Women In Family Business – The Importance of Clarity

By Patricia Annino, J.D., Thomas Davidow, Ed.D. & Cynthia Adams Harrison, Ed.D., LICSW

The Importance of Clarity

family business imageThe more you and your husband agree to treat the business as a performance arena in which preparation is everything, the more productive your child will be. Similarly, the clearer you can be in terms of creating structures, the better off your child will be when he does enter the business. Being proactive about creating routines through governance structures or through accurate job descriptions is very helpful. If your child is already working in the business, you and your husband can discuss how to create sensible structures with appropriate boundaries. Everyone performs better when they know what’s expected and what the rules are.

Be Informed-Be Influential – Points to Remember

  • If your husband resists talking to you about the business or is upset about something at work and won’t share why, don’t take it personally and don’t give up.
  • Men and women really are different in how they think, behave, feel good about themselves and communicate.
  • When you set a limit for your husband, you are actually encouraging him: You are telling him that he is capable of achieving his goals as a businessman, husband and father.
  • It is possible to find the balance between creating objective criteria for your child’s performance in the business and maintaining family harmony.
  • There’s a difference between granting your child the automatic right to work in the business and giving him the opportunity to do so.
  • Things go best when there is consistent communication between you and your husband and between both of you and your child.

 

 

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning. She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about. Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime. To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

Women’s Leadership Role in the Family Business

women in business, family business word cloud image I have been reflecting on the rising role of women in leadership in family businesses and what that means. Based on my more than three decades of working with family businesses I have observed that the leadership style of women is quite different than that of men. These are personal observations. Psychoanalyst Jean Baker Miller, the author of Toward a New Psychology of Women, and first director of the Stone Center at Wellesley College, developed the “Relational-Cultural Theory” with her colleagues. Their work suggests that all growth occurs in connection, that all people yearn for connection, and that growth-fostering relationships are created through mutual empathy and empowerment.

The other side of this is disconnection – when the relationship connections no longer work or have become uncomfortable. When this happens, if the less powerful person is able to express her feelings and the other person is able to respond empathetically, disconnection can actually lead to a strengthened relationship and a strengthened sense of relational competence. If, however, the injured or less powerful person is unable to express her feelings or receives a response of indifference, she will begin to keep aspects of herself out of the relationship in order to maintain the relationship.

This very complicated analysis is at the heart of the difference between men and women in the work force, and in my experience working with in the family business too. Because so much of what a woman values is the connection and the relationship with others, when that is not reciprocated or encouraged, it can impede a woman’s ability to succeed.

For the most part men, on the other hand, don’t have that problem. They measure their success on their individual ability to get ahead and are not as bogged down by how they are judged in relationships with others. Generally, they are also not afraid of ruffling the feathers of those they work with to achieve success.  The fear of controversy can impede women from attaining higher levels of success because women do not instinctively understand that ruffling feathers and creating controversy does not mean that the relationship will end; in fact, it can mean that working through that will improve the relationship and lead to greater success for all. Women are afraid to risk the relationship for personal reward.

This fundamental difference in the way that men and women approach success in business is amplified when family is involved. In a provocative example, I asked three women in family business leadership positions if they competed for their position. In all three instances the immediate reaction was no. When I asked follow-up questions, “Didn’t your brother want the job too?” “Did someone just say now you are the President?”  All three women changed their answer to “I guess I did compete but I really don’t think of it that way”.

For many women today overtly acknowledging competition is just not done. In the family business, all of this is amplified.  In addition to concerns about peer approval and connection there is still the Thanksgiving dinner table and what the rest of the family will think about their leadership of the family business and how they got there. To me, this means that as women leadership in family business will continue to increase, what it means to the woman, the family business and the family itself will continue to evolve.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning. She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about. Annino recently released her new book, “It’s More Than Money, Protect Your Legacy” available at Amazon.com. To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

Patricia Annino Receives “Best in Wealth Management” Award

The Euromoney Legal Media Group chose Patricia Annino, Chair of Prince Lobel’s Estate Planning and Probate Practice Group, to receive the prestigious “Best in Wealth Management” award at the second annual Americas Women in Business Law Award ceremony held May 24, 2012, in New York City.

Selected from a short-list of eight well-known, highly-qualified nominees, Patricia’s award was based on extensive peer review research conducted by Euromoney’s research team, her professional accomplishments during the past 12 months, and her advocacy and influence in the field of wealth management.

Following the success of similar award ceremonies in Europe and Asia, the Americas Women in Business Law Awards was launched by Euromoney Legal Media Group to give law firms and professional services firms the recognition they deserve for their efforts in helping women advance in the legal profession.

Patricia Annino is a nationally recognized expert on estate planning and taxation, with more than 25 years of experience serving the estate planning needs of families, individuals, and owners of closely held and family businesses. She speaks regularly on many issues of concern to family owned businesses, including succession planning, risk management, managing a business with multiple stakeholders, the risk of divorce, and more. Annino is a graduate of Smith College and Suffolk University School of Law.

Patricia is the author of two widely utilized professional texts: Estate Planning in Massachusetts, and Taxwise Planning for Aging, Ill, or Incapacitated Clients. Patricia’s recent books for consumers include, Cracking the $$ Code: What Successful Men Know and You Don’t (Yet), Women in Family Business: What Keeps You up at Night, and Women & Money, A Practical Guide to Estate Planning.

About Prince Lobel

Prince Lobel Tye LLP is a full-service law firm providing a wide range of services for Fortune 1000 companies, closely held businesses, and individuals. Prince Lobel’s attorneys are guided by the highest standards of legal excellence, professionalism, and service – whether they are addressing complex business issues or providing advice on personal legal matters. Practice areas and industries served encompass corporate law, data privacy and security, domestic relations, employment law, estate planning and probate, insurance and reinsurance, intellectual property and Internet law, litigation, media law, nanotechnology, real estate, telecommunications law, construction law, environmental law, renewable energy, health care, and education. For more information, visit Prince Lobel at PrinceLobel.com.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

Women In Family Business – The Importance of Clarity

By Patricia Annino, J.D., Thomas Davidow, Ed.D. & Cynthia Adams Harrison, Ed.D., LICSW

The Importance of Clarity

The more you and your husband agree to treat the business as a performance arena in which preparation is everything, the more productive your child will be. Similarly, the clearer you can be in terms of creating structures, the better off your child will be when he does enter the business. Being proactive about creating routines through governance structures or through accurate job descriptions is very helpful. If your child is already working in the business, you and your husband can discuss how to create sensible structures with appropriate boundaries. Everyone performs better when they know what’s expected and what the rules are.

Be Informed-Be Influential – Points to Remember

  • If your husband resists talking to you about the business or is upset about something at work and won’t share why, don’t take it personally and don’t give up.
  • Men and women really are different in how they think, behave, feel good about themselves and communicate.
  • When you set a limit for your husband, you are actually encouraging him: You are telling him that he is capable of achieving his goals as a businessman, husband and father.
  • It is possible to find the balance between creating objective criteria for your child’s performance in the business and maintaining family harmony.
  • There’s a difference between granting your child the automatic right to work in the business and giving him the opportunity to do so.
  • Things go best when there is consistent communication between you and your husband and between both of you and your child.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

 

Donor Education & Financial Literacy

Educating the Donor about Tax Savings and Efficiency Matters

A significant advantage of financial literacy is that it can save the donor in estate tax depending on the type of gift made to institutions. It is important for donors to realize that inaction is involuntary philanthropy.  That is, what donors pay in taxes to the federal and state governments is spent by the government as it wishes on programs of its choosing.

So when donors pay taxes or give money without exercising any specific influence, they have engaged in de facto involuntary philanthropy.  That involuntary philanthropy can be at least partially converted to voluntary philanthropy by donating part of what the government would otherwise receive to charities of the donor’s choosing for purposes of the donor’s choosing.

Once donors realize that they have engaged in involuntary philanthropy, they are often motivated to consider philanthropic gifting. In other words, when the donor makes a private charitable gift and receives an income tax deduction for that gift, then the government loses part of its share of revenue and those funds are instead redirected to the specific philanthropic causes of the donor’s choosing.

Careful planning is needed to minimize transfer taxes, and charitable giving can play an important role in an estate plan. (http://www.360financialliteracy.org/Topics/Budgeting-Spending/Budgeting-and-Saving/Charitable-giving?print=1). By leaving money to charity, a donor may deduct the full amount of a charitable gift from the value of a gift or taxable estate. Understanding that there may be tax benefits and exploring what those benefits may be can be an effective way to start the giving conversation.

In particular the effective use of specific bequests to institutions, charitable lead trusts and charitable remainder trusts result in the donor and his/her family paying less in estate taxes. In 2011, generally, the federal gift and estate tax is imposed on transfers in excess of $5 million and at a top rate of 35 percent. (http://www.360financialliteracy.org/Topics/Budgeting-Spending/Budgeting-and-Saving/Charitable-giving?print=1).

Making an institution the beneficiary of a tax deferred retirement plan is the most tax efficient way to leave money if assets are greater than the federal estate tax exemption, as the charitable institution will receive the funds free of both estate and income tax. (Ann Kaplan. 2010.”Philanthropic Planning” Smith College, October 20, presentation).

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

Donor Education – Why Effective Donor Education Programs Are Important

One of the most effective ways to educate donors and help them achieve financial literacy is through sustained and focused donor education programs. The process of understanding the power of philanthropy and how it works best for a donor’s goals and objectives takes time. When donors learn together, share their ideas and understand what other donors have done and are doing, they become more comfortable with the process.

Donor education programs which focus on philanthropy and related topics, such as financial issues for women, can teach both men and women how to achieve the joy of giving while living. Your institution can incorporate into the donor education event faculty and student presentations which integrate messages into the mission of your institution. These programs can help differentiate/distinguish your institution and create deeper relationships with donors, alumnae, and alumni spouse (Women’s Philanthropy Institute 2009, 15). (8)

Effective donor education, combined with financial literacy, can also provide networking opportunities. Associating with women of similar financial standing increases their willingness to use their money to leave a legacy. This is especially relevant for women who are learning to be comfortable with their wealth. Many baby boomer women in this country will inherit twice—once from their parents and once from their spouse.  Nevertheless, donors will not give until they know that they can take care of themselves first. As an estate planning attorney, the most common question I hear from a new widow is, “Do I have enough money to live on?” (Of course that question should be asked many years before that moment in time.) Taking the time to systematically educate your women donors, to help them achieve financial literacy, to teach them that by gifting they can reap both current and future rewards will help empower them to act when they receive their “double inheritance.”

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

Women In Family Business-The Importance of Clarity

By Patricia Annino, J.D., Thomas Davidow, Ed.D. & Cynthia Adams Harrison, Ed.D., LICSW

The Importance of Clarity

The more you and your husband agree to treat the business as a performance arena in which preparation is everything, the more productive your child will be. Similarly, the clearer you can be in terms of creating structures, the better off your child will be when he does enter the business. Being proactive about creating routines through governance structures or through accurate job descriptions is very helpful. If your child is already working in the business, you and your husband can discuss how to create sensible structures with appropriate boundaries. Everyone performs better when they know what’s expected and what the rules are.

Be Informed-Be Influential – Points to Remember

  • If your husband resists talking to you about the business or is upset about something at work and won’t share why, don’t take it personally and don’t give up.
  • Men and women really are different in how they think, behave, feel good about themselves and communicate.
  • When you set a limit for your husband, you are actually encouraging him: You are telling him that he is capable of achieving his goals as a businessman, husband and father.
  • It is possible to find the balance between creating objective criteria for your child’s performance in the business and maintaining family harmony.
  • There’s a difference between granting your child the automatic right to work in the business and giving him the opportunity to do so.
  • Things go best when there is consistent communication between you and your husband and between both of you and your child.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

Women in Family Business

By Patricia Annino, J.D., Thomas Davidow, Ed.D. & Cynthia Adams Harrison, Ed.D., LICSW

Family owned businesses in America continue to thrive today. With their creativity, continuity and contribution to their communities, they have made themselves an essential aspect of the U.S. economy, now and in the future.

The good news for women in family owned businesses is that their roles continue to grow in importance. Today’s wife, mother, widow, second wife, daughter, daughter-in-law, sister and sister-in-law can expect to play a key part in the succession and continuity of the family owned business. But there is a caveat for women as well: While the number of women involved with the family business in this country is staggering, the resources tailored to them are scarce.

Women have always played important roles in family owned businesses-from keeping the home intact (allowing their spouses to devote the time necessary to build businesses) to Chief (formal or informal) Business Advisors, to co-founders, to CEO/President.

As women’s roles continue to evolve, they also bring with them special challenges and concerns: Wives worry when their husbands, unable to face change or their mortality, won’t step down and let their children run the business. Mothers worry that their children aren’t being treated fairly or that appointing one of them as successor will disrupt sibling harmony. Widows aren’t sure whether to keep the business or sell it. Stepmothers feel like outsiders in their blended families, with very limited influence over their stepchildren and too little financial security. Daughters and sisters want their fathers’ approval and to be given as much responsibility and as many opportunities in the business as their brothers, without sacrificing the flexibility to raise a family. And daughters-in-law and sisters-in-law want their in-laws to treat them with respect, not like second class citizens.

Through a combination of theoretical underpinnings; relevant anecdotes, highlighting the challenges women face in their family businesses; and concrete advice, we hope to heighten women’s awareness of the psychological, relational and financial implications of their roles and to present them with a survival guide for taking care of themselves and their families.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently announced the release of an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  Annino’s book is an exhortation, resource and trusted companion for women in all facets of life.  To purchase the book visit:  http://amzn.to/hOHuEV or for more about Annino, visit: www.patriciaannino.com

 

Women In Family Business-Important Questions to Ask Your Husband

By Patricia Annino, J.D., Thomas Davidow, Ed.D. & Cynthia Adams Harrison, Ed.D., LICSW

This post will help you address the psychological, relational and practical issues associated with management and succession which impact the lives, in the short and long term, of today’s and tomorrow’s women in family owned businesses.

My husband doesn’t discuss the business with me. How do I find out what is going on?

 It’s both healthy and reasonable for you to want information about what is going on with the business. Here are three reasons why:

  1.  If your children are going to be entering into the family business, or already have, it’s important that you and your husband discuss how they are performing and how to treat them fairly and reasonably.
  2.  Your family business may well be your most valuable asset. If you plan to pass it on to the next generation, knowing about its condition will help you assess the wisdom and possibility of doing so. If, for example, you have a child in the business who is not performing up, and one of you wants to continue to give him or her opportunities, the other one can explain in concrete terms the risk of doing that to your financial health.
  3. For the sake of your own financial security, it’s important for you to know the answers to the following questions as they pertain to the various stages of your life:
    • What is my right to involvement in what you had before you married me?
    • What’s going to be transpiring as we go along?
    • What is going on with the business?
    • How are we going to retire?
    • What happens if you become disabled?
    • What are you doing with our wealth?
    • How are you dividing it up amongst the kids?

The answers to these questions will clarify your financial future as well as any implicit, unstated contracts of your marriage.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently announced the release of an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  Annino’s book is an exhortation, resource and trusted companion for women in all facets of life.  To purchase the book visit:  http://amzn.to/hOHuEV or for more about Annino, visit: www.patriciaannino.com

 

 

 

Women In Family Business – a Woman’s Role

By Patricia Annino, J.D., Thomas Davidow, Ed.D. & Cynthia Adams Harrison, Ed.D., LICSW

Family owned businesses in America continue to thrive today. With their creativity, continuity and contribution to their communities, they have made themselves an essential aspect of the U.S. economy, now and in the future.

The good news for women in family owned businesses is that their roles continue to grow in importance. Today’s wife, mother, widow, second wife, daughter, daughter-in-law, sister and sister-in-law can expect to play a key part in the succession and continuity of the family owned business. But there is a caveat for women as well: While the number of women involved with the family business in this country is staggering, the resources tailored to them are scarce.

Women have always played important roles in family owned businesses-from keeping the home intact (allowing their spouses to devote the time necessary to build businesses) to Chief (formal or informal) Business Advisors, to co-founders, to CEO/President.

As women’s roles continue to evolve, they also bring with them special challenges and concerns: Wives worry when their husbands, unable to face change or their mortality, won’t step down and let their children run the business. Mothers worry that their children aren’t being treated fairly or that appointing one of them as successor will disrupt sibling harmony. Widows aren’t sure whether to keep the business or sell it. Stepmothers feel like outsiders in their blended families, with very limited influence over their stepchildren and too little financial security. Daughters and sisters want their fathers’ approval and to be given as much responsibility and as many opportunities in the business as their brothers, without sacrificing the flexibility to raise a family. And daughters-in-law and sisters-in-law want their in-laws to treat them with respect, not like second class citizens.

Women face many challenges in their roles within the family business.  We hope we have brought awareness to some of the pitfalls so you will go the next steps in taking care of yourselves and your families.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently announced the release of an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  Annino’s book is an exhortation, resource and trusted companion for women in all facets of life.  To purchase the book visit:  http://amzn.to/hOHuEV or for more about Annino, visit: www.patriciaannino.com

 

 

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