“Approximately 70 percent of wealth is lost within one generation of its inheritance, while 90 percent is lost by the end of the third generation.”
In this Wealth Planning Update:
- High net worth families can make large lifetime gifts to their heirs that may be beneficial for estate planning purposes.
- Parents may hesitate in taking advantage of this opportunity due to concerns about the impact such wealth will have on their children.
- There are basic but important steps that parents can take to offset the potential negative effects of Sudden Wealth Syndrome on their children.
- Gifting is more than transferring assets–done in the right way it can give future generations the opportunity to lead productive, meaningful, and enriching lives.
Read the full article here.
Shared by Amir Mossanen, Wealth Advisor
Wells Fargo Private Bank
