October 30, 2025
When it comes to creating and preserving family wealth, making sure family members are aligned to the principles and goals of a wealth management plan is as essential as choosing where to invest to ensure success. However, many choose to delay this
out of concern for creating conflict. While this is undoubtedly a delicate process, involving the next generation in the family’s wealth management can help to ensure their long-term security— even across future generations.
“There is no one-size-fits-all approach to intergenerational wealth transfer,” says Mike Downs, CC&L Private Capital Wealth Advisor, Advising Representative. “Every family has its own unique circumstances that need to be thoughtfully
considered by the matriarch or patriarch. These circumstances are not static; they evolve over time. Changes in health, life partnerships, education plans (and costs), and individual career trajectories can all influence when family leaders decide
to start planning for the transfer of their wealth. It is important to continuously discuss how this should evolve, when it is appropriate to bring heirs into the wealth management process, and to what degree.” Once the family patriarch
and / or matriarch deem it appropriate to bring their heirs and beneficiaries into the wealth management process, there are certain considerations to bear in mind.
Generational differences
Meeting the twin goals of funding one’s retirement years and building wealth for the next generation requires careful planning. Accommodating both short-term cashflow needs and long-term wealth creation objectives demands a more sophisticated portfolio structure and investment plan, and challenges can arise regarding how best to accomplish this.
The older generation has discipline and experience on their side, having built up the family’s wealth over many years. However, they may lean toward traditional approaches, favouring what has worked in the past, which could cause them to overlook innovative investment opportunities they’re less familiar with; or years of experience may have made them more cautious, leading to a level of risk aversion that could hinder their ability to achieve their long-term legacy-building goals. The younger generation brings a very different perspective. Having grown up in a technology-driven, on-demand culture, they may gravitate towards the latest financial products and trends, preferring a self-directed approach to investing. However, the knowledge and experience needed to stick to a disciplined, long-term plan may pose more of a challenge.
Proactively address concerns
To ensure continuity and to avoid conflict, it is essential to have an agreed-upon framework for how a family approaches wealth building over the long term. Educating family members on the philosophy, strategy and goals of a wealth management plan goes a long way to achieving this. During this process, it is common for queries and concerns to arise, and it is important to address these openly and collectively.
Consider, for example, the popularity of values-based investing among younger investors. Environmental, social and governance factors (ESG)—which may not have formed part of a historic investment plan—should be considered, and the merits debated, to ensure all parties are aligned. In the same vein, educating the younger generation on the effect of compounding, and the importance of sticking with a plan despite the vagaries of the markets, is essential to avoiding costly mistakes.
Financial literacy
The matter of financial literacy applies equally to the older generation, which often engages with news and media in very different ways to their adult children and grandchildren. While they may prefer meeting face-to-face with their wealth advisor, the younger generation may be more comfortable using online finance tools and self-service platforms. Bridging these preferences with a balanced approach is essential. Older family members may consider familiarising themselves with the particular podcasts or investment tools favoured by their family members to ensure they are informed on pertinent matters, and able to have constructive conversations. For the same reason, younger family members should become acquainted with their family’s wealth advisor to ensure that they are comfortable approaching them for specialist advice when need arises.
Wealth, tax and estate advice
Engaging the requisite experts is also key to ensuring success. In terms of creating an investment portfolio, establishing appropriate beneficiary structures within the portfolio will help to define objectives and mitigate conflict. Taking into consideration the far-reaching impacts of different trust structures and deciding if this is appropriate for your family’s particular circumstances can help protect assets for future generations. And an estate professional and a well-versed will can assist in alleviating some of the uncomfortable questions and guesswork that may arise when trying to ascertain what the desires of the deceased would have been.
“It’s rarely the investment plan, or the tax plan, that derails wealth transfer—it’s most often a lack of communication” says Sam Wegher, CC&L Private Capital Associate Wealth Advisor, Associate Advising Representative.1 “Having a sound strategy for asset growth and protection matters, but it’s equally important to know when to bring your beneficiaries and advisors into the conversation so that everyone is aligned.”
Conclusion
Generational differences impact wealth management in profound ways and can be a point of friction. Challenges can arise between parents and siblings, as well as between siblings, due to a lack of alignment as to what their collective financial aspirations are, and how best to achieve these. However, generational differences can also complement each other, allowing for meaningful collaboration and legacy building. While conversations about wealth can be uncomfortable, having these regularly—along with the advice and support of professionals on wealth, tax and estate matters—is essential for effective intergenerational wealth planning.