Next-Gen Education and Succession Planning

Preparing the second and third generations to responsibly manage and inherit institutional wealth.

The Shirtsleeves Proverb

The proverb "shirtsleeves to shirtsleeves in three generations" is statistical reality. Failure is rarely due to poor tax planning; it is almost always a failure of communication, lack of preparation, and absence of governance.

Financial Literacy vs. Stewardship

Teaching an heir to read a balance sheet is literacy. Teaching them the responsibilities of wealth is stewardship. Many SFOs mandate that Gen 2 must work outside the family business for 3-5 years and achieve a promotion before joining the SFO board.

Common Mistakes

Using trusts as a weapon to control adult children from the grave. Overly restrictive trust distributions breed resentment and incentivize beneficiaries to sue the trustee rather than build their own careers.