How do you want to be remembered?
The challenge of passing on wealth
Many of us face this quandary and for those with resources beyond personal needs it is a strategic question: How can you use your wealth to benefit the generations to come?
Leaving your financial legacy is straightforward in principle, but complex in practice. For one thing, it’s not certain that your wealth will actually make the next generation better off. More than two-thirds of high net worth individuals worry that too large of an inheritance could actually harm their loved ones.
That’s because large gifts can unintentionally lead to family conflicts, dependency and mismanagement. In this respect, it is best to heed Warren Buffet’s legendary advice: "Leave the children enough so that they can do anything, but not enough that they can do nothing".
This concern drives many to consider philanthropy as a deliberate, values-driven alternative to direct wealth transfer. This approach is increasingly important, especially considering the fact that an estimated USD 12 trillion will shift towards philanthropic causes over the next two decades.
We understand that leaving your wealth to philanthropic causes is more than a financial decision – it is a deeply personal one that requires careful planning.
Strategies for effective wealth and philanthropy planning
Today, we are seeing more clients involving their heirs early on and agreeing to shared goals. Some common approaches include:
- Funding systems-change initiatives that address the issues they care about most — such as policy advocacy, evidence generation, institutional capacity and cross sector pilots aimed at durable problem solving.
- Using a mix of tools from giving to investing – combining grants with impact investments and mission-aligned capital to mobilize more resources and drive measurable social returns.
- Practicing collaborative philanthropy by forming donor coalitions, pooled funds and coordinated partnerships with other funders to align strategies and scale effective solutions.
What unites our strategies is a common desire to plan for the future with clear objectives and an appropriate time horizon.
At Pictet Philanthropy Services, our specialists help clients translate values into lasting impact. We understand that leaving your wealth to philanthropic causes is more than a financial decision, it is a deeply personal one that requires careful planning.
