One
of the great challenges faced by high-net-worth families is raising
motivated, thoughtful, and productive children. Within three
generations most families go from rags to riches to rags again. It may
be counterintuitive, but many of the families that overcome this
challenge and preserve their wealth for multiple generations do so by
giving some of it away. Planned philanthropy and a robust private
foundation are critical tools used by high-net-worth families who
successfully transfer both their values and their sense of purpose to
the next generation.
