Let’s look a little more closely at these differences, using a three-generation family as a template. What are their priorities? What do they want their wealth to achieve?

Generation 1: The architects of legacy

For the first generation—the family elders, often in their 60s through 80s—priorities shift from building family wealth towards enjoying the fruits of their labour, managing health concerns and solidifying their legacy.

• Travel: With newfound time, many want to explore the world or reconnect with distant relatives. That requires careful budgeting for travel expenses while preserving their financial base.
• Healthcare: As health becomes paramount, it is crucial to plan for both routine medical costs and unexpected long-term care, considering both public and private coverage options.
• Retirement planning: Ensuring a stable income stream—whether through pensions, annuities, or investment portfolios—lays the foundation for peace of mind in retirement.
• Legacy and philanthropy: Many also focus on structuring their estates for tax efficiency and meaningful giving, whether to family, charities, or causes close to their hearts.

Generation 2: The stewards and builders

The second generation—the children of the founders, now in their 30s to 50s—shoulders the dual responsibilities of supporting both their elders and their own children. They are at the height of their careers, managing businesses, and making pivotal life decisions. What do they tend to care most about?

• Caregiving: Many adults in this bracket act as caregivers, balancing their parents’ increasing needs with their children’s development.
• Parenting: Raising children involves significant expenses and planning, from everyday costs to post-secondary education savings.
• Financial education: Passing on financial literacy is crucial, helping the next generation develop healthy habits and wise decision-making skills.
• Managing a business: For entrepreneurial families, business succession planning is vital to ensure continuity and harmony.
• Mortgage and investing: Navigating the Canadian housing market and making sound investment choices are central to building and protecting wealth during these decades.

Generation 3: The next generation of opportunity

The youngest family members, from newborns to young adults, bear both the promise of the future and a big responsibility to steward the family legacy. But their goals and priorities can often differ radically from those of their parents and grandparents. A robust wealth plan can take those differences into account while laying the groundwork for responsible wealth stewardship for years to come.

• Education: RESP (Registered Education Savings Plan) contributions, scholarships and education trusts can enable ambitious academic journeys.
• Home-buying: Early planning can give young adults a leg up in an increasingly competitive real estate market.
• Entrepreneurship: Supporting budding entrepreneurs within the family fosters innovation and independence.
• Early investing: Teaching the value of saving and investing, even in small amounts, can instill habits that pay dividends over a lifetime.
• Career planning: Guidance and resources in education and career development offer the next generation a firm foundation for the future.

Effective wealth planning across generations is more than a matter of distributing assets towards their varying priorities. There are emotional nuances to consider, particularly around legacy and business management; tax and estate laws must be accounted for, along with the individual career and family goals of each generation. By creating adaptive strategies, families can avoid conflict, reduce uncertainty, and empower each member to thrive according to their own values and ambitions.

Autonomy meets collaboration

How can strategic wealth planning manage that? To my mind, it requires a balance of structure and flexibility. Clear mandates and family plans bake in expectations for each generation alongside areas for autonomy and self-determination (appropriate to each generation’s life stage, of course).

• Mandates: These are formal agreements outlining the roles, responsibilities and levels of authority for each family member and their advisors. They provide clarity on who manages which assets, how decisions are made, and the protocols for conflict resolution.
• Family plan: This overarching document sets out the family’s shared vision, values and long-term objectives. It addresses investment policy, philanthropic priorities, education funding and succession plans.
• External advisors: By including trusted external advisors—such as accountants, lawyers, and business consultants—families can access specialized expertise and an objective perspective, anchoring decisions in best practices and up-to-date knowledge.
• Autonomy within structure: Each generation should have the freedom to pursue their aspirations and manage their day-to-day finances, within the boundaries of the family plan. This balance encourages engagement and innovation while protecting the family’s overall wealth and cohesion.

One last thought: Families (and their advisors) should always bear in mind that talk is cheap—so do it! Implementing effective long-term financial strategies is not a one-time event but an ongoing process, and ongoing, open communication is fundamental to that process. Clear, well-thought-out structures and plans not only need to be put in place, but also revisited, revised, talked about and debated.

Every family’s journey is unique, of course, and while models and frameworks can provide guidance, tailored strategies are essential. Trusted, experienced wealth advisors can help ensure that a strategic wealth plan is financially sound, tax efficient, and also aligned with your family’s vision and values.

Yes, wealth stewardship across generations can be complex and difficult. But the families who thrive over the long term are those that can adapt, communicate and plan with empathy and intention, not in spite of their differences but because they recognize and respond to those differences. That is the surest path to creating not just enduring wealth, but also lasting harmony and opportunity across the generations.