From Will Bonner – Strategic Review (United States) –
The multigenerational families who succeed over long periods of time typically do so because the core of the family wealth is relatively illiquid. They have a family business, real estate, or investments that keep the family money tied up. Each generation works in the business, manages the assets, and then passes those assets on to the next generation intact.
When the business or assets are sold, and become liquid, it’s a dangerous time for family wealth. If the proceeds of those sales don’t make it into other collective investments, they are then divvied up among individual family members, often causing the family branches to separate.