Welcome to my weekly Faith and Family Business reflections, where I (briefly) probe important questions that arise in family business – questions relating to behavior, relationships and legacy – from the angle of a Biblical story. For more information about this series, click here.
After Jacob steals his brother Esau’s blessing, Esau asks their father, Isaac, whether there is a blessing left for him.
Isaac answered and said to Esau, “Behold, I have made him lord over you, and all his brothers I have given to him for servants, and with grain and wine I have sustained him. What then can I do for you, my son?” (Gen 27:37)
Consider it a Biblical version of estate planning. Using tax law terminology, Isaac has given Jacob an “irrevocable” gift: nothing can call it back. Isaac wants to help Esau, but the best gifts have gone to his brother.
The dilemma with family estates is both how to be fair to our children, and when to bless them. We want to help with the right gifts at the right time in their (and our) lives. But the dynamics of a multi-generational business with varying levels of family participation, coupled with estate and gift tax laws, make the decisions difficult. Plus, each family unit or family member has unique circumstances and differing goals. Deliberation, wise counsel, and learning from your peers are important strategies when making decisions about inheritances.
At what age were you given significant financial gifts from your parents? How and when do you intend to bless your children with gifts, and what resources might aid in your decisions?
Check out my books and articles, the monthly Dispatch, or simply reply to contact me.