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Help Wealthy Clients Pass on Philanthropic Values to Their Children

It’s time to have uncomfortable conversations; advisors must step up.


The annual UBS study on billionaire ambitions reveals a historic shift, with new billionaires accumulating more wealth through inheritance than entrepreneurship for the first time. An estimated $30 trillion is expected to transfer to the next genera- tion in the coming decades, emphasizing the need for proper education and prepar- ation for responsible wealth management. The study highlights that 58% of surveyed billionaires view instilling necessary values, education, and experience in their heirs as a significant challenge. The education gap persists, with second-generation billionaires showing less inclination toward philanthropy and impact investing.


The issue extends beyond billionaires, as families with seven and eight figure net worth also grapple with passing on the right values and financial education to their children. Uncomfortable conversations about wealth transfer and responsible inheritance are essential for both wealth advisors and parents. Ignoring the need for financial literacy discussions can lead to family discord, with estate plans causing resentment and estrangement among siblings. Advisors play a crucial role in bridging the communication gap, emphasizing the importance of preparing the next generation to receive and manage family wealth responsibly.


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