Tuesday, May 29, 2018
Will the Next Generation Squander the Largest Wealth Transfer in History?
"Accenture reports that over the next 30 to 40 years, $30 trillion in assets will pass from boomers to their heirs in the U.S. alone. What many people don’t realize, however, is that 70% of those intergenerational wealth transfers will fail by the time they reach the second generation, according to The Williams Group, a financial advisory firm."
There are 3 possible ways to make inheritances and wealth transfers respected rather than squandered.
- Make Wealth a Family Discussion
- Talk to your family about the importance of financial security, and the hopes you have of what you would like them to accomplish with your money.
- Focus on Values - Not Balances
- Place the emphasis on legacy and possibly social awareness rather than the dollar amount in a transfer of wealth.
- Establish a Clear Purpose for Your Wealth
- Stipulate that certain funds must be used for particular purposes, either in a will or in a trust. Your children (and even grandchildren!) may thank you in the end.
See Jess Stonefield, Will the Next Generation Squander the Largest Wealth Transfer in History?, Market Watch, May 29, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.