How do I talk to my grown children about how to handle the money they will inherit? How can I ensure the wealth will last for them and beyond?
It’s not hard to come by financial advice about how to grow and preserve your wealth. Multi-family offices are a one-stop shop for various financial needs like tax and estate planning, insurance, trusteeship, investment advice and foundation management, all under one roof.
But managing the conversations, expectations and priorities surrounding the transfer of wealth are just as important.
“A financial planner’s focus is very much on preparing the assets for the family, but it is also important to prepare the family for the assets,” says Amy Castoro, president and CEO of the Williams Group, a consultancy that coaches families through transitions.
Investments and trusts often do not last to the third generation, says Castoro. After speaking with more than 2,000 high-net-worth families and business owners following an estate transfer, her firm found that 70 percent of the time, the wealth did not successfully transfer to the wealth-creator’s grandchildren.