When Should the Next Gen Access Wealth? How Much is Enough?
Published by Ryan Gollan / 11 Feb 2025
The Age-Old Question in a New World
For centuries, ultra-high-net-worth (UHNW) families have debated when and how much of their wealth the next generation should inherit. Traditionally, the answer depended on cultural norms, business structures, and the maturity of the heirs. Today, however, the world is vastly different: social media influences identity, financial literacy is accessible at younger ages, and the global economy is more volatile than ever.
As a result, many families are rethinking wealth transfer to ensure their next-gen heirs are not only financially prepared but also emotionally and intellectually equipped to handle wealth responsibly.
The Shifting Mindset: Next-Gen Behaviors & Expectations
This generation: Gen Z and younger Millennials think about wealth differently than their predecessors. Based on global studies and behavioural observations, key trends include:
🔹 Purpose Over Privilege: Many young heirs seek meaning and impact over traditional luxury. A study by UBS found that 78% of wealthy Millennials prefer investing in ESG-driven businesses rather than simply inheriting a passive portfolio.
🔹 Financial Independence vs. Legacy Responsibility: Unlike past generations that were groomed to take over the family business, many next-gen heirs seek financial autonomy through entrepreneurship, venture capital, or philanthropy.
🔹 Digital & Fast-Paced Thinking: This generation is exposed to financial knowledge earlier, from social media influencers to investment platforms like crypto and NFTs. However, access to information does not always translate to financial wisdom.
🔹 Mental Health & Wealth Anxiety: Many wealthy families are realising that instant access to vast amounts of money can trigger identity crises, lack of motivation, or even mental health issues. Next-gen heirs often struggle with the pressure to live up to their family’s legacy while also forging their own path.
With these changing behaviours in mind, when is the right time to give them access to wealth?
When Should the Next Gen Access Wealth?
Instead of a fixed age threshold, leading family offices now follow a staggered approach based on capability, values, and demonstrated responsibility. Below are three structured wealth transfer models that many UHNW families are implementing today:
1. The Tiered Access Model
Rather than a one-time inheritance at 21 or 25, families grant access to wealth in controlled stages:
🔹 18-21: Limited trust distributions for education, basic living expenses.
🔹 25-30: Increased access with financial oversight; funds for entrepreneurship, homeownership, or philanthropy.
🔹 30+: Larger access based on demonstrated responsibility and involvement in wealth stewardship.
Why? This model prevents entitlement, encourages financial education, and allows heirs to mature into wealth.
2. The "Earn Your Access" Model
Some families believe that access to wealth should be based on merit, contribution, and alignment with family values rather than simply age.
🔹 Requirements Before Accessing Wealth:
Achieving a certain level of education or professional milestones.
Successfully running an independent business or career for X years.
Engaging in philanthropic or impact-driven work aligned with family values.
Why? This model ensures heirs develop resilience, work ethic, and appreciation for wealth.
3. The Stewardship & Responsibility Model
Instead of full access, heirs are trained as "stewards" of wealth through family governance structures, philanthropy, and investment training.
🔹 How It Works:
Next-gen members start managing portions of the family wealth in controlled investment portfolios.
They are involved in decision-making for family foundations or donor-advised funds.
They must co-invest with the family office before getting direct wealth access.
Why? This model teaches financial literacy, governance, and long-term stewardship rather than passive inheritance.
How Much is the Right Amount?
One of the most debated questions is how much wealth should next-gen heirs receive to feel secure yet motivated to contribute to society.
Guiding Principles for Setting Wealth Allocation:
🔹 "Enough to do something, but not enough to do nothing" – Inspired by Warren Buffett, this philosophy suggests heirs should have enough financial support to pursue meaningful work but not so much that they lack drive or ambition.
🔹 Customising the amount based on personality – Some next-gen heirs thrive with financial freedom, while others may struggle with too much liquidity. Personalised allocations ensure a balance between access and responsibility.
🔹 Allocating different wealth buckets – Instead of full inheritance, some families split wealth into different buckets:
Personal security fund (basic needs)
Growth capital (for investments, businesses, or philanthropy)
Legacy fund (long-term generational wealth preservation)
🔹 Teaching wealth responsibility through philanthropy – Next-gen heirs often learn best by giving. Many UHNW families introduce philanthropy as an entry point to managing wealth, helping young heirs understand the power of capital beyond personal consumption.
Final Thoughts: Preparing the Next Gen for Wealth
🔹 "Wealth is a tool, not an identity." Young heirs today must learn how to manage wealth, rather than let wealth define them.
🔹 Timing is everything. The right age for wealth access is less about age and more about readiness. Families should focus on financial education, stewardship, and responsibility rather than just setting an inheritance age.
🔹 It’s about values, not just money. Wealth transfer should be framed around purpose, responsibility, and long-term impact: helping next-gen heirs understand why they are inheriting wealth, not just how much.
🔹 What do you think? Please feel free to reach out.
