Economy 5 min read By Arthur Ellington
Ultrawealthy families withhold inheritance details from heirs over fears of lost drive
Many of the wealthiest families are keeping the full scale of their fortunes from their children, worried that large inheritances will weaken their motivation to work. Surveys from Bank of America and Fidelity show a gap between parents' concerns and heirs' confidence.
Many of the world's wealthiest families are keeping the full extent of their fortunes from their children, out of concern that a large inheritance will dull their drive to work and be productive. Preparing heirs to take over family wealth has become a major preoccupation for ultrawealthy households as the older generation ages, and some are deliberately withholding information about how much there is.
According to a June study from Bank of America, 61% of ultra-high-net-worth respondents, defined as those with more than $25 million in investable assets, said they were concerned about their children's motivation. To address this, they are taking a range of steps. Around 51% are supporting their children's business ventures, 41% are adding provisions to trusts, and 36% are not disclosing the full amount of family wealth to them. The study also found that only about a third, 36%, of respondents said their heirs were "very prepared" for their inheritance. Leaving a legacy while instilling a desire to work was named the largest challenge in wealth planning by one UHNW baby boomer participating in the study.
Matthew Saul, founder and chief executive of wealth advisory firm Saul Wealth, told Fortune that families who say their children are not ready for large fortunes often have not given them enough opportunities to learn. "When a family says the kids aren't ready, what they usually mean is that nobody prepared them," he said. "That is a planning problem, and it is solvable." Saul argued that questions of the estate plan, the intended use of family property and philanthropic goals are conversations a family should have together, both while the older generation is alive and about what happens after it is gone. "There is no benefit to leaving the next generation in the dark," he said.
The approach is spreading as family wealth becomes more complicated to pass on. Longer lifespans extend the period in which several generations share financial decisions, and the transfer of businesses and other assets requires heirs to understand how to manage wealth, not only how to receive it. Saul said younger heirs often want to preserve their family's charitable traditions while giving in ways that reflect their own values, such as more hands-on involvement or a stronger emphasis on measurable impact. "What matters is how the family handles it," he said. "Values can be imposed passively, with one generation steering another without ever saying so, or they can be worked out through open dialogue."
A 2025 Fidelity study of parents aged 55 and older with at least $500,000 in investable assets found that inheritance conversations are often avoided. It reported that 68% of parents had not told their children what, or how much, they will inherit. About four in ten parents, 43%, did not believe their children could stick to a budget, and 40% were not confident in their children's ability to manage debt. Expectations also diverged: while 95% of adult children said they were ready to manage inherited wealth, a quarter of parents disagreed. "Families who co-plan by discussing wishes, roles and responsibilities together report greater confidence that their plans will be carried out seamlessly," the study said. David Peterson, head of Advanced Wealth Solutions at Fidelity Investments, said in a press release that planning for the future is about protecting relationships as well as wealth.
Many of the ultrawealthy are nonetheless involving their children in wealth planning as a way to build trust and responsibility. Katie Carlson, head of wealth strategy at Bank of America Private Bank, told Fortune that the study suggests preparing the next generation deserves as much attention as the wealth itself. She noted that 79% of respondents already involve financial advisers, at least to some degree, in estate-planning conversations with their children.
The Bank of America study also found that while 78% of wealthy business owners considered succession planning important to their wealth strategy, only 20% had a fully documented succession plan. Family conversations were among the biggest estate-planning challenges for business owners. Among wealthy business owners surveyed, 23% said they had inherited their businesses, up from 11% in 2024 and 5% in 2022. The study, which examined a $124 trillion wealth transfer, also found that more than nine in ten wealthy respondents, 92%, considered longevity important to financial planning.
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