When I was a kid, my mom said on more than one occasion, “Remember Fred: blood is thicker than money.” At the time, I had no idea what she was talking about. Since she repeated it often, the saying stuck with me.
Once I got old enough to have some idea what she was getting at, I often wondered what the backstory was. Our family did have a little bit of a family feud that started back in 1919. My great-grandfather, August, was in the construction business in Dallas with his brother, Uncle Johnny. Johnny was the salesman, and August ran the day-to-day operations. Things went well for years. Then, for some reason, $1000 went unaccounted for in 1919. That was a lot of money back then. We never really knew what happened, but as a result, they split up the company. August went into construction, and Johnny went into demolition. We thought that was interesting.
Growing up, we weren’t even allowed to mention the names of the other side of the family. I had heard some rumors of trouble they had gotten into, but I didn’t meet anyone from that side of the family until I was about 18. It turns out they weren’t as bad as I had been told.
What does all this have to do with business and estate planning? Well, it is easy for misunderstandings and hurt feelings to fester and become real problems. Even when we just want to keep the family talking and spending holidays together, minor issues can grow into major obstacles. And it can be worse when there is a family business. Keeping lines of candid communication open is vital.
A poorly planned estate plan or business transition can be the pebble that grows into a landslide. Sometimes, because of the personalities involved, there isn’t much we can do, but I don’t know of any mother or father who wants to leave behind a feuding family or even just children who won’t talk to one another. So, careful planning is vital.
And careful drafting is as important, too. There are people who want to write their own estate plans or amend them. It’s kind of like doing your own dentistry. It doesn’t take into account the years of training and experience that an estate planning attorney has. A well-written, thought-out plan can avoid a lot of problems.
Give me a call if you want to talk.
