Expert tips for educating heirs on family wealth

Experts at a recent Stonehage Fleming Family Office panel discussion emphasise the importance of early education, structured communication, and coordinated advisory strategies when preparing the next generation to inherit and manage family wealth.

The event addresses a growing concern in family succession planning: how and when to bring heirs into financial stewardship without overwhelming or alienating them.

Layve Rabinowitz, head of Stonehage Fleming Family Office Middle East & Africa, says initiating financial conversations should begin “sooner rather than later” but with sensitivity to what is appropriate for the heir’s age. “One doesn't have to start by sharing the entire family balance sheet and offshore structures with the 10 or 12-year-olds, who then share the details with their friends at school. But there’s certainly an educational process that can be worked on," Rabinowitz says.

Rabinowitz warns against avoiding these discussions entirely, noting that doing so often leads to family discord once the older generation is no longer around. He cautions against the "reading of the will" scenario, in which heirs are caught off guard by their inheritance and ill-equipped to manage it responsibly.

Cora Binchy, head of Fiduciary (Jersey), underlines the importance of helping younger family members navigate the balance between becoming involved in managing the family fortune and pursuing their own ambitions. “It's a balance between that and pursuing their own life ambitions, rather than feeling like it’s all set out for them already,” she says.

Structured family meetings are identified as a key strategy for succession planning. Family Office Partner Thiam Marais says these gatherings offer a platform for inclusive dialogue, particularly in multi-generational family enterprises where not every family member holds a formal position.

“Often when you get to a third-generation business, it's not practical for all your children to be trustees or directors in the company, and for many of them, something like a family meeting is the only forum where they get a chance to air their views,” Marais says.

Best practices shared during the panel include giving each attendee the chance to contribute to meeting agendas, reviewing family structures and documents regularly, and ensuring that meetings are consistently scheduled. Rabinowitz says: “The best start to a family meeting is to make sure that there is a family meeting.” He adds that consistency, rather than a once-off approach, drives continuity in wealth management discussions.

Risk management is flagged as an underutilised agenda item, with only 20% of families reportedly addressing it during meetings. Rabinowitz recommends making it a permanent fixture on the agenda, stating that “even if it's just the heading: risk,” it can trigger necessary conversations.

The panel also discusses the real-life implications of inadequate communication. Binchy references one case in which a settlor’s rigid expectations conflict with his children's life choices.

“He wants his son to become involved in the family business. However, his son is not interested and instead becomes a professor of anthropology. His daughter becomes quite involved in the business.”

In such cases, the panellists agree, illustrating the need for flexibility and dialogue within family planning processes.

The discussion also explores the merits of multi-disciplinary advisory teams versus individual specialists. Rabinowitz acknowledges the appeal of “a one-stop shop” for convenience but flags potential conflicts of interest, which he says can be managed with proper oversight. He gives the example of a wealthy family whose second-generation heir is tasked with coordinating a team of 40 advisors to ensure alignment across all disciplines.

He warns of the risks of poor coordination, noting that families can unintentionally invalidate legal documents when multiple advisors operate independently across jurisdictions.

Binchy points out that even within multi-disciplinary advisory models, independence can be preserved.

“We work very well with other providers, advisors, and family offices who want to tap into any of our comprehensive global advisory or wealth management services,” she says.

Marais adds that firms offering integrated advice are inherently motivated to ensure accuracy and prudence.

“A multi-family office has to live with its advice. When the same team provides tax advice, trust administration, and investment management, they have a lot to lose if the initial advice isn't sound," she says.

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