The progenitor's dilemma: avoiding entitlement when transferring wealth
The International Family Offices Journal
Vol. 4 - Iss. 3 pp. 29–36
An article by Doug Baumoel, Blair Trippe and Katie Spencer of Continuity Family Business Consulting (United States). They begin with a restatement of the issues worrying wealthy parents: Among the most perplexing problems faced by progenitors is how much should their heirs get and when. Above all, most parents want to avoid transferring wealth in a way that causes their children to become entitled and spoiled - crushing their initiative, their sense of purpose and their self-esteem. They also want to ensure that their children do not confuse self-worth with net-worth. They present a framework for new ways of thinking about wealth transfers that they argue can provide much-needed messaging that will sow seeds of empowerment in heirs: ? when progenitors make informed decisions with intention, factoring in all the relevant issues at play, they are better able to avoid common pitfalls and increase the likelihood that their wealth transfer will be constructive, and not destructive, for future generations ? While the framework does not provide direct answers to the progenitor's dilemma, it provides a useful way to think about the central issues and how actions and outcomes may be correlated. If accompanied by explanations and education, they conclude that the legacy has a greater likelihood of being a force for good, as was intended.