The generation that inherits wealth may not be aware of how hard it was to accumulate it.
Grandchildren and great-grandchildren of an initial wealth generator may not be qualified to preserve wealth, according to an article in Private Wealth “Heirs May Not Guard Wealth, An Advisor Says.”
The further removed heirs are from those who created the wealth, the less likely those heirs are to understand the work that went into it and the more likely it is that having wealth will seem like a natural occurrence to them.
This often leads to these later generations spending more of the wealth than they should and not leaving enough for it to continue passing down through the family.
There are ways to help protect against this.
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Read Our Current NewsletterThose who create the wealth can discuss the issue with their estate planning attorneys and devise ways to make it more difficult for later generations to waste what they inherit. Another good idea is to make sure that subsequent generations receive solid financial educations and advice.
An estate planning attorney can guide you creating an estate plan to fit your unique financial situation, including preserving generational wealth.
In our free guide, a California estate planning attorney explains common mistakes people make when creating their estate plans and how to prevent them.
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