There
Wealth literacy involves educating the successive
generation(s) to successfully inherit the wealth that
will be passed down to them. What most people don’t
realize is that receiving an excessive amount of wealth
can be extremely burdensome. Unsuccessful wealth
transfer causes most families (70%) to completely lose
their accumulated wealth after the third generation.
This happens when the next generation(s) are not used to
living in control of excessive wealth. As they were
growing up, money was a part of their lives. However,
once the responsibility of managing and making decisions
is upon them, we find that their knowledge and
experience are inadequate. The key to successful wealth
transfer is adequately preparing the next generations.
Because each family has a different construction and has
different dynamics, this teaching is customized to each
family.
We have worked with many families to educate all
generations. The patriarch and/or matriarch play vital
roles in the education process. It is they who know
their children the best. We discuss the agenda with the
parents before meeting with their children and
grandchildren. We have facilitated family meeting where
there was no mention of dollars or amounts of
inheritance, and we facilitated family meetings where
the parents’ entire estate plan was revealed and
discussed. No matter how the family meeting is
planned/designed we emphasize that the estate plan has
been created by the parents in line with their wishes.
Contact us today if you are
interested in learning more about our Risk Management services.
There
Wealth literacy involves educating the successive
generation(s) to successfully inherit the wealth that
will be passed down to them. What most people don’t
realize is that receiving an excessive amount of wealth
can be extremely burdensome. Unsuccessful wealth
transfer causes most families (70%) to completely lose
their accumulated wealth after the third generation.
This happens when the next generation(s) are not used to
living in control of excessive wealth. As they were
growing up, money was a part of their lives. However,
once the responsibility of managing and making decisions
is upon them, we find that their knowledge and
experience are inadequate. The key to successful wealth
transfer is adequately preparing the next generations.
Because each family has a different construction and has
different dynamics, this teaching is customized to each
family.