While many wealthy families have documents in place to transfer wealth to the next generation, they do not focus upon properly preparing their heirs to be responsible recipients and stewards of the family’s wealth.
We have observed that the subsidy of a trust fund may produce an effect in which the heir lacks incentive to produce wealth or maintain a sustainable lifestyle. This leads to the depletion of family resources, and a potential divergence in family values. A proper wealth transfer plan will help reduce the prospect of future generations living on WealthFare™.
We have personally experienced and observed the mismanagement of generational wealth transitions under many different circumstances. We have seen:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the techniques and strategies discussed are suitable for all individuals or will yield positive outcomes. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor before implementing a plan.