Cerulli, an advisory firm to the high net worth families, tallied an estimate that showed $ 68 trillion (yes 12 zeros) will pass down from one generation to the next over the next 25 years in the US. This is significant. How will this wealth be divided within and between the heirs and what will such wealth bring to the upcoming generation? Not so long ago, the wealth was given to the first born son = primogeniture. This view of inheritance persists in some ethnic cultures. However, the most capable caretaker of the family wealth may not always be the first born son. This can pose a dilemma for some families, not easily solved, if tradition is stringently followed.

Cerulli’s report is here: Cerulli landing page

One family was planning for the wealth to be in existence 6 generations later and was setting up structures to accomplish this. The patriarch clearly stated that the next generation could enjoy the benefits of the wealth but it was not theirs for the keeping nor spending. This next generation was intended to be caretakers of the family wealth for the multitude of future generations.

A long term view of wealth, money and inheritance, with a healthy dose of good advice can really help a family preserve the wealth that it has accumulated.

Learn, think, apply!