Q: How do we protect the next generation from blowing our money?
A: Stop right there. Whether you have created or inherited the wealth, the language of the question reeks of a power, control and mistrust dynamic.
Many families either hang on to their wealth or setup structures to prevent their children from “blowing it” (which is often controlling from the grave). Yes, it’s awkward having discussions about estate planning and family wealth, and who wants to talk about their own death?
A friend once said: “Procrastination is caused by fear. Don’t try to ‘learn’ how to stop procrastinating, find out what you’re really afraid of“. It might be fear of death, fear of losing control, fear that children will not do what you expect of them, fear that divorce might lead to a loss of the wealth, or something else (or all of the above). Understanding those fears is an important barrier to overcome.
Successful families have had a willingness to be open with each other about the wealth that they’ve created, and not wait until death to leave everything to their heirs. Legacy is about passing on values and life skills to the next generation. If that is done well, the money (while it may be significant) becomes secondary.
Consider This: What are you waiting for? What are you afraid of?
Original articles: https://naples.floridaweekly.com/articles/tips-to-prevent-your-kids-from-squandering-their-inheritance/, http://www.williamsonherald.com/features/business/commentary-consider-training-your-family-to-handle-inheritance-properly/article_1b04fd32-66ad-11eb-bdef-a3dab823138b.html, https://www.bloomberg.com/news/articles/2021-02-17/how-to-talk-to-your-family-about-money-inheritance-and-wealth-to-avoid-fights, https://www.kiplinger.com/retirement/estate-planning/601269/how-do-we-protect-the-next-generation-from-blowing-our-money, https://www.thisismoney.co.uk/money/pensions/article-8494985/Parents-hoarding-wealth-avoid-children-losing-divorce.html
Actionable Generational Wealth Succession
For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/
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