Accumulating wealth can be difficult. Maintaining that wealth is also a fairly troublesome task. Business owners and other high net worth families in Florida often struggle with ensuring the continuation of their wealth from generation to generation, but this does not necessarily have to be the case. With careful estate planning and open lines of communication, families can better ensure generations of ongoing wealth.
According to The Williams Group, approximately 70 percent of high net worth families lose their wealth in the second generation. By the third generation, 90 percent of families have said goodbye to their wealth. Although all families are unique and there are likely many different factors at play, The Williams Group found that there were three primary causes -- breakdowns in familial trust and communication, unprepared heirs and other issues such as tax or legal problems.