Why Your Family Needs a Mission Statement

You probably know you “should” have a will or a trust, but have you ever talked with your family about why your money exists in the first place? A simple family mission statement, combined with a comprehensive estate plan can dramatically increase the odds that your wealth and your relationships stay intact for generations.

In court once, I heard a judge warn a suddenly rich hier with the proverb, “Shirtsleeves to shirtsleeves in three generations.”

A little Googling reveals that sentiment is repeated around the world, and for good reason: You spend a lifetime working, saving, and building a life for the people you love. Yet research shows that an estimated 70% of wealthy families lose their wealth by the second generation, and around 90% lose it by the third.

That kind of loss usually is NOT just about bad investing. It is about something deeper: no shared purpose, no shared story, and no shared plan.

In this article, you’ll learn:

Why Money Alone Won’t Hold Your Family Together

Most people believe that if you leave “enough” money and the right legal documents, your work is done. Those are important, but it’s like framing + cladding a house without addressing how you’re going to live in it.

Most family wealth disappears because of breakdowns in communication, lack of trust, unspoken expectations, and heirs who are unprepared for responsibility. That’s the human side of planning; instead, people tend to focus on documents, like a will, trust, power of attorney, and health care proxy, without stopping to consider the how they’ll actually work.

This is where conflict often begins. Adult children may have different interpretations of your intentions. A surviving spouse may feel overwhelmed without guidance. Siblings may not agree on how assets should be used or what “fair” really means. Even in loving families, grief can magnify old wounds, create misunderstandings, and lead to decisions made from fear, anger, or resentment rather than clarity.

While a family mission statement cannot prevent every disagreement, it gives your loved ones an anchor: a shared understanding of why your resources exist and how you hope they will be used. When you pair that shared purpose with an estate plan that keeps your loved ones out of court and out of conflict, you dramatically increase the likelihood that your wealth and your relationships stay intact for generations.

Turning Your Estate Plan into a Family Playbook

A family mission statement is a short, written declaration of your family’s values, purpose, and goals around life, money, and legacy. It is not a legal document, and it does not replace your will or trust. Instead, it gives context and direction to the legal plan you create.

Think of it this way: your legal documents say what happens to your assets. Your family mission statement explains why and how you hope those assets are used.

My estate planning process is built around this idea. It begins with a set of documents, but continues with the intent of creating a plan that actually works for the people you love when you cannot be there. That includes:

Your family mission statement sits right alongside all of this. Here is how it can support your plan:

Simple Steps to Create Your Own Family Mission Statement

You do not need $5 million, a private banker, or a formal “family office” to benefit from a family mission statement. You only need a willingness to be honest about what you care about and a bit of time to talk. Here is a simple way to start:

📞 Schedule your complimentary 15-minute Discovery Call today to take the first step!

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