Here’s an interesting statistic: Nine out of 10 affluent families will lose their wealth within three generations. The article describes some steps you can take if you happen to be in one of those wealthy families to help your money last for centuries.
It seems to come down to passing along values in addition to passing along dollars. One of these values is hard work. First-generation wealthy parents want life to be easier for their children than it was for them when they were building their fortune, so sometimes (according to the article), children will receive the money without understanding how to work hard for it.
Another value that should be passed down is financial education. Many parents don’t discuss money-related concepts and schools don’t teach personal finance in general.
The value of “fairness” is stressed in the article, but “fair” doesn’t always mean equal.
If parents decide to create different arrangements for loved ones, Arnold continues, they need a video or written document — some kind of lasting explanation, so siblings do not take it out on each other. It tells them they’re loved and explains why the situation is the way it is.
If you’re concerned about passing your estate to your children and ensuring they take care of it will enough it will be around for generations to come, here are a few books that might help:
* Beating the Midas Curse
* Creating the Good Will : The Most Comprehensive Guide to Both the Financial and Emotional Sides of Passing on Your Legacy
* Wealth: Grow It, Protect It, Spend It, and Share It