NEW YORK (MainStreet) The majority of wealthy Americans claim to be self-made, but the next generation will gain significant riches from inheritance as some $15 trillion in assets pass down family trees over the next 20 years. And the heirs may have little idea now regarding their future riches: Fewer than four in 10 (38%) of wealthy parents with children over the age of 25 have fully disclosed their substantial financial resources to their children, according to a U.S. Trust survey of high-net-worth individuals with $3 million or more in investable assets.
Financial advisors looking to help direct these assets may be in for a surprise. Most Millennial heirs (81%) either currently own or are interested in obtaining tangible assets such as land, real estate and timber.
But as anyone who has watched "The Real Housewives of Beverly Hills" knows, wealth does not preclude family drama and women are making significant contributions to household wealth. According to the U.S. Trust research, more than half (52%) of women came into their marriage or relationship with financial assets equal to or greater than their spouse or partner, and one-third (33%) of women are now the primary income earner or contribute equally to household wealth.
Fully six in 10 (59%) of high-net-worth families provide "substantial financial support" for adult relations struggling with adversity. The top five financial setbacks include divorce, addictions, untimely death or disability of a primary income earner, medical crises and squabbles over inheritance or distribution of family assets. However, only 3% of wealthy households have a financial plan in place for such contingencies.