Different members of the same family often have different views on how the family’s finances should be managed and who should receive the estate upon the owner’s death. This difference between viewpoints are often a reflection of the age of the person in the family. For example, a report shows that a vast majority of those in the generation that will inherit the wealth (30 to 40 year old family members) feel that it is important to be a good manager of the wealth. However, a divide exists among these people because some members of are involved in the family’s affairs to a greater extent. Older members of this group, who are more likely to be involved, reported a higher level of satisfaction with the investment decisions. Whereas those are less likely to be involved, younger people, reported that they were not satisfied with the investment decisions.
There is also some tension between the older and younger generation in the education process. Younger family members want to learn more about the family business, but do not want to interfere where they feel they do not have authority to make management decisions. Meanwhile, the older family members want to teach the younger members of the family but are afraid to let go of the control of the family’s wealth.
See Karen DeMasters, In Rich Families, Old and Young Differ On Inheritance Issues, Study Says, Private Wealth, May 10, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
