Building Sustainable Success Across Generations: Intent Is Irrelevant
- Feb 13
- 3 min read
By Cecily Welch, CPA, CFP®, PFS
The Accountant You Can Understand ®
You’ve probably heard the saying, “The road to hell is paved with good intentions.” When it comes to family wealth and business succession, the same principle applies. Matriarchs and patriarchs often express heartfelt wishes—passing down the family business, ensuring success for their children, and creating a lasting legacy. But without a written plan aligned with current (tax) laws and the guidance of professional advisors, those intentions rarely translate into reality. Too often, a thriving business for one generation becomes a failed experiment for the next.
Why Intent Alone Fails
Intent doesn’t override operating agreements, beneficiary forms, state intestate laws (dying without a will), or a written will. Intent also doesn’t resolve family disputes. Further, a business that depends entirely on its founder will die when they do. Sustainable success requires systems, scalability, and structure—none of which happen by accident.
Professional advisors aren’t a cost center; they’re an investment by creating frameworks, including:
Buy/Sell Agreements and Compensation Structures for family members who work in the business and for those who don’t.
Clear On and Off Ramps for family participation and ownership.
Retention Incentives for key employees who are critical to continuity.
Documents that comply with state and federal tax laws to minimize transfer taxes, capital gains, and tools for resolving conflicts.
Ensuring pathways exist for succession (i.e. law firms can only be passed on to other lawyers)
Planning Beyond Paperwork
True multi-generational planning requires understanding people, anticipating change, and non-intuitive considerations such as:
Individualized Strategies: Treating children equally doesn’t mean treating them the same. Succession planning should reflect each child’s strengths, interests, and abilities.
Conversations: Replace dictation with dialogue. Encourage family members to be self-centered. Yes, you read that right.
Selfish is trying to get what you want regardless of other people. Self-centered means advocating for what you need and want. Through honest sharing of needs and wants, there’s an increased likelihood of successful transitions.
Independent Advisor Relationships: Allow children to build trust with family advisors separate from their parents. Yes, sometimes this means the parent paying for separate engagements for their children.
Communication: Share long-term plans with key employees to maintain loyalty and stability.
Future-Proofing: Discuss what “family” means in your plan. Consider adopted children, stepchildren, remarried spouses, etc.
Flexibility Is Possible
Many business owners hesitate to formalize plans, fearing permanence. In reality, most structures allow for amendments when circumstances change. But if you don’t create a plan, the state will—and its version rarely aligns with your goals. Anyone wishing to have financial independence ignores taxes at their peril. And rules regarding wealth transfer are constantly changing – requiring frequent updates. Unfortunately, no, the old strategy of set it and forget it is no longer possible for taxes and estate law (yes – you will have an estate when you die – ‘estate’ isn’t reserved for the wealthy - you may not have estate tax, but that doesn’t mean you don’t have an estate)
Of course it’s about the money – but why?
Wealth is about choices. Building a legacy means respecting that your family’s choices may differ from yours. Remember: earning wealth requires different skills than maintaining it and thus consider education, opportunities, learning curves and pathways for the next generation to learn and lead. And maybe, find outside success while still maintaining ownership.
The Bottom Line
Intent is irrelevant without action. Sustainable success demands written plans, professional guidance, and ongoing communication. If you want your business and wealth to outlast you, start today—because doing nothing is still a plan, and it’s the state’s plan, not yours.
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