The 3 “E”s

We always love a great rags-to-riches story. Especially when there are lessons to be learned about estate planning. In 1823, James Richardson came to Canada from humble beginnings in Ireland. He would go on to found James Richardson & Sons in 1857 with his two boys, James and Henry. The company started by buying and selling grain, and by 1923 they became Canada’s leading exporter in a time when the country was the world’s largest wheat-exporting nation. The company and its founders have certainly made a mark on Canadian history, bringing their pioneering spirit to numerous ventures. Today, 156 years after it was founded, James Richardson & Sons Limited has interests in agriculture, oil & gas, property management and financial services.

We recently heard the Richardson family speak about the governance model they use for stewarding their family’s wealth. It’s called the 3 “E”s of estate planning. We briefly discussed the 3 “E”s in an earlier blog post and it received a lot of positive feedback, so we felt strongly that it deserved further attention. The Richardson family’s first “E” is for ESTATE plan. Every member of the family has an estate plan. An estate plan truly is the foundation for your family’s future. You can be certain that the Richardson family’s estate plans are perfectly tailored to them, and that they honour the family’s values and goals.Next, the Richardson family works on ENGAGING the next generation. In order to survive and thrive over 150 years, the Richardson family has had to be in total synchronization with their heirs. That type of survival simply isn’t possible if a generation strays from the plan. That’s why we encourage all of our clients to get their children involved in the family’s finances and meetings from an early age. Finally, the Richardson family works on EDUCATING the next generation. Engaging your heirs is only half of the work. It’s also critical that you instill in them the necessary values and tools to be able to make the right decisions to steward the family’s wealth forward. Wealth management isn’t a particularly inherent skill—it needs to be taught. The Richardson’s serve as an excellent example that this is an effective method. It’s an approach to consider applying to your own family’s estate planning—regardless of the level of your wealth.