Wealth & Finance May 2017

Wealth & Finance International 28 Ensure your Legacy lients of Lugen Family Office have access to LFO’s strategic network of global experts to help guide them through each step of its proprietary Seven Generation Legacy Process. LFO’s core operations include: • Family Office Services for Family Businesses • Second Opinions on wealth management from your own private and confidential Consigliere • Independent “Luxury” and “Commercial” Real Estate Consulting • Your Training Partner for your family and business legacy needs By collaborating with Lugen Family Office, clients will align their family and business with the leading values based family office in the world. Gain access to the firm’s private eco-system of highly respected strategic partners with a unique collaborative process to fulfill your life purpose and leave a positive legacy. Chief executive officer, Enzo Calamo, tells us more about why so many people are now turning to a family office to help secure their legacy. “Perhaps the most quoted statistic in the world of family business is this one: 30% of family businesses make it through the second generation, 10-15% make it to the third generation, and 3-5% make it to the fourth generation. Are you really willing to let your family become part of this dismal statistic?” “You may have heard the old proverb, ‘Shirtsleeves to shirtsleeves in three generations.’ What you may not know is that this trend is a global phenomenon. In Japan, the expression goes, ‘Rice paddies to rice paddies in three generations.’ In Italy it is, ‘From the Stables to the Stars to the Stables.’ The Scottish say, ‘The father buys, the son builds, the grandchild sells, and his son begs.’ In Spain, the expression is ‘Those that don’t have it make it, those who have it lose it.’ In Brazil, the saying goes, ‘Rich Father, Noble Son, Poor Grandson.’ In China, ‘Wealth never survives three generations.’” The Legacy Pyramid At LFO, the core principle revolves around something called the Legacy Pyramid and the Seven Generation Legacy Planning Process. Enzo tells us more. “At the base of everyone’s life planning is freedom of choice. This allows people to achieve Self-Actualization, as described by Maslow, and to build wealth for Financial Independence. The base of the Legacy Pyramid is based on a T3 model consisting of: 1) your most important priorities based on your core values (Time), 2) generating profitable returns from your actions (Treasure), and 3) leading a purpose driven life (Talents).” “Once you can fulfill your true aspirations for a purpose driven life, preservation and transcendence become important for legacy planning. Family Legacy is about taking care of your loved ones. This phase can be broken down into 4 core processes: 1) Transition Planning, based on a) educating the next generation, b) managing the future of your assets based on the unique abilities of your heirs, and c) making certain that your core personal and family values are passed on; 2) Ownership Planning, based on who will control your assets; 3) Fairness of Assets Distribution between heirs, partners, and other stakeholders (such as debt holders, shareholders, etc.); and 4) Preserving the Family Legacy of your life story, values, and offering guidance to future generations on the replacement of your unique abilities within the family.” “The last phase of the Legacy pyramid is how you want to be remem- bered for making a difference in the world based on the impact of your life, namely your Social Capital Legacy. This last phase of the Legacy Pyramid is based upon who will control the future of your dreams, assets, and values. Typically, this final choice is based upon your legacy being Government Directed versus Self Directed. If proper planning is not done, taxes and intestate laws will determine the future of your assets. Furthermore, your aspirations for the future of your family, and making a lasting difference in the world, may be lost due to the lack of a governance structure to manage your Social Capital Legacy. On the other hand, you can choose that your Social Capital Legacy be self-directed. You can lay the foundation for building a positive personal, family, and/or business legacy for generations to come based on your core values.” “In today’s society, it is common to think that estate planning, or suc- cession planning, are the best way to protect your financial wealth for future generations. However, as ThichNhat Hanh reminds us: ‘If you look deeply into the palm of your hand, you will see your parents and all generations of your ancestors. All of them are alive in this mo- ment. Each is present in your body. You are the continuation of each of these people.’ “With the Seven Generation Legacy Process, our goal is to help you take a long-term perspective of at least 150 years. Obviously, the chance of you, or any of your immediate family members, surviving this full cycle are slim. Consequently, this forces our clients to plant the seeds for success and significance today for future generations.” Seven Generation Legacy Process The best way to visualize the Seven Generation Legacy Process is as follows: 1) Respecting Traditions Keep alive the memories and stories of past generations, along with the important values and traditions that families are currently following, in a respectful manner. Lugen Family Office Inc. (LFO) is a Canadian company specializing in empowering intergenerational family stories for affluent business families around the world. As CEO, Enzo Calamo speaks to us about his unique approach to legacy fulfilment. C 1704WF29