Studies show that half of all family fundsare lost because of poor spending habits or bad investing. In 2002, CitiPrivate Bank developed a program geared toward the inheritor called the NextGenprogram. Families with at least $25 million in assets are eligible toparticipate in the program. The purpose of the program is to train inheritorsto be smarter investors by exposing them to best practices so that after theyinherit their money they can have a foundation on different topics likeinvesting, entrepreneurship, and family legacy planning. A few other banks offersimilar programs, but the goal is the same: teach heirs about ways to besmarter investors and encourage them to resist spending the money too quickly.
See Robert Milbum, A Club for Young Heirs, Barron’s, Jul. 8, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
