Wealth can be a powerful enabler of opportunity—but without guidance, it can also lead to complacency, confusion, or entitlement. For families planning to transfer significant assets to children or grandchildren, one of the biggest concerns isn’t financial—it’s philosophical: How do we ensure they’re ready?

Over the years, we’ve seen that successful wealth transfers aren’t just about the right legal structures. They’re about preparing heirs emotionally and intellectually for the role wealth will play in their lives.

The Risk of Entitlement

It’s not uncommon for affluent families to worry that wealth might demotivate their children or disconnect them from a sense of purpose. Some of the risks we’ve seen include:

• Lack of financial literacy or self-reliance
• Assumptions that money will always be there
• Avoidance of work or education
• Struggles with identity or comparison to prior generations
• Disconnection from the values that created the wealth

Shifting the Mindset: From Recipient to Contributor

One of the most powerful tools a family has is its narrative: How was the wealth created? What values supported it? What does it mean to be part of this legacy?

Instead of positioning heirs as passive recipients, consider how to position them as active stewards or contributors—people with agency, accountability, and a sense of ownership in the family’s values and vision.

Ways to Instill Responsibility

While there’s no one-size-fits-all approach, here are a few practices that can encourage a healthier mindset around inherited wealth:

• Encourage Financial Education Early
  Even before wealth transfers occur, build a foundation in budgeting, saving, investing, and taxes. Understanding the basics fosters confidence—and humility.
• Use Milestone-Based or Tiered Gifting
  Rather than providing lump sums, consider structures that provide assets based on age, accomplishments, or needs. This approach rewards responsibility and reduces the risk of sudden windfalls.
• Involve Heirs in Philanthropy
  Giving as a family can be a powerful way to reinforce values. It provides an opportunity for dialogue around what matters, how money can make an impact, and the responsibilities that come with wealth.
• Share the Family Story
  Many heirs don’t know the full story behind their family’s success. Creating a written or recorded family narrative can provide perspective and pride—and remind future generations that wealth is rarely accidental.
• Create a Forum for Dialogue
  Whether through family meetings, advisors, or outside facilitators, encourage open conversations about wealth, responsibility, and expectations. Avoid secrecy—it rarely protects anyone.

Entitlement is Avoidable—With Intention

Wealth doesn’t have to be a burden or a crutch. With the right preparation, it can be a source of opportunity, confidence, and purpose for the next generation.

But that doesn’t happen automatically. It requires intention, communication, and leadership from those passing the baton.

This content is for informational purposes only and should not be interpreted as legal, tax, or financial advice. Individuals should consult with their professional advisors for personalized planning.