‘Nobody prepared them’: The ultrawealthy worry wealth will dull their heirs’ ‘drive and desire’ and so some aren’t telling them how much there is

For the ultrawealthy, preparing children to inherit their fortunes is a long process that is much more than just transferring assets. The responsibility of managing their fortunes given to the younger generation has become a point of concern for the wealthiest families as they age—some are keeping the full amount from them.

According to a June study from Bank of America , 61% of ultra-high-net-worth respondents—defined as those with more than $25 million in investable assets by the study—said they were concerned about their children's motivation. They are taking actions such as supporting their children's business ventures (51%), adding provisions to trusts (41%) and not disclosing the full amount of family wealth to them (36%), the study found.

BofA also found that only about a third (36%) of those respondents say their heirs are "very prepared" for their inheritance.

"Leaving a legacy for my children while still instilling in them the drive and desire to work and be productive" was the largest challenge in wealth planning, according to a UHNW Boomer in the study.

But Matthew Saul, founder and CEO of wealth advisory firm Saul Wealth, told Fortune families that worry their children are unprepared for large fortunes often have not given them enough opportunities to learn.

"When a family says the kids aren't ready, what they usually mean is that nobody prepared them," he said. "That is a planning problem, and it is solvable."

"Whether it is the estate plan, the intention for a family property, or the philanthropic intent," Saul continued, "those are dialogues a family should have together, both during life and about what happens after the eldest generation is gone. There is no benefit to leaving the next generation in the dark."

That approach is being used by more of the ultrawealthy as their families are facing much more complicated futures. Longer lifespans extend the period during which multiple generations share financial decisions, and the transfer of businesses and other assets requires heirs to understand not only how to receive wealth, but also how to manage it.

And Saul says that younger heirs often want to preserve their family's charitable traditions while giving in ways that reflect their own values. They might favor more hands-on involvement or a greater emphasis on measurable impact.

"What matters is how the family handles it," Saul said. "Values can be imposed passively, with one generation steering another without ever saying so, or they can be worked out through open dialogue around shared family values and philanthropic goals and intentions. The point is the collective, the family unit and its mission, not what any one member wants on their own."