Index

achievement, individual, 31, 89

advertising, 56–58, 78–79

advisors

building Family Bank and, 121

estate-planning, 79

failure of, 18–19

financial, 74–77, 93

scare tactics, 81, 84

selecting, 123–134

succession plan failure, 18–19

trusts, 88–91

affluence, 59

Allarcom Pay Television Limited, 7

allowance, monetary, 28

apartheid, 17

“A Reflection on Modern Psychology and the

Question of Family Relationships” (Hughes), 67–68

Aronoff, Craig E., 106

aspirations. see dreams, personal

assessment, of family, 63

assets. see also under financial assets; human assets; intellectual assets

costs of maintaining, 16

development, 42

involuntary loss of, 135

loss of control of, 8–11

reformatting, 22

transitioned, 11

autocracy, 104

Baldwin, James, 34

Ballard, William (maternal grandfather), 1–2

Bancroft family, 71–72

banking system, 54–57, 92

“big banks,” 89, 93–94

bankruptcy, 16

beneficiaries

communication, 43

control of, 87

heirs, unprepared, 94

mentorship, 88

trusts protecting, 86–87

Berlin Wall, 17

“big banks,” 89, 93–94

broadcasting industry, 7, 22

brochures, estate-planning, 6

Canada Revenue Agency (CRA), 80

Canadian Association of Broadcasters Hall of Fame, 8

Canadian Business Hall of Fame, 8

Canadian Satellite Communications (Cancom), 7

capital. see financial capital; human capital; intellectual capital

capital gains, 79, 82

Cellular Vision, 7

Cervantes, Miguel de, 1

character traits, 35

charge-out rates, 24

charitable organizations, 99–101

charity, 98–99

CKNW radio station, 2

communication

about money, 38–39

advisors and, 129

beneficiaries, 43

breakdown, 12–14, 43, 94, 136

character traits, 52

listening, active, 48

open, 27

sibling cooperation, 107–108

values, shared, 33

vision statement and, 40–41, 49

communications companies, 22

computer programs, 75–76

confidence, 22, 48

confidentiality, 87, 127, 131–132

conflict

advisors and, 125

fairness and, 28–29

family feuding, 11, 90

shared vision and, 17–18, 40, 48–49

control

assets, loss of, 8–11

beneficiaries, 87

family members, 44

ownership vs., 37, 61

parental, 27, 42

sharing, 22–23

structures, 27, 61

trusts, 88–91, 116

“cookie-jar kids,” 46, 58–60

corporate structures, 43, 47

cottage, family, 79–85

council of elders, 105

cousin consortium, 109–110

credit, use of, 16

credit cards, 56–58

culture, values and, 47

data mining, 123–124

debt, personal, 46, 53–54

Decisions (Treliving), 121

democracy, 44

dependency, 28

designations, professional, 127–128

determination, 22, 35

dictatorship, 104

dignity, 24

disagreements, 14

discussions, family, 14, 47, 74, 96–98, 115, 125

dog food, 1–2, 22

Don Quixote (de Cervantes), 1

Dow Jones & Co., 72

dreams, personal, 25, 67–68, 71, 136–137

earning a voice. see voice, earning a

education, money, 65–66

education, post-secondary, 18

education, pursuit of, 51–52

education loans, 115

Einstein, Albert, 19

elders, role of, 111–112

emotional well-being, 24, 36

employees, 34

enhancement loans, 115–116

entitlement, sense of, 28, 46, 59, 89–90

entrepreneurship, 5, 71

equality, 18, 28–29, 61

estate planning, 15, 79, 87

The Executive Committee International (TEC), 10–11

expenditures, 11, 35, 59, 90, 95, 126

expertise, 52, 126

failure rates, succession and wealth-transition plan

advisors, 130

Allarcom Pay Television Limited, 7

Canadian Satellite Communications (Cancom), 7

communication and, 41

current, 4, 8–10

failure reasons, succession and wealth-transition plan

communication, breakdown, 12–14

heirs, unprepared, 14–16

mission, lack of, 16–18

professionals, 18–19

trust, breakdown of, 12–14

fairness, 18, 28–29, 48, 61

family

assessment of, 50–51

board, governance and a, 105

communication and trust, breakdown of, 12–14

defined, 29–30

feuding, 11

foundations, 102

meetings, 119–120

unity, 31

Family Bank approach, 21 fig.

core concepts, 3–4, 20

vision of itself, 17

Family Business Governance (Aronoff and Ward), 106

Family Channel, 7

Family Wealth: Keeping It in the Family (Hughes), 3, 20, 23

fees, advisor, 132

finances, discussions of, 15–16

financial

acuity, 83–84

advice, 53

assets, 22, 65–77

conversations, 26–27

happiness, 60

independence, 28

industry, 123–124

information, 58

learning, 53

lessons, 16

loans, 114–115

financial capital

defined, 23

objectives and risk, 83

purpose of, 25–26

vision statement and, 41

Financial Post Magazine, 3

first-generation family members

family, defined, 29–30

governance, 107

parental control, 27–28

risks, business, 35

role of, 23

as trail blazers, 22

transition of, 8–9

as wealth creators, 94

focus, single-minded, 35

foundations, 105

Galbraith, John Kenneth, 31

Germany, 17

GM Place (Rogers Arena), 73–74

governance, 104–112

government, stewardship and, 46

government, tax laws, 91–92

government debt, 54

grandparents, role of, 111–112

Griffiths, Arthur, 68, 70–71, 73–74

Griffiths, Frank A.

Canadian Satellite Communications (Cancom), 7

career, 2, 7, 80

philanthropy, 96

Vancouver Canucks, 8

Western International Communications (WIC), 7

guaranteed investment certificates (GICs), 93

happiness, 60

healthcare, 45, 46

“heirloom,” 35

heirs, unprepared, 14–16, 94, 136

Hill, Crawford, 72

Hockey Hall of Fame, 8

Home Theatre, 7

honesty, 12

Hughes, James E. Jr., 3, 20, 23, 67–68, 87

Hugo, Victor, 136

human assets, 3, 21, 36, 50–64

human capital

education loans, 115

family wealth and, 23, 24–25, 98

inheritances, 35

preservation of financial capital and, 26

Rothschild family, 30–31

vision statement and, 41

well-being, 24

Hutton, Barbara, 38–39

inattention, 11, 35, 42, 90

inclusivity, 62–64

income stream, trusts and, 89

incompetence, 11, 35, 90

independence, 28, 37–38, 46, 60, 115

individual achievement, 31

inheritances, 35, 89

insurance, cottage, 81–82

insurance companies, 82

intellectual assets, 3, 21, 36, 50–64

intellectual capital

education loans, 115

family wealth and, 23, 25–26, 98

inheritances, 35

Rothschild family, 30–31

shared knowledge, 28

vision statement and, 41

intelligence, 22

interest rates, 57

“investment committee,” 111

investment governance structure, 111

Investment Policy Statement (IPS), 110

investments, 11, 110

junior board, 105

Kennedy, John F., 17

land ownership, raw, 83

leadership

communication, 33

communication and, 48

defined, 51

financial discussions, 16

Griffiths, Frank A., 7–8

harmony, family, 135

learning and, 52

lifestyle, legacy, 58–59

mentorship, 88–90, 94, 115–116

role of, 26

Treliving, Jim, 121

learning, 52–53

legal structures, governance, 106

life stages, 63

lifestyle, attitudes about, 58

lifestyle, legacy, 16, 58–59

listening, active, 48

litigation, estate, 87

loans, enhancement, 115–116

loans, financial, 114–115

lottery winnings, 35

Louis XV of France, 88

loyalty, client, 27

luck factor, 34–36

marital breakdown, policy and, 117

Mayflower Compact, 106–107

McCammon, Stan, 74

McCaw, Bruce, 68

McCaw, John, 68, 74

mentorship, 88–90, 94, 115–116

mismanagement, 11, 35, 90

mission, lack of, 16–18

mission statement, 40

Moore, Gordon, 52

Moore’s Law, 52

multigenerational wealth, 110–111

Murdoch, Rupert, 72

mutual funds, 55–56

National Basketball Association franchise, 2

National Hockey League (NHL), 2, 8, 70–71

NBA, 70–71

negligence, professional, 18–19

Northwest Sports Ltd., 70–71

oligarchy, 104

open-mindedness, 119

optimism, 40

ownership, control vs., 37, 61

ownership, management and, 71

Painted Rock Estate Winery, 67, 71

parental control, 27

passion, 27, 35, 67

pension plans, 54

Perpetuating the Family Business: 50 Lessons Learned from Long-Lasting, Successful Families in Business (Ward), 39

personal dreams. see dreams, personal

personal strength, 22

personal-use properties (PUPs), 80

philanthropy, 11, 96–103, 112

physical well-being, 24, 36

policies, before need, 29, 116–118, 125

potential, individual, 52

Preisser, Vic, 10, 40

preparedness, heirs, 14–16

Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values (William and Preisser), 10

primogeniture, 27

privacy, 12

probate fees, 87

process, agreed-upon, 114–116

professionals. see advisors

professional structures, 21

profit expectations, 31

projections, financial, 75–76

“pruning,” 62–63

purpose, sense of, 24

purpose, shared, 17, 29, 114

pursuit of happiness, 24

raw land, 83

redistribution, asset, 11

reformatting assets, 22

resentment, 43–44

respect, 118

risk, 35, 83, 94, 110

Rogers Arena, 68

role modeling, 26–27, 34

Rothschild, Mayer Amschel, 30–31

Rothschild family, 30–31

sales pitches, 129–130

scare tactics, 81

scholar’s award, 102–103

second-generation family members. see also sibling cooperation

character traits, 35

governance, 107–108

Griffiths family, 35

luck factor, 34–35

transition of, 8–9, 22

self-discipline, 51–52, 53–54

self-esteem, 23

self-fulfillment, 36, 37–38, 60

self-sufficiency, 27, 38

seminars, 6

sense of purpose, 24

sentimentality, 78

shareholders, 43

“shirtsleeves to shirtsleeves in three generations,” 9–11

sibling cooperation

family cottage and, 81, 84

governance, 107–108

partnership, 28, 39, 62

philanthropy, 97

Skinner, John, 67, 71

social safety nets, 54

South Africa, 17

sports organizations, 22, 69–71

standards, personal, 52

Stern, David, 70–71

stewardship

commitment to, 27, 36–37

family board as governance, 105

family cottage, 83

government and, 46

reformatting assets, 21–23

strike, labor, 54

Studio Post and Transfer, 7

Super Channel, 7

tax

capital gains, 82

estate, 79

laws, 80, 91

liability, as a, 42–43

planning structures, 80

returns, 5, 43

structure, 47

system, 44–45

teamwork, 39

“The Griffiths Family Saga: Line of Dissent,” 3

third-generation family members, 2, 8–9, 25, 78, 104, 108, 109–110

traditional approach to succession planning, 3–4, 10, 19, 23, 44, 136

transitioned assets, 11

Treliving, Jim, 121

trust, advisors, 125

trust, breakdown of, 12–14, 136

trustees, 43, 88, 89, 92–93

“trust fund baby,” 89

trust funds, 28, 42, 43, 79

trust structures, 19, 47, 76, 79, 80, 87, 116

union, labor, 34

unity, family, 31

values, shared

foundational piece, 32–33

as a foundation for the Family Bank, 19

getting started, 119–121

Investment Policy Statement (IPS), 110

passed down, 2

personal and, 24

vision statement and, 49

Vancouver Canucks, 8, 68

Vancouver Grizzlies, 68

Vanderbilt family, 31

vision, shared

changing, 52–53

conflict, 17–18, 40, 48–49

equality and fairness, 29

failure of plan and, 94–95

as a foundation for the Family Bank, 19

governance, 105

Investment Policy Statement (IPS), 110

philanthropy, 97

statement, 40

voice, earning a, 13–14, 23, 61–63, 109, 118–119, 120

The Wall Street Journal, 72

Ward, John L., 39, 106

wealth, defined, 23

wealth-creating generation. see first-generation family members

well-being, 24, 36

Western International Communications (WIC), 7

Williams, Roy, 10, 40

The Williams Group, 10–11

wills, as a governance structure, 106

wills and estate plans, 5

work, attitudes about, 58

work ethic, 27, 37–38, 52

“working together,” 31