Beating the Midas Curse

by Perry L. Cochell, Rod Zeeb

Beating the Midas Curse describes the failure of traditional estate planning in addressing the needs of families across generations. It examines the role of ‘affluenza,’ a destructive relationship with wealth, as a root cause of traditional planning collapse. It also provides detailed analysis of the power of what has come to be known as The Heritage Process as a tool for keeping families, and their prosperity, intact for years. Plus, it describes the role of philanthropy as a major tool for combating the trans-generational effects of affluenza. The authors of the book have counseled thousands of affluent families, from those with modest wealth to dozens of the wealthiest families in America. Beating the Midas Curse is both timely as well as instructive. Studies show that six out of ten affluent families will lose the family fortune by the end of the second generation. By the end of the third generation, nine out of ten of all affluent families have blown through the family wealth, and many have suffered terrible family strife. In The Heritage Process, families learn through a guided discovery process how to make the values that have sustained and guided them to success the bedrock for their financial and estate planning. This ‘family before fortune’ perspective is a powerful antidote to the grim statistics of family wealth collapse and family disunity. Beating the Midas Curse was written for the families and individuals who will benefit most from values-based planning, and for non-profit organizations who want to help inform their constituents about the power of philanthropy in keeping families healthy and strong. The book is written in a lively, informative, conversational style. Authoritative detail is mixed with historical anecdote and real-world examples, and a targeted bibliography provides opportunity for additional reading. For individuals and families, advisors, non-profit officers and anyone else concerned about the health of the family, Beating the Midas Curse is an important book.

221 pages, Hardcover

First published November 9, 2005

Reviews

[Betsy Schwarzentraub · Rating 5 out of 5]

Remember the story of King Midas? He wished that everything he touched would turn to gold. It was a blessing – until his daughter greeted him with a hug and turned to gold as well. In Beating the Midas Curse, two planned-giving professionals say that the most important legacy people want to leave their loved ones is not their “gold” (money and assets), but “a clear vision for the future” powered by their values. If planned giving makes our children and grandchildren wealthy but fractures the family, it has defeated its purpose.

Historically, estate planning has focused almost exclusively on financial inheritances, say the authors, but that misses a far more meaningful inheritance than money – the emotional inheritance we receive over our lifetime from family members, friends, teachers, leaders, and others who’ve been significant in our lives. “Money is still important,” they say, “but only in its function as a resource to help perpetuate the values that will keep the family strong and prosperous for generations.”

This book proposes a specific, dynamic process that develops both an emotional side as well as a financial one. It includes the older generation sharing how made their money (including their work ethic, family history, and sacrifice), and developing a transition plan to get the kids on board about how to use money wisely. It includes values assessment for the intended beneficiaries, establishing a family bank, making decisions together as a family, and participating together in philanthropy. Planning ends up being more than just creating a will and trust, final instructions, and powers of attorney.

This is a refreshing book written in an engaging, accessible style. It takes a new angle on how planned giving can be a significant family affair, building good stewards in the process.
Betsy Schwarzentraub

[CM Witty · Rating 4 out of 5]

Very easy read with plenty of anecdotes and entertaining stories to support the main message of the book. Though there are some timeless take-away(s) to be gleaned from this offering, it is, unfortunately, hard to ignore how dated it is. A revised edition, and an audio-book, are strongly recommended. Maybe even a podcast? The beginning was a drawn out, and somewhat repetitive, effort to convince the reader of the merits in heritage planning. Eventually it picked up when the author(s) get to the nuts and bolts of the concept. Overall, I will keep this book in my library as a reference, and, I certainly marked it up a bit!

[Elizabeth Thorley]

I highly recommend to anyone interested in improving outcomes with transferring wealth and leaving a lasting legacy. Its about the QUALITATIVE aspects of planning that are often ignored in traditional estate planning. This is a book is not just for professionals, but more importantly, for thier clients.

[Randy Friedlander · Rating 4 out of 5]

Describes a methodology of keeping families successful, and avoiding the curse of "shirtsleeves to shirtsleeves in three generations". A good read for anyone concerned about their legacy, financial an otherwise. I met the co-author, Rod Zeeb in 2017 and was inspired to reach the book.

[Brian · Rating 4 out of 5]

Excellent...For those looking to leave more of themselves than their assets to their kids!

[Donna · Rating 4 out of 5]

Good read. Illustrates and defines the often overlooked aspects of estate planning: a transfer of values, not just wealth, maintaining family unity, keeping heirs well balanced, the many benefits of philanthropic giving. An important work as evidently 90-96% of inheritors still tend to blow their inheritance rather than manage it well and use it for good.

Two favorite quotes from the work:
"In fact, your estate is not a 'thing in itself.' Instead, it is an intertwining set of relationships between you, your ancestors, your children, and generations of your children yet unborn." (p.32)

"… emerging consensus among advisors, counselors, non-profit organizations and affluent families … that a family-based program of philanthropy is the most powerful tool there is for encouraging personal responsibility, accountability and family unity." (p. 149)

[Ryan · Rating 2 out of 5]

This book described a very interesting problem: 9 out of 10 inheritances are squandered. While many families take care of their estate plan, insurance, beneficiaries, etc., most will fail at what the authors call heritage planning.

I liked the premise of the book. It talks about a very real problem. However, the book is short on answers. The "solution" entails raising your children properly, to respect hard work, and a hard-earned dollar. I guess 9 out of 10 families fail at this? While I appreciate the articulation of the need for good parenting in relation to the successful transfer of wealth, there is not much insight regarding how to do this. The authors do offer a few guidelines, but it left me wanting.

My humble opinion, skip this book and go straight to Millionaire Next Door.

[Purple Wimple · Rating 2 out of 5]

I read this on assignment; it's an interesting idea-- engaging the whole family in formulating one's estate plan.

The authors (one of whom we know) seem to be writing for a stage performance; I find that annoying.

I also think it's silly to suggest that this is somehow a new idea. Isn't that what good parents have done since time out of mind?

They say no; I have my doubts.