Having the Talk: How to prepare the next generation for significant wealth

How and when should wealthy parents educate their children about their assets and potential trusts? Having “The Talk” about wealth is a topic that provokes uncertainty and delay. Avoiding the exchange, however, only compounds the difficulties. Anxiety and reluctance about "The Talk" are understandable given the many risks associated with inherited wealth. Without the right guidance and values, this is a valid concern. Wealthy children are raised in an environment that naturally provides them with advantages over competitors, which can cause self-doubt even in the most talented and well-grounded of maturing adults. Here are a few central guidelines to making "The Talk" an effective and positive experience for both generations:

• Keep the emphasis on values
• Be proactive – and timely
• Don’t go it alone