Nearly 200,000 UHNW families live in the United States, an increase of 20.5% from 2023. Globally, the ultra-high net worth population increased by 12.4%, bringing the total to more than 484,000 people. As 2026 approaches, these families will face the the largest intergenerational wealth transfer in historywith $84-120 trillion expected to be transferred between generations over the next two decades.
Yet most families are unprepared. Michael Goldfounder and CEO of Gold Family Wealth in Westport, Connecticut, says the most common mistake he sees comes down to one word: preparation.
“Lack of preparation and fragmented advice,” he says. “Most people, when referred to us, say they just signed a letter of intent. Can you help us now?”
The problem is that arriving late in the planning process can leave families vulnerable to gaps that can cost millions or completely destroy the inheritance.
The $8 Billion Mistake
Michael Gold uses a case study that drives the point home. Joe Robbie, owner of the Miami Dolphins in the 1980s, died in 1990 without proper planning. The estate tax bill came due, but his assets were illiquid, tied up in real estate and the team itself. After four years of fighting, his family sold the Dolphins for approximately $109 million. $47 million went to the IRS. The rest was shared among the heirs.
The Miami Dolphins are worth approximately $7.5 billion Today.
“That’s why we don’t hear about the Robbie dynasty the way we hear about the Rockefeller dynasty,” says Michael Gold. “Not being prepared can not only cost an inheritance, but also forget the impact each generation of your family will have forever. If there were philanthropic causes that someone in the family cared about, what impact could that money have had beyond just the family? All because someone didn’t take the time to plan ahead.”
Where preparation fails
THE Westport Councilor states that preparedness failures occur on three levels: business, financial and personal.
On the business side, families fail to resolve structural problems years before their exit. Some have to redefine their business structure, which means waiting 12 months to sell, because the tax burden would be too great. Others face customer concentration problems. “If I buy someone and the customers only like the owner, what am I buying? » he said.
There is often no leadership succession, no deep sales force, and no buy-sell agreements between partners. These discrepancies can reduce company value or derail exits altogether.
The financial layer is just as problematic. Families have assets spread across multiple jurisdictions and entities, but lack a coordinated view of how it all fits together. Michael Gold compares his approach to that of a neurosurgeon and not that of a salesman. “I’ve had three spinal surgeries. At no time has the surgeon been like that, so what do you think of this or that?” he said. “They ran a series of tests, presented every option from the most conservative to the most aggressive, and almost tried to postpone surgery in every case.”
Wealth advisors should operate the same way. “We really need to understand the client’s business, their family, what’s going on their net worth statement, their risk management, their kids, their work life, everything. Then we can see what gaps and/or missed opportunities exist and present them in order of priority,” he says.
Look under the hood
It is on the personal level that planning often becomes emotional. Blended families, outdated estate documents, and beneficiary designations that no longer reflect current relationships can create unnecessary conflict. Even successful advisors can overlook some details of their own planning when life circumstances change.
The solution is global. “You have to look under the hood. You have to look at all aspects to see: are there gaps? And if so, how serious are they, what are the solutions to fix them and what do you need to fix first, second, third,” says Michael Gold.
Preparation is not analysis paralysis. Gold refers to Sun Tzu The art of war: “Battles are won in temples. » This means doing your homework, then taking action. “Too many people will research and do everything, but they won’t move. You have to do your homework, but you have to move. And if you’re wrong, you’ll quickly know you’re wrong and you’ll be able to pivot.”
For very wealthy families When exiting, transitioning or transferring wealth, the cost of unpreparedness is measured not just in dollars, but also in lost inheritance, fractured relationships and opportunities that will never return.
Contact details:
Family wealth in gold
257 Riverside Avenue, 1st floor
Westport, CT 06880
646-844-2533
Investment advisory services offered through CWM, LLC, an SEC registered investment advisor.
