“Next Generation” Courses

The following excerpts are from Sharlene Goff, Inheritance is not child’s play, Financial Times, May 29, 2007:

There are many worse problems than having more wealth than you can possibly spend in one lifetime. But the financial – and moral – issues that confront the extremely affluent when they pass their wealth on to the next generation are far-reaching.

It is for this reason that most private banks now offer “next generation” courses that clients can send their children on to learn the fundamentals of investment and the likely impact of a significant inheritance.

Offerings range from week-long courses in luxury European and Asian resorts, to more discreet personal meetings in at banks’ private offices.  * * *

American Express has been running courses for the next generation since 2001. Like many private banks, the group gears its programme towards fairly broad subjects such as analysis of the different asset classes, trusts and estate planning, investment philosophies and the global economy. * * *

Each bank has its own boundaries for the level of wealth clients need to qualify. American Express says that typically the families of participants would be worth at least $1m. Many marketeers would now dub these the “mass affluent.” Further up the scale, Coutts – a London private bank – runs personalised programmes for “ultra high net worth individuals”, which translates as those with at least £10m to invest or a total wealth of £30m plus.

Special thanks to Prof. Joel C. Dobris of the University of California-Davis for bringing this article to my attention.