April 14, 2005 | Read Time: 1 minute
Philanthropy, Heirs & Values: How Successful Families Are Using Philanthropy to Prepare Their Heirs for Post-Transition Responsibilities
by Roy Williams and Vic Preisser
Seventy percent of families lose control of their assets, or see relationships between relatives fray, when money is transferred from one generation to the next, write Roy Williams and Vic Preisser. Where those families fail, the authors say, is in neglecting to prepare their children for wealth and financial responsibility.
Mr. Williams and Mr. Preisser, of the Williams Group, a California company that specializes in estate planning, say the best way to ensure that heirs are ready to inherit money is to introduce them to philanthropy at a young age. Their book, based on a study of more than 3,000 affluent families and 90 family foundations, shows how parents can inculcate charitable values at every stage of a child’s development.
During the “awakening years” from 5 to 10, the authors say, children should be given allowances and provided the opportunity to donate a portion to churches, schools, or sports teams. For children ages 11 to 15, causes like the environment or animal welfare can develop into long-term charitable interests. As young people near college age, they should be encouraged to develop their involvement in philanthropy and consider whether it complements careers they might want to pursue.
As young people reach adulthood, families should bring sons and daughters into discussions about their inheritance and responsibilities, the book says. By age 30, heirs can begin to pass down the values they have learned to their own children.
Publisher: Robert D. Reed Publishers, P.O. Box 1992, Bandon, Ore. 97411; (541) 347-9882; fax (541) 347-9883; http://www.rdrpublishers.com; 165 pages; $29.95; I.S.B.N. 1-931741-51-4.
