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True conversations that shape legacy · UBS Trending

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  When it comes to family wealth.
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  It's not just about the numbers.
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  It's about values, trust,
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  and the conversations that shape legacy.
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  So how do you get it right?
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  We're going to break it all down for you
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  and a lot more right now.
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  On UBS Trending.
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  Hi everybody and welcome to UBS Trending I'm Anthony Pastore.
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  Thanks for joining us today
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  for this episode
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  that I'm here to sit with my friend and colleague Judy
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  Spalthoff the Head of the Family Office,
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  an Ultra High Net Worth Client Services here at UBS.
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  Great to see you, Judy. Good to be with you.
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  You know,
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  these conversations about conversations we've had before,
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  and you're
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  talking about these types of conversations
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  with many of our clients and, all of the folks that are walking
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  around the floors of our offices
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  so they know how to have informed conversations as well.
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  So I really think it would be really helpful to talk about
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  why discussions that are happening with families,
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  whether it's about legacy,
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  whether it's about the great wealth transfer,
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  so many conversations that should be happening.
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  Talk about the importance of those conversations
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  and why they need to be happening yesterday, you know.
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  Yeah. Yeah. Yesterday.
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  Look, I think at the end of the day,
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  it's not just about the wealth transfer,
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  it's about the wealth transitions.
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  So you can have an a great estate plan.
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  But if you don't explain the estate plan
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  or explain your intentions
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  within your estate plan,
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  you're missing opportunities with with your adult children.
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  And it's always, you know, the question is, when do I start?
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  Right. When.
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  And it's really about maturity, but it's about easing in.
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  It's not like jumping into, you know, an ocean.
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  You could get your feet wet first
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  and just start with the conversation
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  around values and things like that. Yeah.
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  Well that's that's the part.
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  It's like people with a lot of emotional conversations.
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  It's hard to know how to get started
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  because it's like you don't plan to sit at a table with
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  whoever the family member is and say, hey,
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  I want to talk about your estate plan when you might die or what
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  we're going to do with this, or
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  what are the values of our family.
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  So those those are really important things to say, okay,
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  how do we get started?
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  What's the way to bring up the conversation about values,
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  about legacy, about the family?
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  How do you
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  what do you say to clients who ask you those questions?
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  Look, I think it's not necessarily something you have to go alone
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  on, right?
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  I think the idea of using an advisor
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  or using a facilitator to make this more of a
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  about the business of being family
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  versus sort of just the family business
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  or things like that,
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  and really make it a little bit more formal than feels natural.
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  But use that facilitator aka or UBS Financial Advisor,
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  or one of the members of my team and Family
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  Office Solutions to help ease into those conversations.
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  That feels money is still the number one taboo.
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  And how do we break that down?
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  And it's really a facilitated conversation that can be helpful.
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  Yeah, it is
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  definitely a taboo topic that is really tough to get started.
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  Whether it's a family
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  or to some of your, you know, you're in a relationship
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  and you're
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  ready to walk down the aisle, it's all of a sudden
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  you have to have that money conversation.
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  So yeah, having a facilitator certainly would be a big help.
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  Let me ask you, Judy, because, you know,
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  for those families that want to get started
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  outside of maybe having a facilitator,
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  which I think would be a fantastic idea,
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  like our financial advisors
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  or like we said, you have great resources on your team.
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  You, yourself have been in many of these meetings.
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  What are some ways that some practical steps that folks can do
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  to kind of get the conversation started,
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  or at least plan for it when it finally happens
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  and you get the family at the table.
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  You know,
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  I think
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  one of the things that we recommend
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  is talking about how it was all made. Right.
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  So there's no mystery that there's money there.
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  You don't necessarily
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  have to, we'll say, open the kimono to pull up the balance sheet,
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  but you can talk about the hard work.
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  And I think that's part of the scariness
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  of the money conversation
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  within the generations
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  is I don't want to negate their their purpose,
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  or I don't want them to think
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  that there's so much money that they'll get that
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  they're not going to pursue, something of their lifestyle
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  or their passions or college,
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  you know, and have purposeful lives.
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  I think the idea is like,
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  this is how hard I worked
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  to keep those values in place and to talk about it.
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  But if you make it a mystery,
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  if you don't talk about what's really important
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  and what they hope to,
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  you know, we leave more than what's in our bank accounts. Yeah.
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  So if you don't focus on that too,
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  if you only talk about money, that's all they'll hear about.
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  Right.
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  And we've had conversations with our colleague, Mark
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  sitch who's talks about family office,
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  and I've asked him that question.
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  How do you then get all there may be multiple generations
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  in that family getting together to talk about you use
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  we use the word values. We throw it around a lot.
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  But it is interesting
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  because the older generation
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  and the younger generation
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  may just have completely different values.
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  So it is about communicating those values to each other,
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  obviously in a respectful way.
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  But also sometimes it's about respecting the perspective
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  of the other generation. Right.
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  And so is why is grandpa like that?
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  Or why is dad so hard pressed about X, Y, and Z?
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  And so sometimes talking about
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  what happened in your formidable years in the way you grow up?
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  A lot of people have different relationships with money, right.
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  And so it could be that you have the scarcity relationship
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  and you're thinking about the scarcity,
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  even though you have millions
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  and millions of dollars in the bank account,
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  you still may feel that scarcity relationship
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  versus the abundance relationship that someone else has.
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  So we just need to bring these things to light.
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  These conversations can be really interesting and meaningful
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  to have sometimes easier with the facilitator.
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  I'll go back to that.
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  But it's you still have to have the conversations.
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  Yeah.
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  And what's what's sort of a key.
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  I mean, obviously being transparent and open
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  is probably a way to do that.
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  What role can philanthropy then play?
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  Because we talk about this as well.
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  You know,
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  obviously philanthropy is a major
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  part of a lot of our clients lives.
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  How does that play a role in family values?
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  The conversations that could be happening,
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  because obviously
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  there may be different causes that each member of the family
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  maybe nothing to do with the generation might be interested in.
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  Right.
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  So philanthropy can play a really integral role.
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  It's not the only role.
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  Some people use it as a default.
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  And we wanted to also say this is about transference of values.
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  And so if we want to help our community write large,
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  it doesn't always have to be that we have to put the name
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  of our side of our building,
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  or we have to support this x, y, and z cause
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  it's just a matter of transferring the values
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  that we are fortunate
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  and we need to prepare ourselves to make an impact.
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  I think there's also, a mis guidance that philanthropy is easy.
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  Philanthropy is not easy. Philanthropy.
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  There's
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  I think, over 1.8 million charities just in our country alone.
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  So helping them not just find the direction
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  of being philanthropic,
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  but helping them make great choices
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  is also something that can be discussed as a family.
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  Right.
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  And subsequently also that we're talking
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  there's a, the Family Office Global Family Survey, is just
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  has just been released.
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  And there are a lot of interesting data points that came out from
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  that survey, like, you know, where people are concerned about or,
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  how artificial
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  intelligence is playing even more of a role in family offices.
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  What did you what was there anything that surprised you in
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  the results is really the question.
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  So not necessarily surprised us
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  because we're meeting with family offices every single day.
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  Right.
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  But so I is, as you were
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  saying, is at the top of the list
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  when it comes to investing themes.
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  So 65% of family offices,
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  you know, allocate to AI,
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  making it the number one most widely used investment theme.
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  That said, they also see a bubble.
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  Right.
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  And so people I think are channeling 2000
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  when the tech bubble burst
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  said, there's just so many amazingly huge companies
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  with massive valuations, in the AI space.
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  And I think everyone's AI heads are up.
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  There's there's a bubble going on. Right.
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  That's the question that the younger generation
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  might ask their dad.
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  It's like, why are you so freaked out about this?
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  Well, I lived through 2009
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  and I feel like I know what could happen, not easily.
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  And geopolitics obviously is top of mind.
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  Not surprising
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  considering what's going on right now in the world.
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  So obviously that is a concern
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  for our clients over the next five years.
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  Great stuff in that survey, by the way.
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  Yeah, sure.
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  I mean, look, you said geopolitics
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  and this
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  we just
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  it's notable to mention that this we surveyed our clients before,
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  the Iran crisis was happening, right.
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  The war in Iran.
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  But they do say 56% of U.S.
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  family offices even before that, cited
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  major geopolitical conflict and global trade war
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  as a major concern.
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  Yeah, Judy, thank you.
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  I know there's there's a whole lot to unpack there.
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  And I would recommend that,
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  you know, people watching
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  if they would like
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  a copy of the Global Family Office Survey
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  to reach out to their financial advisor at UBS.
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  But great to have you here in the studio here.
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  Congratulations on the report.
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  Thank you.
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  Good luck with all the future conversations
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  you'll be having with our clients.
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  Thank you so much for being with you.
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  Thank you Judy Spalthoff.
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  Thanks, everybody for joining us.
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  And for more information on anything that's coming out of UBS,
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  please take a look at our insights website at ubs.com/views.
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  But you can follow us on social media.
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  We're on LinkedIn and Facebook.
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  Plus the studio has its own dedicated Instagram channel at UBS
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  Trending. Give us a follow there.
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  And as always,
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  as Judy and I
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  said, please
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  make sure that you are continuing this conversation
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  with your financial advisor.
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  Until next time I'm Anthony Pastore.
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  We wish you a great rest of your day
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  and remember to keep your eyes on what's trending.
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  See you soon everybody. Thanks.