How to Prevent Entitlement in America’s Children When a Trillion-Dollar Wealth Transfer is Underway
The United States is in the midst of a massive wealth transfer from Baby Boomers to Gen Xers and Millennials – to the tune of $30 trillion, in fact. In light of this, many parents are wondering how to ensure their children feel empowered by their inheritance, without adopting a dangerous sense of entitlement. Below we’ll explore four proactive strategies for avoiding uncomfortable family scenarios that can develop when adult children know there’s guaranteed money in their future.
The subject of money and inheritance can be seen as taboo in many families, whether there’s a great deal of money in the family or not. A 2015 survey by U.S. Trust (now Bank of America) showed that one-third of high net worth and ultra-high net worth adults intentionally did not discuss family finances with their children out of fear that it would create a negative work ethic. Additionally, a full 20 percent said they had been taught as children that it was not appropriate to talk about wealth. How, then, will these families address the very real concerns that arise when wealth transfers to the next generation? The four action steps below offer a place to start.
