{"id":110867,"date":"2026-08-02T08:03:10","date_gmt":"2026-08-02T08:03:10","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/110867\/"},"modified":"2026-08-02T08:03:10","modified_gmt":"2026-08-02T08:03:10","slug":"what-ultra-wealthy-families-do-differently-with-money-according-to-a-ubs-private-wealth-advisor","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/110867\/","title":{"rendered":"What ultra-wealthy families do differently with money, according to a UBS private wealth advisor"},"content":{"rendered":"

The largest handoff of private wealth in modern history is already underway. Cerulli Associates<\/a> projects that wealth transferred through 2048 will total $124 trillion, with $105 trillion expected to flow to heirs and $18 trillion going to charity. More than half of that volume, roughly $62 trillion, is expected to come from high-net-worth and ultra-high-net-worth households, which together represent about 2% of all households.<\/p>\n

The planning gap shows up even at the top of the market. The UBS Global Family Office Report 2026<\/a>, which surveyed 307 family offices across more than 30 markets with an average net worth of $2.7 billion, found that only 35% have a defined succession plan in place.<\/p>\n

Aileen Schruth<\/a>, a Private Wealth Advisor at UBS, works with families on exactly that set of problems. Here’s what she shared about the structures, conversations, and mistakes that determine whether a fortune lasts.<\/p>\n

Wealthy families build structure first and choose investments second\"estate<\/p>\n

Entities, trustees, and tax status come first. The portfolio decisions come after.<\/p>\n

(New Africa \/ Shutterstock)<\/p>\n

“Wealthy families focus on structure. They identify the appropriate entities, trustees, and tax status. Investments are a secondary consideration,” Schruth said.<\/p>\n

That ordering runs opposite to how most people approach money, and the paperwork lags almost everywhere you look. A Pew Research Center survey<\/a> of 8,750 U.S. adults conducted in September 2025 found that about three-in-ten have created a will describing what to do with their assets and belongings after they die, and a similar share have created a living will or advance health care directive.<\/p>\n

Caring.com’s annual Wills and Estate Planning Study<\/a>, conducted with YouGov among more than 2,500 American adults, points to the same picture and identifies the reasons behind it. The most significant explanations respondents gave for not having a will or trust were that it sits low on the to-do list and that they don’t believe they have enough assets to leave anyone.<\/p>\n

The biggest myth about how rich families manage their wealth<\/p>\n

“The biggest myth is that wealthy families will stay wealthy in perpetuity. In reality, these families need great partners: legal, accounting, investments, philanthropic, etc. And there needs to be an emphasis and commitment to educating and engaging the younger generations,” Schruth explained.<\/p>\n

The research supports that and points at communication rather than markets. The UBS Global Next Generation Report 2026<\/a>, which surveyed more than 170 members of the inheriting class, found that among heirs who reported feeling tension about wealth transfer, 33% named communication gaps or avoidance as the primary source of conflict, ahead of disagreements over lifestyle, spending, or fairness. Nearly half said the previous generation conducted no structured wealth transfer at all.<\/p>\n

Advisors report the same pattern from the other side of the table. Cerulli Associates<\/a> found that 81% of high-net-worth practices consider family meetings and regular communication the most effective wealth transfer planning strategy, ahead of educational support at 59% and organized succession planning at 31%.<\/p>\n

When wealthy families start talking to their kids about money\"Young<\/p>\n

A portion to spending, a portion to saving, and a portion to giving is where the lesson starts.<\/p>\n

(Yulia Raneva \/ Shutterstock)<\/p>\n

“Families vary widely, but we encourage our clients to start the conversation at a very young age. How did the family earn its wealth? What does the family want the wealth to accomplish? What organizations and philanthropies are important? A young child can receive an allowance and designate a portion to spending, a portion to saving, and a portion to giving. As soon as a child earns taxable income, I start talking about Roth IRAs and investments that are meaningful to the child,” Schruth shared.<\/p>\n

The early start has real support behind it. A study authored by behavior experts at Cambridge University and published by the UK’s Money Advice Service<\/a> found that by the age of seven, most children have grasped how to recognize the value of money and count it out, understand that money can be exchanged for goods, and are capable of complex functions such as planning ahead and delaying a decision until later.<\/p>\n

The heirs themselves agree. The UBS Global Next Generation Report 2026 found that while about 44% of respondents first discussed wealth in early adulthood and 37% during their teenage years, 56% believe parents should engage on the topic earlier, ideally during childhood or adolescence.<\/p>\n

The Roth IRA point is worth underlining for anyone at any income level. The IRS<\/a> sets no age limit on making regular contributions to traditional or Roth IRAs, and the agency’s own example describes a grandmother making a contribution on behalf of a college student who earned compensation that year. According to Charles Schwab<\/a>, minors can contribute based only on the limits of their own earned income, not that of their parents.<\/p>\n

Do wealthy kids get allowances or jobs? Here’s what actually works\"Teenager<\/p>\n

A first job supplies the accountability that an allowance alone can’t teach.<\/p>\n

(Dean Drobot \/ Shutterstock)<\/p>\n

Neither an allowance nor a summer job solves entitlement on its own. Schruth argued for both, plus a third ingredient. “I think both are important parts of raising a financially responsible child. It’s important to be able to make independent financial decisions, to make mistakes, and to be responsible. There is no silver bullet, but I think a combination of having a job for accountability and having an understanding of the family’s philanthropic intent can help with the entitlement issue,” she noted.<\/p>\n

Letting kids make mistakes turns out to be the part parents choke on. A Wells Fargo<\/a> study conducted with Ipsos in 2025, surveying 1,587 U.S. parents, found that 71% of parents with children ages 5 to 17 give an average weekly allowance of $37, and while 85% believe an allowance helps kids learn about spending, 65% find it difficult to step back and let their kids make their own money mistakes.<\/p>\n

The money mistake wealthy parents make with their kids<\/p>\n

“For me, the biggest mistake is not talking about money. Children are well-aware of wealth. Avoiding the topic doesn’t mean the child does not understand. It is much better to have an open dialogue and to educate your children about your values regarding wealth,” Schruth emphasized.<\/p>\n

Avoidance is close to universal, at every tax bracket. T. Rowe Price’s annual Parents, Kids & Money Survey<\/a>, which sampled more than 2,000 parents of 8- to 14-year-olds and their kids, found that 41% of parents reported some reluctance to discuss money matters, 53% expect their kids to bring up the topic if they have questions, and 40% said they don’t always know the best way to talk to their kids about financial topics.<\/p>\n

A U.S. Bank<\/a> survey put it even more starkly, finding that parents would rather talk to their kids about their choice of candidate in a presidential election than about their finances, with 63% describing the money conversation as uncomfortable.<\/p>\n

Why more money often means more family conflict<\/p>\n

“Family businesses are a great way to build and maintain wealth, but they can also create a significant amount of conflict. Another point of contention is around inheritances. For both, transparency is key. In the business, what are the roles and responsibilities? How is everyone compensated? What happens at a liquidity event? For inheritance, a clearly articulated estate plan is crucial,” Schruth said.<\/p>\n

Family businesses aren’t a niche category, either. According to the Conway Center for Family Business<\/a>, family businesses account for 54% of U.S. gross domestic product, generate 59% of the country’s employment, and represent 83.3 million jobs, with roughly 35% of Fortune 500 companies family-controlled.<\/p>\n

Yet the handoff is where they stumble. Data compiled by SCORE<\/a>, the small business mentoring nonprofit, found that about 30% of family businesses survive the transition from first to second generation ownership and 12% survive the move to the third, while 47% of family business owners expecting to retire within five years have no successor identified.<\/p>\n

The real reason siblings end up fighting over an inheritance\"Two<\/p>\n

Equal dollar amounts don’t mean equal liquidity, access, or responsibility.<\/p>\n

(New Africa \/ Shutterstock)<\/p>\n

“When the dollar value of the inheritance is equal, but the assets are not \u2013 a $10m portfolio, a $10m interest in a family business, a $10m real estate portfolio can be viewed quite differently. The equal dollar amounts may seem ‘fair’, but the liquidity, accessibility, and responsibility are not equal,” Schruth pointed out.<\/p>\n

For example, here’s one possible scenario. One sibling gets a brokerage statement. Another gets a job, a board seat, and a decade of obligations. The spreadsheet says they’re even, but nobody in the family feels that way.<\/p>\n

How over communicating helps families avoid a blowup<\/p>\n

“I believe we have avoided many blow-ups by over-communicating. We try to have as many conversations ahead of time and with as many generations as appropriate. UBS’s Family Office Solutions group has experts in trust and estates planning, family advisory, family governance, and more. My team and I leverage that group to try to identify any problems before they occur,” Schruth offered.<\/p>\n

Industry research points the same direction. The UBS Global Next Generation Report 2026<\/a> found that families with strong communication governance are 74% more likely to be actively planning and transferring their wealth than those without it. The UBS Global Family Office Report 2026<\/a> found that 52% of relevant family offices plan to introduce financial education programs, with around 40% looking to engage younger generations through investment committee involvement or entrepreneurial ventures.<\/p>\n

How wealthy families really think about art as an investment\"Person<\/p>\n

For most families, a collection begins as passion and only later requires a plan.<\/p>\n

(SeventyFour \/ Shutterstock)<\/p>\n

“For most clients, art is passion first, not an investment strategy. We do not view it as a traditional asset class, but a significant collection still requires sophisticated planning around valuation, insurance, estate and succession considerations, philanthropy and, at times, liquidity. The key is to manage the collection responsibly without losing sight of why the family collected it in the first place,” Schruth explained.<\/p>\n

The market itself is stabilizing after a rough stretch. The tenth edition of The Art Basel and UBS Global Art Market Report 2026<\/a>, authored by Dr. Clare McAndrew of Arts Economics, found that global sales increased 4% year-on-year to an estimated $59.6 billion in 2025 after two years of declining values, with dealer sales rising 2% to $34.8 billion and public auction sales up 9% to $20.7 billion. The U.S. accounted for 44% of global sales by value.<\/p>\n

One habit of wealthy families anyone can copy tomorrow<\/p>\n

You don’t need a family office to steal this one. “Strategize well before there is a need. Put your financial goals and family mission statement in writing and revisit that document annually. Hold yourself accountable to the goals you have established,” Schruth advised.<\/p>\n

Thank you for reading. For more stories about your financial health, I invite you to follow me<\/a> on Yahoo.<\/p>\n

More about our expert:<\/p>\n

Aileen Schruth<\/a> is a Private Wealth Advisor at UBS, where she advises ultra-high-net-worth families on entity structure, trustee selection, tax status, estate and succession planning, philanthropy, and multigenerational family governance. She works alongside UBS Family Office Solutions, a group staffed with specialists in trust and estates planning, family advisory, and family governance, and she has appeared on CNBC discussing collectors and the art market from Art Basel. Her practice emphasizes preparing rising generations through early, candid family conversations rather than treating wealth transfer as a one-time legal event.\u00a0<\/p>\n

Please Note: This article is meant to inform and spark good conversations at your own kitchen table, not to serve as personalized financial, tax, investment, or legal advice. Every family’s situation is genuinely different, and the right structure for one household can be the wrong one for another. Figures cited here, including contribution limits and market data, change over time. Before you make any decisions about trusts, estate plans, retirement accounts, business succession, or collectibles, please talk with a qualified financial advisor, tax professional, and estate attorney licensed in your state.<\/p>\n","protected":false},"excerpt":{"rendered":"The largest handoff of private wealth in modern history is already underway. Cerulli Associates projects that wealth transferred…\n","protected":false},"author":2,"featured_media":110868,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[54156,38622,54159,17609,54160,18833,54158,223,54157],"class_list":["post-110867","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-aileen-schruth","tag-family-offices","tag-global-family-office","tag-private-wealth","tag-schruth","tag-shutterstock","tag-succession-plan","tag-ubs","tag-wealthy-families"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117024876637065589","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/110867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=110867"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/110867\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/110868"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=110867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=110867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=110867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}