By Cheryl Winokur Munk
New research shows that many high-net-worth families don't define goals for their wealth, leading to missed opportunities for engaging the next generation in money discussions.
Although many families see defining the purpose of wealth as a way to prepare and guide the next generation, 71% haven't engaged, or haven't fully engaged, younger family members in discussing it, according to early findings from the most recent AlTi Tiedemann Global and Campden Wealth Family Office Operational Excellence Report. That suggests many subsequent conversations about wealth also aren't happening. The research was conducted between February and May, with responses from 126 family offices.
Many "families don't want to talk about money or mortality," says Harmony Abney, director of governance and education at New York-based AlTi Tiedemann Global. They worry about having these discussions because they feel that being transparent could disincentivize their children or make them lazy. Also, for many wealthy heads of households, preparing others to step into a role they've held tightly to for years is "emotionally very difficult," Abney says.
However, talking honestly about family wealth appears to lead to better outcomes. A 20-year study of 3,200 families conducted by The Williams Group found that 85% of the likelihood of successfully transitioning family wealth is attributed to trust, communication, and heir preparedness.
Often, parents think about transferring money when they die, but if that doesn't happen until they're in their 90s — based on longer longevity — children may not receive significant wealth until their late 60s or 70s. At this point, many are likely to be unprepared and resentful, says Jill Shipley, head of governance and education at AlTi Tiedemann Global. Many next-generation individuals would benefit from receiving more family money in their 30s and 40s. This way, the younger generation has the opportunity to make mistakes with smaller amounts of money and learn, and parents can share in their children's enjoyment of family resources, she adds.
Encourage clients to define their purpose. Many families don't know how to begin conversations about money, often because the parents are first-generation wealthy and haven't had these discussions modeled for them. Financial advisors should encourage both the definition of purpose and subsequent conversations about wealth, Shipley says. Defining purpose is a good way to start a continuing dialogue, according to Shipley. A statement of purpose, which can include charitable, entrepreneurial or lifestyle objectives, is based on the family's needs and desires, and should be reviewed yearly and updated as necessary, Shipley says.
Nearly half (48%) of all respondents to the AlTi Tiedemann Global report said they have begun to formally define the purpose of their wealth and are implementing steps to achieve this. That's up from 33% in 2025. This is a good step for families, but they also need to take it to the next level by involving subsequent generations in these conversations.
The money will transfer to the next generation, regardless of whether families have these important discussions, Abney says. But the transfer will be smoother and more likely to stick if conversations take place over time, based on children's ages, abilities, and other considerations. Abney adds, "They can leave it to chance, or they can guide it by purpose."
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