Awareness - The First Essential Step

What Are The Risks?
Become aware of the risks faced by every family: You may be surprised to learn that 70% of all affluent families lose control of their assets and family harmony following the transition of wealth to the next generation. Only 10% make it to the third generation.

Why The High Failure Rate?
Based upon our interviews with over 3,250 families post-transition©, the single most important issue that undermines successful transfers of family wealth is the breakdown in trust and communication among family members.

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60% Trust and Communication Breakdown
25% Failure to Prepare Heirs
15% All Other Causes (tax, legal, mission, etc.)

What Worries Families Most About The Influence of Wealth On Their Children

What worries families most about the influence of wealth on their children is not whether or not they will leave their heirs "enough" money. Parents worry much more about the impact of wealth upon their children...and whether or not they have an appreciation of the responsibilities and burdens that affluence can bring.

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Families Who Beat The Odds
Our research also revealed that families who successfully transition wealth, while maintaining strong family unity, share several critical traits.

Total family involvement, including spouses and grandchildren over age 16, in the wealth transfer and estate planning discussion and process
A formalized shared family vision of long-term family goals and values in a Family Mission Statement
High level of communication and trust among all family members

Next Step: Assessment
Discover if your family is at risk by taking advantage of proven assessment tools offered by the Institute for Preparing Heirs. Contact us to learn more.