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.

- DIEKETSENG MALEKE

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.