Finance
Personal Finance
Wealth Management
Financial Literacy
Generational Wealth
UHNW Family Governance
Wills & Trusts
Money Values for Children
Family Governance
I've been reading a lot about generational wealth, UHNW, family governance, wills & trusts
Here are some things I found fascinating π
Here are some things I found fascinating π
There are firms and conferences that cater to UHNW (ultra high-net-worth individuals), teaching money values to children. Also a place for those children to meet others like them.
A top fear of UHNW is to raise spoiled kids
A top fear of UHNW is to raise spoiled kids
Most UHNW pass on inheritances when they die -- when their kids are in their 60s or 70s! What a waste.
Money is more meaningful in 30s/40s
New, more sophisticated UHNW are giving money earlier
Money is more meaningful in 30s/40s
New, more sophisticated UHNW are giving money earlier
Lots of UHNW try to βcontrol from the grave,β making trusts dependent on marriage, occupation, religion, etc.
I used to see this as a no-brainer for inheritance ("it's my money, I'll set the rules"). I changed my mind about this. I plan to have much, much looser rules
I used to see this as a no-brainer for inheritance ("it's my money, I'll set the rules"). I changed my mind about this. I plan to have much, much looser rules
Sophisticated families have formal meetings about wealth stewardship, family culture, philanthropy, family governance
They run the financial part like a business because it is -- a multi-generational business where values and culture matter enormously
They run the financial part like a business because it is -- a multi-generational business where values and culture matter enormously
Common for wealthy parents to leave estate with no clear inheritance plan. Always a disaster. Kids fight over house, never talk again. Make a plan and discuss with kids while alive. It's not morbid, it's planning. Everybody dies.
Common for parents to bequeath more money to a struggling child. This is a recipe for disaster.
βWhy does he get more? I did everything right and became a doctor. Now Iβm being punished for it.β
I didn't realize this and now have totally changed my mind
βWhy does he get more? I did everything right and became a doctor. Now Iβm being punished for it.β
I didn't realize this and now have totally changed my mind
There are lots of techniques to βequalizeβ inheritance to kids. For example, if you help someone in their 20s with a down payment, you can adjust the will, factoring in appreciation. This is a solved problem. Attorneys can guide you.
People do not suddenly know how to deal with millions of dollars. Important to start teaching children with small amounts and lessons. As they mature, larger and larger amounts, higher stakes. Let them understand consequences of good/bad decisions. Do not shield them.
My dream for my parents (not UHNW) is to spend every last cent. We donβt want their $, we want them to have an amazing life.
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