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Wealthy mistrust next generation to be money smart

Those who have accumulated wealth in this country apparently aren't too convinced that the next generation is up to the task of protecting what they're bound to inherit. That seems to be the conclusion of a new survey by Barclays Wealth. New Jersey estate planning attorneys know that a key to a solution is knowing and leveraging the right options.

According to the survey, nearly one quarter of wealthy Americans don't trust that their children or stepchildren will have the wisdom required to keep the money they inherit growing. On a global basis, about one third of the wealthy have their doubts. The findings are distilled from responses from 2,000 high-net-worth people in 20 countries.

Another result of the poll suggests the truth of the adage that money can't buy happiness. About 36 percent of the Americans surveyed said that money has been the source of family conflict for them.

Officials with Barclays Wealth Americas say many of those surveyed, about 21 percent, say they're worried that the money they will bequeath will put undue stress on their heirs. Seventy percent say they think the need for professional estate planning and financial help is going to be huge. Despite that, only three percent say they don't intend to pass their wealth on.

Barclays representatives suggest a number of recommendations, all of which should be discussed fully with an attorney before action is taken. These include:

•· Establishing a trust to manage distributions

•· Including incentive clauses in trusts to encourage heirs to remain productive

•· Setting up a charitable trust through which a parent can reinforce important family values

It must also be noted that such methods of protection are not reserved only for the extremely wealthy. Someone with even basic assets, such as a home or life insurance benefits, can benefit from proper estate planning with the help of a qualified attorney.

Source: InvestmentNews.com, "Wealthy worried kids will fritter away inheritance," Liz Skinner, Nov. 15, 2011

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