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. Establish a family council or advisory board to guide decision-making, align values, and prevent conflicts.
2. Equip the next generation with financial literacy, investment knowledge, and risk management skills to manage and grow wealth.
3. I often recommend gradually involving younger family members in meetings and decision-making, allowing them to learn under mentorship before assuming full responsibility.
4. Develop a clear succession plan, defining roles for family members and ensuring leadership transitions smoothly.
5. Use trusts, private trust companies, or foundations to provide tax efficiency and secure assets across generations.
6. 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.
