Have you spoken to your family, including your children, that with wealth comes the obvious:

– privilege,
– opportunities and
– choices.

More importantly, with wealth comes responsibility. Many families of wealth tend to shield their children from both the burden of that wealth, though letting them enjoy the benefits that wealth can bring with a sumptuous lifestyle. At some time in the future, you may not be here to share with your heirs your important values about wealth and money. If you have not shared your values or demonstrated them in your daily living, your heirs will be left to develop their own values and goals about the family wealth – which can have its risks. I have seen too often a family of wealth continue to spend at a rate on lifestyle alone (country club memberships, own a nice home, drive a nice car) which by the third generation depletes the family capital. This did not have to happen if the family had a common understanding of nurturing the family wealth for future generations.

Some questions and thoughts about having a conversation with your family about wealth:

1. Have you thought deeply about what are your values around wealth which you would want to continue with your heirs?
2. Do your heirs know the stories and hard work of how the family wealth was accumulated?
3. Do they family members have a lifestyle spending budget? and do they stick to it?
4. Have you introduced the family to the the family’s key advisors, including financial ones?

By being proactive about sharing your family values around wealth as early as possible, you may be able to build and retain your key values around the family wealth within your family.

Learn, think, apply!