623-748-4890
Lincoln & Wenk, PLLC
View Blog Navigation

Most significant wealth is gone by the second generation

You've worked hard your whole life to build up money you can pass on to your children. You think of it as a lasting legacy to them, something to give them an advantage and make their lives easier.

If you have, though, you should know that 70 percent of rich families see that wealth deteriorate so quickly that it's all but gone by the time it gets to the second generation.

One man said his grandparents had accumulated wealth that today would have been worth $70 million. He said that going to see them when he was a kid was astounding. They wore tuxedos, and they owned farms, mansions, summers homes, boats and airplanes. However, he never got any of that tremendous wealth, because it was wasted by his parent's generation before it could get to him.

Certainly, he's not alone. The same study that found 70 percent of these rich families see wealth thrown away by their kids also found that 90 percent of them saw the wealth disappear by the third generation. This was when considering those with at least $3 million.

So, no matter how hard you worked, the odds are very good that your money won't make it through to your grandchildren, and they're even worse that it will make it to their children. The reasons vary, but the trend is clear.

Keep this is mind when doing your estate planning. There are things that you can do to protect your wealth and ensure that it won't be entirely wasted in short order. Use all of your options to set up a plan that gives your family lasting success.

Source: Time, "70% of Rich Families Lose Their Wealth by the Second Generation," Chris Taylor, accessed Nov. 15, 2016

No Comments

Leave a comment
Comment Information
Email Us For A Response

Need legal help from an attorney?
Contact us now to schedule a consultation with our lawyers

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Goodyear Office:
1616 North Litchfield Road
Suite 140
Goodyear, AZ 85395

Phone: 623-748-4890
Fax: 623-536-1984
Goodyear Law Office Map

Peoria Office:
16165 N. 83rd Avenue
Suite 200
Peoria, AZ 85381

Phone: 623-748-4890
Fax: 623-536-1984
Map & Directions

Phoenix - Desert Ridge Office:
20860 N. Tatum Blvd
Suite 300
Phoenix, AZ 85050

Phone: 623-748-4890
Fax: 623-536-1984
Map & Directions

Review Us