Spontaneous Family Wealth Discussions and Decisions Can Lead to Regrets, Finds Merrill Study
November 2, 2023 at 9:00 AM Eastern
NEW YORK, NY – Nearly four in five wealthy families have had unplanned discussions about wealth with 26% later regretting it, according to a new study published by the Merrill Center for Family Wealth™, a part of Merrill Private Wealth Management. The research found 33% of families increased family conversations about wealth since the Pandemic; however, many families dive in without a plan, process, or skills to make well-intended conversations productive. This can lead to unintended stress, potential family rifts and under-functioning heirs.
To better understand how families approach discussions about wealth and decisions around gifting money, distributing assets among heirs, managing shared assets, and preparing the rising generation to handle wealth, Merrill surveyed 270+ individuals from families with $50 million or more in assets. The report, Pulling back the curtain: Wealthy families open up about money, relationships and decision-making, offers insights from a rarely-studied demographic and provides valuable lessons and action steps for all families navigating the complexities of intergenerational wealth.
The survey found:
Video message from Valerie Galinsky
On screen title:
Valerie Galinskaya
Head of the Merrill Center for Family Wealth.
Valerie Galinskaya:
Hello I’m Valerie Galinskaya, head of the Merrill Center for Family Wealth.
My team and I have the privilege of working with individuals and families across the U.S., and their Merrill Private Wealth Advisors, to help them navigate the complexity that wealth brings. We help empower families to define the purpose of their wealth and to be intentional about wealth’s impact on themselves, their families, and their communities. Our clients include entrepreneurs, business owners, corporate executives, multi-generational families and professional athletes and entertainers.
Each is unique. But the one universal truth is that when families engage effectively on the subject of wealth and learn to navigate wealth together, they are more apt to sustain financial capital and family relationships for generations to come.
So what do thriving families who sustain wealth and values across generations do well? What are the challenges they face along the way? And what can we learn from that?
On screen image:
Cover of a report titled MERRILL CENTER FOR FAMILY WEALTH/Pulling back the curtain/Wealthy families open up about money, relationship and decision-making
Valerie: The Merrill Center for Family Wealth sought answers to these questions by surveying over 270 ultra high net worth individuals between November 2020 and July 2023.
Valerie is back on camera:
I am pleased to share with you some of the key findings from our research.
First off, nearly half of respondents said that financial decision-making in their family is shared among two or more generations.
Things can get complicated quickly when they’re also managing shared assets, such as a family home, investment property or a business. Over 50% of respondents reported that the biggest challenge to co-managing shared assets was limited governance, including:
On screen image:
Challenges in managing shared assets
· Undefined expectations of roles and responsibilities
· Lack of clarity on the purpose of shared assets
· And lack of transparency about how decisions are made and by whom
Valerie speaks over on camera graphic on screen:
Undefined expectations of roles and responsibilities
Lack of clarity on the purpose of shared assets
And lack of transparency about how decisions are made and by whom
Valerie back on cam speaking:
The good news is that more families are talking about wealth, a topic that has long been, and still is, considered taboo in many circles. We found that:
On screen image:
Families talking about wealth
· 1 in 3 families reported an increase in family wealth conversations
· 78% of those wealth conversations occurred spontaneously.
· More than 25% who had these spontaneous conversations later regretted them
Valerie speaks over on camera graphic on screen
One in three families reported an increase in family conversations since the pandemic.
Yet 78% of those wealth conversations occurred spontaneously.
And more than a quarter of those who had these spontaneous conversations later regretted them
Valerie on cam speaking:
It’s an unfortunate, unintended outcome when families dive in without a process or skills in place to make well-intended conversations and decisions productive. But there is another path.
On screen image:
Families and individuals meeting with members of the Merrill team to talk about wealth plan. They are sitting across desks or side by side discussing and looking at tools on a computer screen to help them plan
Valerie speaks while images are being shown
Based on research and our team’s practical experience working with several hundred families, we’ve seen how families that take the time to define their purpose and develop a thoughtful plan can not only help further their wealth but also their family members’ wellbeing.
Valerie is on camera again:
Sustaining wealth across generations and making shared family decisions is not easy. It’s a process that requires time and skills.
I invite you to look at the full report of our findings.
On screen image:
Bank of America logo
On screen copy:
Investing involves risk. There is always the potential of losing money when you invest in securities.
Merrill, its affiliates and financial advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill’s obligations will differ among these services. Investments involve risk, including the possible loss of principal investment.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.
Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”), and its agents.
Investment products: Are Not FDIC Insured
Are not Bank Guaranteed
May Lose Value
©2023 Bank of America Corporation
All Rights Rererved
Map #5963378
9/2023
[End of transcript]
“Our research pulls back the curtains on the intricacies of family wealth, a topic that still remains taboo in many circles,” said Valerie Galinskaya, head of the Merrill Center for Family Wealth and principal author of a report on the study findings. “When families learn to navigate wealth together, starting with an intentional plan and thoughtful conversations, they can do great things and thrive.”
Beyond looking at how families make decisions and communicate about wealth, the study also explored practices around lifetime gifting and the distribution of estate assets.
The survey found:
The Merrill Center for Family Wealth (the Center), a highly specialized group within Merrill Private Wealth Management, works closely with families to develop the skills and processes for more productive family wealth conversations and effective decision-making. In its report on the study findings, the Center provides recommended guidance based on years of experience facilitating family wealth discussions, particularly among families with substantial wealth, complex dynamics or circumstances.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Investing involves risk. There is always the potential of losing money when you invest in securities.
Merrill, its affiliates and financial advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill’s obligations will differ among these services. Investments involve risk, including the possible loss of principal investment.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.
Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”), and its agents.
Are Not FDIC Insured |
Are Not Bank Guaranteed |
May Lose Value |
© 2023 Bank of America Corporation. All rights reserved.
Julia Ehrenfeld, Bank of America
Phone: 1.646.855.3267
Julia.Ehrenfeld@bofa.com
MAP5963378
November 2, 2023 at 9:00 AM Eastern
Spontaneous Family Wealth Discussions and Decisions Can Lead to Regrets, Finds Merrill Study
NEW YORK, NY – Nearly four in five wealthy families have had unplanned discussions about wealth with 26% later regretting it, according to a new study published by the Merrill Center for Family Wealth™, a part of Merrill Private Wealth Management. The research found 33% of families increased family conversations about wealth since the Pandemic; however, many families dive in without a plan, process, or skills to make well-intended conversations productive. This can lead to unintended stress, potential family rifts and under-functioning heirs.
To better understand how families approach discussions about wealth and decisions around gifting money, distributing assets among heirs, managing shared assets, and preparing the rising generation to handle wealth, Merrill surveyed 270+ individuals from families with $50 million or more in assets. The report, Pulling back the curtain: Wealthy families open up about money, relationships and decision-making, offers insights from a rarely-studied demographic and provides valuable lessons and action steps for all families navigating the complexities of intergenerational wealth.
The survey found:
Video message from Valerie Galinsky
On screen title:
Valerie Galinskaya
Head of the Merrill Center for Family Wealth.
Valerie Galinskaya:
Hello I’m Valerie Galinskaya, head of the Merrill Center for Family Wealth.
My team and I have the privilege of working with individuals and families across the U.S., and their Merrill Private Wealth Advisors, to help them navigate the complexity that wealth brings. We help empower families to define the purpose of their wealth and to be intentional about wealth’s impact on themselves, their families, and their communities. Our clients include entrepreneurs, business owners, corporate executives, multi-generational families and professional athletes and entertainers.
Each is unique. But the one universal truth is that when families engage effectively on the subject of wealth and learn to navigate wealth together, they are more apt to sustain financial capital and family relationships for generations to come.
So what do thriving families who sustain wealth and values across generations do well? What are the challenges they face along the way? And what can we learn from that?
On screen image:
Cover of a report titled MERRILL CENTER FOR FAMILY WEALTH/Pulling back the curtain/Wealthy families open up about money, relationship and decision-making
Valerie: The Merrill Center for Family Wealth sought answers to these questions by surveying over 270 ultra high net worth individuals between November 2020 and July 2023.
Valerie is back on camera:
I am pleased to share with you some of the key findings from our research.
First off, nearly half of respondents said that financial decision-making in their family is shared among two or more generations.
Things can get complicated quickly when they’re also managing shared assets, such as a family home, investment property or a business. Over 50% of respondents reported that the biggest challenge to co-managing shared assets was limited governance, including:
On screen image:
Challenges in managing shared assets
· Undefined expectations of roles and responsibilities
· Lack of clarity on the purpose of shared assets
· And lack of transparency about how decisions are made and by whom
Valerie speaks over on camera graphic on screen:
Undefined expectations of roles and responsibilities
Lack of clarity on the purpose of shared assets
And lack of transparency about how decisions are made and by whom
Valerie back on cam speaking:
The good news is that more families are talking about wealth, a topic that has long been, and still is, considered taboo in many circles. We found that:
On screen image:
Families talking about wealth
· 1 in 3 families reported an increase in family wealth conversations
· 78% of those wealth conversations occurred spontaneously.
· More than 25% who had these spontaneous conversations later regretted them
Valerie speaks over on camera graphic on screen
One in three families reported an increase in family conversations since the pandemic.
Yet 78% of those wealth conversations occurred spontaneously.
And more than a quarter of those who had these spontaneous conversations later regretted them
Valerie on cam speaking:
It’s an unfortunate, unintended outcome when families dive in without a process or skills in place to make well-intended conversations and decisions productive. But there is another path.
On screen image:
Families and individuals meeting with members of the Merrill team to talk about wealth plan. They are sitting across desks or side by side discussing and looking at tools on a computer screen to help them plan
Valerie speaks while images are being shown
Based on research and our team’s practical experience working with several hundred families, we’ve seen how families that take the time to define their purpose and develop a thoughtful plan can not only help further their wealth but also their family members’ wellbeing.
Valerie is on camera again:
Sustaining wealth across generations and making shared family decisions is not easy. It’s a process that requires time and skills.
I invite you to look at the full report of our findings.
On screen image:
Bank of America logo
On screen copy:
Investing involves risk. There is always the potential of losing money when you invest in securities.
Merrill, its affiliates and financial advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill’s obligations will differ among these services. Investments involve risk, including the possible loss of principal investment.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.
Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”), and its agents.
Investment products: Are Not FDIC Insured
Are not Bank Guaranteed
May Lose Value
©2023 Bank of America Corporation
All Rights Rererved
Map #5963378
9/2023
[End of transcript]
“Our research pulls back the curtains on the intricacies of family wealth, a topic that still remains taboo in many circles,” said Valerie Galinskaya, head of the Merrill Center for Family Wealth and principal author of a report on the study findings. “When families learn to navigate wealth together, starting with an intentional plan and thoughtful conversations, they can do great things and thrive.”
Beyond looking at how families make decisions and communicate about wealth, the study also explored practices around lifetime gifting and the distribution of estate assets.
The survey found:
The Merrill Center for Family Wealth (the Center), a highly specialized group within Merrill Private Wealth Management, works closely with families to develop the skills and processes for more productive family wealth conversations and effective decision-making. In its report on the study findings, the Center provides recommended guidance based on years of experience facilitating family wealth discussions, particularly among families with substantial wealth, complex dynamics or circumstances.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Investing involves risk. There is always the potential of losing money when you invest in securities.
Merrill, its affiliates and financial advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill’s obligations will differ among these services. Investments involve risk, including the possible loss of principal investment.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.
Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”), and its agents.
Are Not FDIC Insured |
Are Not Bank Guaranteed |
May Lose Value |
© 2023 Bank of America Corporation. All rights reserved.
Julia Ehrenfeld, Bank of America
Phone: 1.646.855.3267
Julia.Ehrenfeld@bofa.com
MAP5963378
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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.
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Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation (“BofA Corp.”). Insurance and annuity products are offered through Merrill Lynch Life Agency Inc. (“MLLA”), a licensed insurance agency and wholly-owned subsidiary of BofA Corp.
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Bank of America Private Bank is a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation (BofA Corp.).
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