This is a particularly well written article about the perils of transferring wealth from one generation to another. The bottom line is it isn't the actual transfer of the wealth but the abilities and stability of the individuals who may be receiving that wealth. This is the concept of wealth reception. How people receive wealth may ultimately determine how that wealth is utilized (or wasted). This concept of wealth reception is particularly important within the context of family businesses, many who do not survive to second and third generations. The heirs are generally not prepared intellectually and emotionally for the responsibilities of continuing the business. Many have absolutely no experience in the family business or in any business. Drug and alcohol abuse issues can also play a major role in how wealth is received and maintained. Estate planning with qualified professionals becomes a necessity if there is to be any hope of preserving family wealth.
Why Wealth Disappears
No comments:
Post a Comment