At a glance
- The author points instead to family capital — values, relationships, traditions, beliefs, experiences and purpose — as the element that shapes how family members communicate, make decisions, work through difficulty and define wealth.
- More than $120 trillion will pass down over the next 20 years, according to a Cerulli Associates estimate cited in the column.
- The author's first step when working with families is to have each member reflect on their own views about money.
A WealthManagement.com column argues that trusts, estate plans, tax strategies and ownership structures do not by themselves decide whether family wealth survives a transfer. The author points instead to family capital — values, relationships, traditions, beliefs, experiences and purpose — as the element that shapes how family members communicate, make decisions, work through difficulty and define wealth.
More than $120 trillion will pass down over the next 20 years, according to a Cerulli Associates estimate cited in the column. Families concentrate on documents and structures, the author writes, and often incorrectly assume those efforts alone prepare the next generation.
The author's first step when working with families is to have each member reflect on their own views about money. A wealth creator may see financial resources through sacrifice, perseverance and risk-taking, recalling the uncertainty of building a business and the wish for security, and land on wealth as stability, responsibility and opportunity. The next generation, raised with greater access and security, may weigh preservation less and ask what wealth can help accomplish, leaning toward entrepreneurship, philanthropy or innovation.
Neither perspective is right or wrong, according to the column; each is shaped by personal experience. Families that successfully navigate the differences are the ones that share stories, explore perspectives and discuss the purpose behind the wealth, which the author says helps members understand one another's motivations, aspirations and values. The author also writes that not all members of the families worked with are always aligned, and treats differing views as something that can strengthen decision-making and broaden perspectives.
What the column asks of a family
The prescription is conversational rather than documentary: an individual reflection step first, then a family conversation about stories and purpose. The author frames the goal as a shared understanding of what the family stands for, which the column describes as key to heirs understanding not only what they may inherit but their role in carrying the legacy forward.
The column does not attach a figure to how much wealth fails to survive a transfer, and its case rests on the author's work with families rather than on measured outcomes.
Reported by The Book desk from WealthManagement.com. Published . Corrections