Offered Alternative - Poster Presentation International Positive Psychology Association 8th IPPA World Congress 2023

Money and well-being: expanding the reach of well-being theory to change the landscape of the family wealth and inheritance industry (#801)

Claudia E Tordini 1 2 , Richard S Franklin 3 4
  1. Organizational Dynamics, University of Pennsylvania, Philadelphia, Pennsylvania, United States
  2. Appanage LLC, Arlington, VA, United States
  3. TRUST & ESTATES, Franklin Karibjanian & Law, Washington, DC, United States
  4. American College of Trust and Estate Counsel, ACTEC, Washington, DC, United States

Background

We are practitioners working at the intersection of family wealth and well-being theory. Wealth and inheritance have historically been approached by red cape1 professionals2 building on rather anecdotal data instead of data-driven research. Influential characters have rooted in society negative stigmas and ideologies of wealth as ill-being3, 4. This have led parents to mistrust and alienate their children, manipulate them through their wealth, and increase unhappiness.

Aims

We bring a positive approach for families to focus on their wealth as a resource to support family members’ well-being and flourishing. 

Method

We pioneered the use of positive psychology, well-being theory to offer a new lens for families to use their wealth as a resource to make life worth living. We delve into the unsupported stigma of wealth bringing to light the anecdotal aspect of widespread ideas such as that money ruins children3 or that family businesses are depleted after three generations5. We draw on empirical research such as world-wide life expectancy studies6, the U-shape happiness curve7, the nurture vs. nature well-being break-out8 and positive spending experiences9 to support innovative practices such as an early inheritance (or giving over the arch of parents’ lives) model10. We model Nordic countries that have consistently topped the world happiness ranks11 to shape families’ wealth and inheritance decision-making into a positive framework.12

Results

We built a family wealth and well-being framework13 to help families shift their focus from preservation and control of their wealth to support individuals’ well-being and flourishing. We are changing the dynamic between parents and their family members and with their service providers (such as trust and estate lawyers and wealth managers) too.

Conclusion

As our clients start adopting our tools and models, we are collecting data that supports positive impact on well-being. 

  1. Pawelski, J., 2018, William James And Well-Being: The Philosophy, Psychology, And Culture Of Human Flourishing. William James Studies , Vol. 14, No. 1 (SPRING 2018), pp. 1-25 Published by William James Society
  2. Seligman, 2002. Authentic Happiness. Pp 177-184. Atria Paperback. New York, NY.
  3. Carnegie, 1889, The Gospel of Wealth
  4. Buffet, W. Fortune Magazine, 1986, Should You Leave It All to the Children? If you do, you may not be doing them a favor. But if you want to, there are sensible ways of passing on what you have without depriving the kids of a feeling of achievement. By Richard I. Kirkland Jr. Reporter Associate Carrie Gottlieb
  5. Zellweger, T., Nason, R. and Nordqvist, M. 2011. From Longevity of Firms to Transgenerational Entrepreneurship of Families: Introducing Family Entrepreneurial Orientation. FAMILY FIRM INSTITUTE
  6. Chetty, Stepner, Abraham, Lin, Scuderi, Turner, Bergeron & Cutler, The Association Between Income and Life Expectancy in the United States, 2001-2014, Vol. 315, No. 16, JAMA (Apr. 10, 2016, corrected Jan. 3, 2017)
  7. Blanchflower, 2020. Is Happiness U-Shaped Everywhere? Age And Subjective Well-Being In 132 Countries, Working Paper 26641. NATIONAL BUREAU OF ECONOMIC RESEARCH, MA
  8. Lyubomirsky S. and Kennon, S. 2019. Revisiting the Sustainable Happiness Model and Pie Chart: Can Happiness Be Successfully Pursued? The Journal of Positive Psychology. Pages 145-154 | Published online: 07 Nov 2019
  9. Gilovich, Kumar & Jampol, 2014 A wonderful life: experiential consumption and the pursuit of happiness, J. Consumer Psychology. Elsevier
  10. Franklin & Tordini, 2020. Well-Being Supported by Family Wealth – A Foundation to Flourish, Bloomberg, Vol. 45, Estates, Gifts and Trusts Journal, Number 3 (May 7, 2020)
  11. Martel, F. 2022. Why are the Nordic Countries so Happy? 10th European Positive Psychology Conference, Iceland.
  12. Franklin & Tordini, Wealth and Well-Being - What Wealthy Families Can Learn from Sovereign Government Policies and Measuring Human Progress, Bloomberg, Vol. 46, Estates, Gifts and Trusts Journal, Number 3 (May 13, 2021)
  13. Franklin & Tordini, 2022. Wealth of Wisdom: Top Practices for Wealthy Families and Their Advisors, Chapter 4: A Framework for Family Wealth and Well-Being, in McCullough & Whitaker, WEALTH OF WISDOM: THE TOP PRACTICES FOR WEALTHY FAMILIES AND THEIR ADVISORS (Wiley, September 2022)
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