Managing wealth extends beyond smart investing—it means preparing the next generation to inherit and sustain it. As fiduciaries, JL Bainbridge is committed not just to managing assets, but to guiding our clients in educating their heirs, so the wealth they’ve built continues to serve their families for generations.
The statistics relating to wealth transfer are sobering, with approximately 70% of wealthy families losing their wealth by the 2nd generation, and 90% by the third.1 This isn’t due to markets—it is due to a lack of financial literacy, poor preparation and too often, silence. At JL Bainbridge, we’ve seen this firsthand. Families with the best of intentions can see their legacy disappear within just a few years if their children aren’t prepared to manage inherited wealth.
At JL Bainbridge, we recognize how difficult these conversations can be, especially later in life. Many parents worry about how a future inheritance might change their children’s values or expectations. The fear of disrupting their path with the knowledge of an imminent windfall is real. But avoiding the conversation doesn’t prevent the consequences; it only delays them.
“Clients are often surprised at how relieved their children are to be included in the conversation,” says John Leeming, CFP®, President and CCO at JL Bainbridge. “What starts as a difficult topic can become a meaningful dialogue and often brings the family closer together.”
JL Bainbridge can facilitate family meetings designed to foster open, respectful conversations about money, purpose, and legacy. These sessions help instill financial literacy and align the family around shared values. A study from Ohio State found that more than a third of individuals who receive an inheritance see no lasting financial benefit from it.2
The team at JL Bainbridge has been privileged to work with many families across three generations—each one avoiding the all-too-familiar statistics of wealth loss. These families share a common thread: open communication, proactive education, and a willingness to involve future heirs early in the planning process. In addition to facilitating family meetings, JLB advisors can also explore broader conversations of trust and estate planning to serve clients beyond wealth planning.
If you haven’t started this conversation with your family, there’s no better time. Reach out to your JL Bainbridge advisor to learn how we can help you create a plan that prepares instead of surprises your heirs.
Sources:
1 Generational Wealth: Why do 70% of Families Lost Their Wealth in the 2nd Generation? https://www.nasdaq.com/articles/generational-wealth%3A-why-do-70-of-families-lose-their-wealth-in-the-2nd-generation-2018-10
2 Most Americans Save Only About Half of Their Inheritances, Study Finds – Ohio Research and Innovation Communications; https://news.osu.edu/most-americans-save-only-about-half-of-their-inheritances-study-finds---ohio-state-research-and-innovation-communications/?utm_source=chatgpt.com
Disclosure: This blog is for educational and informative purposes and should not be considered a recommendation. Investment advisory services are only available to those who become our clients through written agreement. This material is believed to be accurate. However we cannot guarantee accuracy, timeliness suitability, completeness or relevance because it is compiled from multiple third-party sources and the information provided may become outdated or otherwise rendered incorrect by new research or corrections. JL Bainbridge is a registered investment adviser. JL Bainbridge is not a broker dealer and does not offer tax or legal advice. Please consult your tax or legal professional for assistance regarding your individual situation. Registration with the SEC does not imply and level of skill or training. For more information about our firm and our investment advisor representatives, please review our Disclosure Brochure (ADV Part 2A), Privacy Notice, and Relationship Summary (Form CRS) at https://www.jlbainbridge.com/ or reference the SEC website for more information on the firm and its advisors at: https://adviserinfo.sec.gov/firm/summary/108058. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future performance BLG25
