfortable; do you side with your spouse or your sibling? Then add their children into the mix, each of whom will have their own views. With multi-generational wealth, you're planning for people who aren't even born yet." Philanthropy is another area where viewpoints may not align. "People want to make significant gifts to organizations they are passionate about, of course. But passions run both ways," says Loumbas. "Say I want to give money to the local hospital who took exceptional care of my mother-in-law. But your husband wants to sue them because he thinks a doctor misdiagnosed your child's illness. Both opinions are understandable and deeply held. It could lead to a relationship-altering argument that cannot be resolved." HEADING OFF CONFLICTS BEFORE THEY START To avoid this kind of situation, the wealth originator can establish ground rules for making decisions. Should there be a "majority rules" vote? Or should decisions require consensus? "It's critical to put a process in place, in writing," says Salisbury, "and it's best to do it when the wealth originator is still alive." Two things he stresses: a specific communications platform, and a system