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 Wealth Literacy services.
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.