Review by Myra Salzer
So many books about inheritors are negative, and they tend to propagate stereotypes about those who inherit. Raised Healthy, Wealthy & Wise illustrates how inheritors are not all selfish, lacking direction, spoiled, and generally unfit to navigate in the world. Author Edwards-Pitt interviews numerous “successful” inheritors and finds the general themes of their lives that enabled them to thrive. If I had to summarize her conclusions, it would be that successful inheritors’ parents paid more attention to parenting than they did saving taxes or giving their money away. This has been my experience as well: all of our “successful” clients had someone who believed in them and loved them.
Interviewee after interviewee reported how their parents backed them up during difficult times with love and support instead of just writing checks. They also consistently had an opportunity to support themselves before receiving a significant inheritance. The parents recognize that coping with – and overcoming – adversity is a core skill developed through experience. The successful parents in the book’s examples didn’t always take the easy way out by writing checks, but rather by saying “no” when it was appropriate.
One of Edwards-Pitt’s conclusions surprised me, as it is counter to everything advisors have been taught. The general rule of thumb with regards to transparency to one’s heirs is that full disclosure is best, but Edwards-Pitt disagrees. The successful inheritors she interviewed, as a general rule, were not told in advance what they would get, or when they would get it. According to the author, this helps them thrive.
I really thought this was a great book overall, but I do take umbrage to that last conclusion. We have a client who would have lived his life quite differently had his trustees been up front with him (although he is the only example that comes to mind of someone with regrets about not knowing what to expect.). So, I respectfully disagree with the “partial disclosure” conclusion. I concur with the author that giving an heir an opportunity to thrive on their own will generally promotes high self-esteem, which is an essential component of “success.” To that point, I wonder why she didn’t interview “successful” inheritors who did, in fact, inherit at a very young age before they ever had an opportunity to earn and support themselves. We at The Wealth Conservancy have clients in that category.
If you have a chance to read the book, let us know your thoughts on it!