If you’ve inherited wealth or plan to transition your wealth to your children, there’s a real chance much of it won’t last. The uncomfortable truth is that most family wealth does not survive beyond the next generation.
The Hard Truth About Inherited Wealth
A 20-year research project by The Williams Group showed that 70% of inherited wealth is lost by the second generation, and 90% by the third*. Let’s put these numbers into perspective:
Imagine you pass on $10 million to your children. Without clear guidance, education, or coordinated planning, that wealth begins to erode. Your children do their best, but between taxes, spending decisions, poor investments, or lack of oversight, $3 million remains. By the time your grandchildren inherit, the structure is weaker, the intent is unclear, and only $1 million is left. If that scenario makes you uncomfortable, it should. And it is exactly why careful planning matters long before wealth transitions should occur.
What Families Who Preserve Wealth Do Differently
Families that avoid becoming part of this statistic tend to take a more intentional approach. They focus on coordinating investment, tax, and estate strategies into one cohesive plan while preparing and educating the next generation well before wealth transfers. These steps alone can dramatically change long-term outcomes.
How JL Bainbridge Can Help Protect Your Legacy
At JL Bainbridge, we work with successful individuals and families to help bring education and clarity to you, your family, and the next generation. We believe lasting wealth requires foresight, communication, and a professional partner who understands that family dynamics matter just as much as market performance.
Don’t Leave Your Legacy to Chance
If you have accumulated or inherited wealth, now is the time to ask a critical question: Is your legacy designed to last, or will it fall victim and become part of the statistic? Contact JL Bainbridge to learn how they can help prepare you and your family. Click the link below to schedule a confidential meeting at your convenience.
Disclosure:
*Engaging with the next generation of family wealth - Professional Wealth Management
Any views and opinions expressed in this article are those of JL Bainbridge and are subject to change and reflect our judgment as of the publication date. This content is for general educational purposes only and should not be considered personalized investment advice. Investment advice is only available to those who are clients through written agreement.
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