The Four-Way Test

One of the organizations I am a member of is Rotary International. I meet weekly with the Cache Valley Morning Rotary Club and each week we recite what is known as “The Four-Way Test.”  According to the Rotary website:  “The Four-Way Test is a nonpartisan and nonsectarian ethical guide for Rotarians to use for their personal and professional relationships.” 

The Four-Way Test goes as follows:

  • Of the things we think, say or do

  • Is it the TRUTH?

  • Is it FAIR to all concerned?

  • Will it build GOODWILL and BETTER FRIENDSHIPS?

  • Will it be BENEFICIAL to all concerned?

There is a great history behind how The Four-Way Test came to be and I would encourage you to learn more about it. But as I was reciting the test this week, it struck me how many of the tough estate planning and succession planning issues could be solved through application of The Four-Way Test. 

If you aren’t sure how to handle a particularly difficult issue in your planning (or any area of your life for that matter) consider running each potential solution through the rubric of The Four-Way Test. For example, in trying to solve the fair vs. equal question in planning for the transition of your family farm, run each potential solution through the gauntlet of these four questions: Is it the truth? Is it fair? Will it build goodwill and better friendships? Will it be beneficial to all concerned? 

Not every problem will have a simple resolution.  Many will still take time to sort through. But if you consistently apply this test to your decision making process, you will find true success in meeting your planning goals. 

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This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.

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Estate Planning After the SECURE Act: How Will It Affect You and the Beneficiaries of Your Retirement Accounts?