A sampling: "Most of them have no clue as to the value of money or how to handle it." "Generation Threes are usually doomed." "It takes the average recipient of an inheritance 19 days until they buy a new car."
Yes, the statistics may be grim. But just because most wealthy families see their fortunes evaporate within a couple of generations does not mean yours will. Some strategies to avoid it:
Talk Early And Often
You may think you are encouraging hard work by not disclosing wealth to your kids, but that really just fosters ignorance.
If you have just never talked about money, get over it, and give your kids a crash course in financial literacy. Many financial institutions, including U.S. Trust, offer specialized learning materials and courses to get heirs up to speed.
That goes for grandkids, too: Instill smart money lessons in them, and you have pushed family wealth forward another 30 or 40 years.
Discuss The Will
If you are ready for true transparency, take it up a notch and bring up the elephant in the room: the will.