Wealth transfer, a perennially touchy issue for some families, offers an opportunity for advisors to step in and bridge generational gaps, according to a new study by Campden Wealth and Morgan Stanley Private Wealth Management on attitudes surrounding wealth transfers.
Younger members of ultra-wealthy households are grappling with their forebears for a say in wealth planning, and women are concerned about how money affects their relationships, the study found, after surveying 53 families with a net worth of $100 million or more earlier this year.
Specifically, a majority of next-generation respondents, 79%, said they want to be good stewards of their families’ wealth and want more involvement. Campden Wealth also uncovered a breakdown between younger inheritors, those between 30 and 39, and the older respondents, those between ages 40 and 49.
One quarter of those aged 30 to 39 said they are generally not satisfied with their families, investment decisions, and 43% of respondents in their thirties said they do not agree at all with their families’ plans for wealth transfer. Only 14% of the group expressed strong satisfaction with the their respective families’ wealth transfer plans, compared with 84% of those in the 40 to 49 age range.
Women also present specific opportunities for financial advisors to alleviate concerns about wealth. Among next generation women, the study found, 79% were more concerned that their wealth would complicate their relations with spouses, partners, friends and colleagues, compared with 22% of men. Also, 50% of women worried about being targeted by unscrupulous people, and 43% of next generation women worried about their wealth being mismanaged.
Their male counterparts were less worried, as only 28% said they were concerned about being targeted by unscrupulous people, and 22% worried about their wealth being mismanaged.