Wealth and Relationships: From Fortune to Future – Equipping Heirs with Leadership, Not Just Assets
The amount of wealth transitioning to the next generation is now a staggering $124 trillion, according to a 2024 Cerulli report. On a recent call with the patriarch of an affluent family, he said, “It is better if they don’t know we are wealthy,” landing him firmly in the recurring cat-and-mouse game of pretending they are not wealthy and missing the opportunity to prepare them. This lack of trust—that the next generation won’t be derailed by family wealth—is a major source of conflict in families, and the biggest risk to family assets.
In a recent family meeting, feedback from the next generation was telling. When asked if they felt prepared to take on the responsibilities of managing the family legacy, the only feedback they were willing to give was: “The uncertainty surrounding our family’s wealth has severely strained our relationships within and across generations.” Not having productive conversations about wealth transition will degrade trust, perpetuate unhealthy communication patterns, put legacies at risk, and rob future generations of their potential. According to our globally recognized research, trust and communication breakdowns and unprepared heirs represents 85% of the reason for failed transitions.
An often-unspoken criterion for the senior generation to begin conversations about wealth transition is a low level of relational trust that the next generation can handle it. The hidden qualities include the ability to generate their own wealth, enroll others in their vision, manage relationships within the family, and handle conflict without losing their cool. Yet, the skills typically imparted to the next generation in the name of preparation focus on transactional trust, such as managing a portfolio or attending a financial boot camp.
A study by The Wharton Global Family Alliance found that heirs who participated in structured leadership and communication training—featuring safe spaces for peer-based dialogue and self-reflection—were better prepared to balance personal aspirations with collective family goals. Establishing a distinct voice while honoring family values is essential to handling the high-stakes conversations of wealth transfer and family unity.
The Williams Group has been preparing the next generation of leaders for 60 years. What we have learned is that investing in their ability to carve their own path is essential. It gives them the confidence to lead the family legacy, contribute to family wealth in a meaningful way, navigate the emotional complexities of affluence, and, perhaps most importantly, develop the skills to onboard the next generation in a healthy way.
When asked the proverbial question, “How much will I get, and when?” consider a response that is less about the money and more about the leadership required to ensure a legacy. “I’m not prepared to tell you how much to expect because that number will change. Rather, I’d like to share my purpose and vision for this family, my expectations for the next generation, and hear how you would like to contribute.”
Consider the following conversation starters to begin the wealth transition discussion:
- What information would be useful for you to know, and why is that important to you?
- In what way do you see yourself contributing to the family wealth?
- Where are the sources of tension in our family regarding wealth?
- What do you think we need to focus on to preserve family harmony and provide opportunities for future generations?
- What does it mean to you to be a “prepared heir?” What steps do you think would be useful for you to take now to address the gap? Do you see yourself as a leader?
Building their leadership skills will increase both their confidence and yours that the wealth will be a force for good in their lives. JPMorgan Private Bank’s Family Governance Report found that families that provide leadership training are more likely to preserve a high percentage of their wealth through multiple generations. Strong family governance builds resilient family systems that preserve assets as well as family harmony.
Learn more about The Williams Group NextGen Leaders Institute and our upcoming weekend retreat for NextGen family members aged 30-50 in Austin, TX. Or call us to find out if this program is right for your NextGen.