Wealth may take a lifetime to build — but without the right planning, it can be lost in a single generation.
According to a 25‑year study by US wealth consultancy Williams Group, 70% of wealthy families lose their wealth by the second generation and 90% by the third.
The causes of this are not because families lack access to good investment advice. The breakdown usually comes from within — poor communication, unprepared heirs or a lack of shared purpose across generations.
As families grow and evolve, so too do the dynamics, responsibilities and potential risks. That’s why wealth transition planning has become one of the most important and complex, challenges facing successful families today.
The case for planning
Many families start thinking about intergenerational wealth transfer when a major life event prompts reflection — the sale of a family business, the prospect of retirement or the arrival of grandchildren. Others are navigating more delicate issues: divorce, blended families or uncertainty about how younger generations will handle the responsibility that comes with wealth.
Sometimes the realisation is more sobering: what would happen if a key decision maker were to pass away unexpectedly? Are others in the family informed, engaged and equipped to step in? Has there been open discussion about succession or have assumptions taken the place of planning?
These questions can be uncomfortable — but they’re essential. Without a clear plan, families risk not only financial fragmentation, but personal strain. When expectations aren’t aligned, even close-knit families can find themselves in conflict.
The real risks
One of the most surprising insights from studies into failed wealth transitions is that money itself is rarely the problem. Rather, the issues lie beneath the surface: breakdowns in trust and communication account for 60% of failures. A further 25% result from inadequate preparation of the next generation. In other words, the technical structures might be in place — but the people and the relationships, are not ready. Families can end up pulling in different directions, eroding both capital and connection over time.
A holistic approach to family wealth
Intergenerational planning isn’t just about tax efficiency or legal documents — though both are important. It’s about creating a framework that supports good decision-making, strong relationships and continuity over time.
That might include family meetings to explore what legacy means to you and how you want to see it carried forward. It may involve formalising roles and responsibilities or developing a family charter that outlines how key decisions will be made. For some families, it includes forming a family council or investing in financial education for younger members, so they feel confident participating in discussions.
Traditional structures such as family trusts, self-managed superannuation funds, investment companies and insurance bonds all play a role. So too do more personal decisions — like helping children buy a first home, paying for education, or supporting a start-up business idea. These can all be part of a broader, pre-death wealth transfer strategy that aligns with your values and objectives.
Is a family office the right fit?
For families with significant or complex wealth, a family office model may be worth considering. At William Buck we provide a tailored service that brings together financial, legal, investment and philanthropic advice under one roof, coordinated by a trusted adviser who understands the full picture.
Clients typically considering a family office tend to have multiple financial structures, cross-generational needs and a desire for long-term continuity. They may also be navigating sensitive family dynamics, have charitable ambitions, or want to ensure the next generation is not only financially secure, but also well-prepared to manage and grow the wealth.
Ultimately, a successful family office does more than just preserve wealth. It fosters alignment, strengthens relationships and provides reassurance that the family’s legacy is in capable hands.
Building a lasting legacy
The process of planning for intergenerational wealth transfer is as much about people as it is about assets. At William Buck we help families by facilitating honest conversations, presenting thoughtful strategies and developing clear documentation and governance.
This might involve succession planning, estate planning, shareholder agreements and binding financial arrangements — but also includes an understanding of what the family values most. Heritage, reputation, contribution to the community, mentoring and education are also forms of wealth and deserve to be preserved.
The goal is simple: to ensure that what you’ve built continues to serve your family — not divide it. With the right approach, families emerge from the process not only with a more secure financial future, but with stronger relationships and greater clarity about the road ahead.
Get in touch with a William Buck Wealth advisor today to learn how we can help you and your family plan for a future of prosperity and a legacy that stands the test of time.
