Merrill Center for Family Wealth™ publishes
guide to productive family conversations about money and
relationships
NEW
YORK, Nov. 2, 2023 /PRNewswire/ -- Nearly four
in five wealthy families have had unplanned discussions about
wealth with 26% later regretting it, according to a new study
published by the Merrill Center for Family Wealth™, a part
of Merrill Private Wealth Management. The research found 33% of
families increased family conversations about wealth since the
Pandemic; however, many families dive in without a plan, process,
or skills to make well-intended conversations productive. This can
lead to unintended stress, potential family rifts and
under-functioning heirs.
To better understand how families approach discussions about
wealth and decisions around gifting money, distributing assets
among heirs, managing shared assets, and preparing the rising
generation to handle wealth, Merrill surveyed 270+ individuals from
families with $50 million or more in
assets. The report, Pulling back the curtain: Wealthy families
open up about money, relationships and decision-making,
offers insights from a rarely-studied demographic and provides
valuable lessons and action steps for all families navigating the
complexities of intergenerational wealth.
The survey found:
- 78% of families who recently had conversations about family
wealth said the discussion came up spontaneously.
- 26% of those who have had these conversations said they
regretted it after the fact.
- 48% say that financial decision-making is shared among two or
more generations.
- 54% report that one of their biggest challenges when
co-managing shared assets is limited governance, such as a lack of
transparency or clarity about roles, responsibilities, and how
decisions are made, by whom.
- Just 14% say that the technical complexity of co-managing
shared assets is a top challenge, while the remaining 86% point to
non-technical challenges like complex family dynamics and limited
governance
"Our research pulls back the curtains on the intricacies of
family wealth, a topic that still remains taboo in many circles,"
said Valerie Galinskaya, head of the
Merrill Center for Family Wealth and principal author of a report
on the study findings. "When families learn to navigate wealth
together, starting with an intentional plan and thoughtful
conversations, they can do great things and thrive."
Gifting and distributing assets: What could go
wrong?
Beyond looking at how families make decisions and
communicate about wealth, the study also explored practices around
lifetime gifting and the distribution of estate assets.
The survey found:
- 83% of families provide some sort of ongoing support for adult
children or other heirs, including 39% who provide recurring
lifestyle support, such as payment of living expenses and repayment
of debt or loans.
- 56% who make or plan to make financial gifts during their
lifetime do so with an intent to share gifts equally among their
children or other family recipients.
- 35% of those making lifetime gifts do so on a case-by-case
basis, depending on the age and readiness of the recipient, their
financial need, and how much time they have put into the
family.
The Merrill Center for Family Wealth (the Center), a highly
specialized group within Merrill Private Wealth Management, works
closely with families to develop the skills and processes for more
productive family wealth conversations and effective
decision-making. In its report on the study findings, the Center
provides recommended guidance based on years of experience
facilitating family wealth discussions, particularly among families
with substantial wealth, complex dynamics or
circumstances.
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Phone: 1.646.855.3267
Julia.Ehrenfeld@bofa.com
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