Preserving family legacies with collaborative practice

• Economic strains and lower revenues often exacerbate family tensions, leading to disputes over legacy, investment strategies, and asset management.
• Estate disputes often arise from misunderstandings about family responsibilities and expectations, with different family members feeling entitled to or protective of certain assets.
• Collaborative practice offers a constructive alternative to litigation, allowing families to address their emotional, financial, and legal needs with the support of a team of professionals. 

As families expand their family offices in Asia to manage and preserve their assets, the complexities of the financial landscape have intensified. Increasing interest rates, rising costs, and lower revenues have caused many families to confront harsh realities. Economic strains coupled with family tensions can lead to disputes among family members over legacy, investment strategy, and asset management. These disagreements often become deeper issues related to family legacies, traditions, and cultures, fuelling misunderstandings and conflicts. 

These high-intensity family conflicts can often lead to litigation disputes, threatening the family's legacies and financial stability. In some families, when war is declared, this can result in a litigation battle that can last for many years and sever the family relationships and legacy. 

Understanding family legacies

Every family is unique and shaped by culture, experiences, and values. The family legacy embodies dreams and histories passed from generation to generation. Securing a family legacy is important to preserve wealth, maintain family relationships, and honour past generations. 

Family legacies can take on various forms that extend beyond financial wealth. Financial assets may include family business, property, and investments, whilst emotional legacies encompass values, traditions and beliefs passed through generations. Social legacies impact relationships and community engagement. Each aspect shapes the family identity and influences how members interact with one another and the community. Potential disputes over estates and inheritances frequently stem from misunderstandings regarding family responsibilities and expectations. Some family members may feel a strong sense of entitlement to certain assets, while others adopt protectiveness over the family legacy, leading to tension and conflict. Securing the family legacy involves financial considerations and ensuring the traditions and values are respected and preserved for future generations.

Estate disputes and collaborative practice 

Collaborative practice is a process that enables family members to address their emotional, financial and legal needs and reach agreements with the assistance of a team of collaboratively trained professionals without the need for litigation.

This method has several advantages:

• Confidentiality: discussions and agreements remain confidential. Unlike litigation, which is often public, all collaborative practice matters remain private, thus protecting the family’s reputation. Sensitive family issues are kept private from friends, colleagues, and the public. 
• Avoidance of litigation: All parties agree not to go to court. This avoids the emotional stress of a courtroom battle, and litigation can last for many years. 
• Cost-effectiveness: compared to litigation, collaborative practice is more cost-effective and time-efficient. Families can avoid excessive legal fees and protracted court battles. 
• Bespoke solutions: collaborative practice encourages creativity and bespoke solutions to reflect the unique values and needs of the individual family that may not be available in a traditional courtroom. 
• Flexible scheduling: meetings are flexible, allowing family members to set meetings according to availability.

Case study: The Stewart Family estate dispute

The Stewart family has been embroiled in escalating disputes regarding their estate, including significant property investments and bitcoin holdings. The patriarch dedicated many years to renovating the family property, but he passed away five years ago, leaving the estate divided between his son, Michael, and daughter, Sarah. Michael received 60% of the estate, and Sarah inherited 40%.

Michael proposed selling the family property two years ago to secure funds for his children’s education entrepreneurial ventures. However, Sarah opposed the sale, feeling the property should remain in the family’s legacy for future generations. She believed holding onto the estate could generate additional revenues significantly as the economic landscape shifted.

With rising interest rates and investment losses, the family faced mounting pressure from the banks demanding increased capital support. Frustrated by the economic client climate, Michael blamed Sarah for not acting sooner and seizing more favourable market opportunities to sell the property. The disagreements escalated, risking their relationships and jeopardising the family legacy.

Recognising that the conflict was taking a toll on the relationship and family legacy, a close friend recommended they consider collaborative practice to seek constructive resolution. This method emphasises open communication and respect and provides a reassuring and encouraging framework for problem-solving rather than aggressive litigation.

Working with a team of collaboratively trained practitioners – the team includes a coach/facilitator, family counsellor, lawyers, and financial neutral/accountant – Michael and Sarah developed a strategic plan with clear goals to help them adapt to the changing environment while preserving the family legacy. By establishing better communication, they strengthened their relationship and ensured that family traditions would endure for future generations. The collaborative approach, as demonstrated by the Stewart family, can provide a valuable framework for addressing estate disputes thoughtfully, privately, and constructively without litigation.

Preservation of family legacies 

Every family is unique, and securing family legacies encompasses more than managing financial assets. It involves preserving the family traditions, values, and distinctive identity for future generations. Collaborative practice provides possible solutions for addressing estate disputes that emphasise cooperation, respect, and understanding. By embracing a collaborative team approach, families can protect legacies, foster relationships, and create more harmony and love for family members. The alternative could be resolved by declaring war and litigating to win the battle and lose the family relationship and legacy.

Ann Cooley is the chief executive of Cooley Family Office, which specialises in managing sensitive and complex family financial issues. The company’s mission is to help families maintain harmony and create legacies. Ann has managed assets and complex financial family issues in New York, London, and Hong Kong for families including the Rockefellers, Rothschilds, and Cadbury.