Apparently, your rich grandpa can’t donate his fortune to charity in peace.
While handing off wealth to the next generation is a major component of estate planning, few people discuss their philanthropic goals with their heirs.
In fact, eight out of 10 financial advisors said that only “some” or “hardly any” of their clients involve the next generation in family philanthropy, according to a recent survey from Key Private Bank, which polled 122 financial advisors online in June and July.
It would benefit the older generation to get their kids involved in the process, as the two often don’t see eye to eye on philanthropic causes. For instance, 73 percent of advisors said that faith-based issues tend to get the most support from parents, while close to six out of 10 advisors said children are the biggest supporters of environmental causes. And research supports the finding that younger Americans now lean more toward social and environmental causes.
“I rarely meet a client who involves their kids and grandkids in philanthropy,” said Anne Marie Levin, national director of family wealth legacy planning services at Key Private Bank. “It’s one of the biggest mistakes parents make when they think of wealth transfer planning and preparing their kids to be responsible heirs,” she said.