Differing Investment Ideas Between Young and Old

The head of the famiy often has a different view of how money should be bequeathed than those who will inherit it, according to a recent study.

For every planner considering the inheritance to leave and the arrangements to make, there is also a would-be inheritor with their own thoughts and strategies. As if figuring out your own plans and ensuring that they fall into place without a hitch weren’t difficult enough, it might also be necessary to contend with the would-be inheritor.

According to a new study out of Morgan Stanley Private Wealth Management and Campden Wealth entitled, "Next-Generation Wealth: The New Face of Affluence,” and as reported on over at Private Wealth Magazine, there is a tangible divide between the heads of today’s high-net-worth families and their inheritors.

The Private Wealth article, titled “In Rich Families, Old And Young Differ On Inheritance Issues, Study Says,” found a disconnect between the heads of families and their thirty-something inheritors. On the other hand, inheritors who are age 40 and older generally have either more involvement in the family wealth or greater complacency.

As for those thirty-something inheritors, the study reveals them to be an increasingly discontented bunch:

“Of the respondents aged 30 to 39, one quarter said they were not satisfied with their families' investment decisions and 43% disagreed with the wealth transfer plans. This compares to 84% of those in their 40s who said they have a high degree of satisfaction with the wealth transfer plans.”

Statistics aside, if you are passing wealth to a new generation, you might want to take into account their hopes and intentions. After all, planners increasingly want to leave more than a mere financial legacy. If you want the inheritance you leave to carry your values and insights, then plan and communicate.

You can learn more about estate planning and elder law issues on our website. Be sure to sign up for our complimentary e-newsletter to stay abreast of issues like these that could affect you, your loved ones and your estate planning. 

Reference: Private Wealth (May 10, 2012) “In Rich Families, Old And Young Differ On Inheritance Issues, Study Says

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