Planning for the Next Generation

Consider the “Why” When Gifting Assets

When it comes to gifting assets and passing down an inheritance, too often we fixate on the “how,” but don’t consider the “why”. In other words, although the mechanics of making gifts and transferring assets are important, such setting up irrevocable trusts or net gifts and bargain sales, so too is identifying the greater purpose of wealth and aligning the family around the desired impact.

Why is this important? Consider this. More than 70 percent of family wealth is lost generation to generation.* Not because of poor investments or bad financial decisions. The reason is a lack of trust and communication among family members. The good news? You can avoid this fate by taking a comprehensive, holistic approach to passing down assets.



Finally, make sure to seek out the ideas of the younger generations of the family about what they’d like the family’s wealth to accomplish. Some of the most impactful and innovative ideas come from the those who will be leading the world into the future.

* Source: Williams and Preisser, Preparing Heirs