The heads of ultra-high-net-worth families often have different views of how money should be bequeathed than those who will inherit it, according to a recent study.
For every planner considering the inheritance to leave and the arrangements to make, there is also a would-be inheritor with their own thoughts and strategies. As if figuring out your own plans and ensuring that they fall into place without a hitch weren’t difficult enough, it might also be necessary to contend with the would-be inheritor. I have seen this in estate plans right here in Omaha, Nebraska. There can also be a rift created between family members if they feel that they have not been involved in the inheritance tax discussion.
According to a new study out of Morgan Stanley Private Wealth Management and Campden Wealth entitled, "Next-Generation Wealth: The New Face of Affluence,” and as reported on over at Private Wealth Magazine, there is a tangible divide between the heads of today’s high-net-worth families and their inheritors.
The Private Wealth article, titled “In Rich Families, Old And Young Differ On Inheritance Issues, Study Says,” found a disconnect between the heads of families and their thirty-something inheritors. On the other hand, inheritors who are age 40 and older generally have either more involvement in the family wealth or greater complacency.
As for those thirty-something inheritors, the study reveals them to be an increasingly discontented bunch:
“Of the respondents aged 30 to 39, one quarter said they were not satisfied with their families' investment decisions and 43% disagreed with the wealth transfer plans. This compares to 84% of those in their 40s who said they have a high degree of satisfaction with the wealth transfer plans.”
Statistics aside, if you are passing wealth to a new generation, you might want to take into account their hopes and intentions. After all, planners increasingly want to leave more than a mere financial legacy. If you want the inheritance you leave to carry your values and insights, then plan and communicate.
Reference: Private Wealth (May 10, 2012) “In Rich Families, Old And Young Differ On Inheritance Issues, Study Says”