Kingston: Building generational wealth, part II | Business

 Kingston: Building generational wealth, part II | Business

Malcolm Forbes famously said, “I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died.” According to the Williams Group, 70 percent of wealthy families lose their wealth by the second generation and 40 percent by the third. U.S. Trust surveyed individuals with more than $3 million in investible assets to determine how they are preparing the next generation for managing wealth. Of those surveyed, 78 percent believe their heirs are not financially responsible to handle inheritance, and 64 percent indicate they have disclosed very little about their wealth to their children.

Three Generations of Data

A recent study tracing family wealth across three generations, led by Fabian Pfeffer at the University of Michigan, found that the most significant way families transfer wealth is by facilitating the educational success and home ownership of the next generation, concluding that…

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