Campden FB: How to avoid “Sudden Wealth Syndrome”
While guiding large multigenerational families, advisors at Omnia Family Wealth have seen the aftermath of heirs who were unprepared to manage wealth. It’s a situation they call “Sudden Wealth Syndrome” where family fortunes deteriorate after wealth was unexpectedly transferred from one generation to the next without proper preparation or planning.
Omnia Family Wealth recently spoke to Campden FB about Sudden Wealth Syndrome and shared three approaches to help families prevent it. These include:
- Holding structured family meetings where second and third generation heirs have a forum to ask questions and learn about the family’s values and establish long-term goals.
- Providing financial educational opportunities for second and third generation heirs.
- Establishing a mission and purpose for the family’s wealth.
“Sudden Wealth Syndrome is preventable with family meetings, next generation education and family governance strategy,” Steven Wagner, Omnia co-founder and chief executive told Campden FB. “It all boils down to opening the doors of communication and talking to your heirs about the legacy you want to leave.”
For more details on the three approaches for preventing Sudden Wealth Syndrome, see the full Campden FB article here.