Successful intergenerational wealth transfer requires more than just passing on assets – it’s about governance, education and strategic planning.
With an alarming 70% of families losing their wealth by the second generation, a structured approach is essential for long-term success. Here are the key factors I focus on when working with clients:
1) 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: Establish a family council or advisory board to guide decision-making, align values, and prevent conflicts.
2) 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻 & 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗟𝗶𝘁𝗲𝗿𝗮𝗰𝘆: Equip the next generation with financial literacy, investment knowledge, and risk management skills to manage and grow wealth.
3) 𝗣𝗵𝗮𝘀𝗲𝗱 𝗜𝗻𝘃𝗼𝗹𝘃𝗲𝗺𝗲𝗻𝘁: I often recommend gradually involving younger family members in meetings and decision-making, allowing them to learn under mentorship before assuming full responsibility.
4) 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗶𝗼𝗻 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴: Develop a clear succession plan, defining roles for family members and ensuring leadership transitions smoothly.
5) 𝗧𝗿𝘂𝘀𝘁 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀: Use trusts, private trust companies, or foundations to provide tax efficiency and secure assets across generations.
6) 𝗣𝗵𝗶𝗹𝗮𝗻𝘁𝗵𝗿𝗼𝗽𝘆 & 𝗟𝗲𝗴𝗮𝗰𝘆: Integrate philanthropy into the plan to build a shared purpose, strengthen family bonds, and align with long-term goals.
In my experience, a strategic, multi-faceted approach is key to preserving wealth across generations.
Let’s connect to discuss how your family can implement these strategies for a successful wealth transition.