Generational Wealth Transfer: Strategies for Family Offices

70% of family wealth is lost by the second generation, and 90% is lost by the third generation. These sobering statistics reflect not just poor investment decisions but failures in governance, communication, and values alignment. Successful wealth transfer requires more than financial strategy; it requires family alignment.

The Three Pillars of Generational Wealth Transfer

The first pillar is documentation. Your investment philosophy, decision-making framework, and values must be clearly documented. This ensures that future generations understand not just what you invested in, but why.

The second pillar is education. Heirs must understand wealth preservation principles before inheriting significant assets. This education should begin years before the actual transfer.

The third pillar is governance. Establish clear governance structures that provide guidance without eliminating flexibility for future generations to adapt to changing circumstances.

Implementation Framework

At Kairross, we help families establish governance structures, develop investment policies, and create educational programs that ensure wealth preservation across generations.