Half of ultra high net worth families are worried about how younger generations are going to manage their wealth. This comes from a survey, carried out by UK accountancy firm Smith & Williamson, of UHNW families with a combined wealth of over £1 billion.
The survey of 39 families highlighted the necessity of improved communication between generations to reduce concerns.
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76% held family meetings to discuss the family wealth with 76% of the sample having one, or more, meetings a year. One in four families felt that communication was poor or very poor, but over half of correspondents had actually changed their succession plans.
While communication problems between older and younger generations are a contentious issue, the major fear UHNW families have is of mismanagement of their finances.
Frank Akers-Douglas, tax partner at Smith & Williamson, said: "Finding effective ways to train younger family members to take control are also issues for many participants. Besides improving communication between generations, there is widespread feeling that young adults need to establish their own careers and independence before benefiting from significant family wealth."
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