How Estate Planning Can Thwart the ‘Third-Generation Curse’


We are currently in the midst of what is being coined as the Great Wealth Transfer — a time during which Baby Boomers are projected to pass trillions to their heirs. Of the $84 trillion anticipated to be inherited by Gen X, Millennial and Gen Z heirs through 2045, $16 trillion will be transferred within the next decade, according to Cerulli Associates.

While these numbers seem staggering, there actually may not be much for younger generations to inherit because of the so-called third-generation curse — when wealth accumulated by one generation is lost by the third generation as a result of mismanagement and imprudent spending.