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    Home » Blog » What Is Intergenerational Planning, and Why 90% of Wealth Doesn’t Survive Without It
    What Is Intergenerational Planning
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    What Is Intergenerational Planning, and Why 90% of Wealth Doesn’t Survive Without It

    Sandeep N SettyBy Sandeep N SettyAugust 7, 20252 Mins Read
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    What if I told you that 90% of families lose their wealth by the third generation?

    This isn’t a myth. It’s the uncomfortable truth.

    But the bigger question is: Why?
    Because most families plan for the money, but not for the mindset. They pass down assets, but not the education, systems, or values needed to preserve them.

    This is where intergenerational planning becomes a necessity—not a luxury.

    So, What Is Intergenerational Planning?

    At its core, intergenerational planning is about preserving both wealth and wisdom. It’s the process of ensuring that what you’ve built doesn’t just last—it thrives.

    Think of it as building a bridge across generations. On one side is your hard-earned success. On the other is your family’s future. And the bridge isn’t made of just money—it’s made of trust, clarity, governance, and guidance.

    Why Most Families Lose Their Wealth

    According to global studies:

    • 70% of wealth is lost by the second generation
    • 90% is gone by the third

    Not because of bad investments—but because of poor communication, lack of preparation, and emotional disconnect.

    When heirs aren’t prepared, and when families avoid hard conversations, even the strongest financial foundation can collapse.

    4 Key Components of Intergenerational Planning

    1. Inheritance Structures
    Set up trusts, holding companies, or life-stage gifting. Ensure your assets are transferred thoughtfully and tax-efficiently, aligned with your vision.

    2. Family Governance
    Establish a family constitution. Host regular meetings. Define shared values and decision-making processes. Governance brings clarity, unity, and sustainability.

    3. Preparing Heirs
    Begin financial literacy early. Involve the next generation in business or philanthropic decisions. Turn heirs into responsible stewards, not just recipients.

    4. Tax-Efficient Structuring
    Structure holdings in a way that minimizes transfer taxes and optimizes asset protection—both in India and internationally.

    Legacy Isn’t What You Leave Behind. It’s What You Leave Within.

    Intergenerational planning goes beyond wealth. It’s about identity, purpose, and continuity.

    Whether you’re running a family business, managing a diversified portfolio, or setting up a family office, a well-crafted intergenerational plan ensures that your story continues—intact, inspired, and intentional.

    Final Thought

    If you want your children and grandchildren to not just inherit your wealth but to honor and grow it, this is the time to act.

    I work with business families and family offices across Bengaluru to build legacy systems that last. If this resonates with you, I invite you to start a quiet, meaningful conversation.

    Schedule a private session. 
    Write an email to sandeep@sandeepnsetty.com to your free guide: “The Legacy Builder’s Checklist”

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    Sandeep N Setty
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    Sandeep N Setty is a Financial Advisor, Author, and Speaker specializing in asset structuring and inter-generational planning. He helps business owners and affluent families achieve financial independence and lasting wealth.

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