Alex had just turned 32 when his mother Joanna informed him that she was ready to retire and wanted to start the process of transferring his inheritance to him. He always knew this day would come, but he was not expecting it so soon.

Pursuing a career as a nature photographer, his interest was capturing images of landscapes and wildlife, not dealing with what he viewed as the burden of managing a portfolio of assets. The young nature lover had grown up enjoying financial security, but for him wealth also represented stress, having seen his parents fret over their financial choices. Moreover, he knew that his family had grown their wealth from very little, starting with his great-grand-parents’ modest furniture shop followed by decades of frugal spending, savvy business decisions, and prudent investments.

The thought of taking on all that responsibility weighed heavily on Alex’s mind. He much preferred the world of nature and photographs. Lenses, shutter speeds, the morning light on a lake – these made sense to him. Also, he hoped to use his talent and time for a good cause, much like Ami Vitale, one of the world’s most celebrated conservation photographers.

An unexpected reaction

From Joanna’s point of view, this reaction made no sense. “I was surprised when Alex reacted the way he did,” she said. “He should have been delighted. Also, he knew that I wanted to retire and have him take over some of the responsibility.”

For years, Joanna had been like many of her peers, waiting until she was ready to retire to actually plan it. In fact, a third of high-net-worth individuals (HNWIs) who are not yet retired say they haven’t started to make retirement plans.¹

She finally asked Alex to share his feelings. “He told me that he felt really unprepared and didn’t see himself as being financially savvy.”

Widespread lack of confidence

Alex was not alone in his uncertainty. Forty-seven percent of HNWIs who come from generational wealth agree that they lack confidence in the soundness of their financial decisions.²

Although Joanna felt bad about the stressful effect her announcement had on Alex, she firmly believed that the inheritance should be settled sooner rather than later. Not only did she want to retire, but she wanted to be sure that Alex had his inheritance in order while she and Alex’s father were still in good health and could monitor the transfer.

Then, she came up with a plan: she would register her son for a NextGen seminar from Quintet. Meeting others facing the same predicament and getting advice from experts would be both reassuring and informative.

The seminar

Martine, one of Quintet’s advisors who led the Next Gen seminar, explained: “I saw that Alex was not comfortable having been thrust into the role of heir of a significant fortune.”

She helped to set Alex on the right course. After participating in the seminar, he had a much clearer understanding of the steps he would need to take to be able to confidently manage his inheritance. First, he understood that he would need to hone his financial skills. Next, he would have to expand his knowledge of markets and financial products. What Alex and Joanna also learned was that she and Alex’s father would themselves need to better plan the transfer and clearly communicate the steps to their son. 

Six months later and with the transfer of the inheritance underway, Alex and Joanna say they both feel relieved. He now views his inheritance as a responsibility that he is optimistic about taking on. Also, he understands that it can play a crucial role in his mission to draw attention to climate change and the need for sustainable living.

Indeed, nearly one in three HNWIs who come from generational wealth share the view that wealth grants them the chance to follow their passions and purpose.³

Working for a better future

“I’ve already begun to set up a non-profit organisation that will help young photographers whose work bears witness to climate change get more recognition and, in turn, persuade politicians to take action,” he said. “Also, with my new confidence in managing wealth, I feel as though I’m honouring the legacy of my grand-parents and great-grandparents and that they would be proud.”

A few figures on passing on wealth to the next generation

47 % of HNWIs who come from generational wealth agree that they lack confidence in the soundness of their financial decisions, according to an Ipsos study.

32 % of HNWIs who come from generational wealth share the view that wealth grants them the chance to follow their passions and purpose.

27 % NWIs who are not yet retired say they haven’t started to make retirement plans.

Quintet Private Bank, founded 75 years ago, is headquartered in Luxembourg and operates across Europe and the UK, managing over €90 billion in client assets. Quintet operates under the following names: Brown Shipley in the UK, InsingerGilissen in the Netherlands, Merck Finck in Germany, Puilaetco in Belgium, and Quintet in the rest of Europe.

BlackRock is the world’s leading asset manager, with assets under management of $11.5tn.^*  In 2023, Quintet Private Bank selected BlackRock to extend its investment capabilities.

^{*as at the end of September 2024.}

^{2. 47% percent of HNWIs who come from generational wealth agree with the statement “I am not always certain whether I've made a good financial decision or not”.}

^{1, 2, 3. Research was conducted online by Ipsos UK on behalf of Quintet and BlackRock between 19th August and 27th September 2024. With a total of 595 adults aged 30 plus, who chose to take part in the survey: 165 in the UK, 147 in Germany, 169 in the Netherlands and 114 in Belgium. All respondents who claimed to have at least £1 million (UK) / €1 million (DE, NL, BE) in liquid/investable assets qualified and are defined as ‘High-Net-Worth’ (HNW) individuals throughout this article. Further information about the research can be found at stories.quintet.lu.}

^{2024 Quintet/BlackRock European Wealth Insights. THE RISE OF GENERATIONAL WEALTH: UNLOCKING NEW POSSIBILITIES}