Q&A: Preparing the next generation

A Q&A with Laurel Moulynox, Managing Director and Private Wealth Adviser, and Graeme Marks, Managing Director and Family Business Specialist, Morrows

The conversations that matter most to families often happen when everyone is together: around a table, at a birthday, after a family event. The questions usually focus on values, opportunity, and how to prepare the next generation for wealth, responsibility or handling the family’s affairs when the time comes. Turning those conversations into action is harder.

We asked Laurel and Graeme what they’ve seen work, and what can go wrong.

Why is preparing the next generation for wealth so important?

Laurel: For many families, wealth isn’t just about money. It’s about values, opportunities and the impact you want to have. Passing it on well means passing on knowledge, confidence and the ability to make informed decisions, not just assets. With an estimated $3.5 trillion expected to move across generations in Australia over the coming decades, preparation matters. US research suggests around 70% of family wealth is lost by the second generation and up to 90% by the third.

Graeme: That’s why we encourage families to start early. Regular family meetings, early education and including younger family members in small decisions all help build respect for the family’s values and plan.

What practical steps help families turn conversation into action?

Graeme: Structure and governance matter, not just the legal documents, though trusts, wills, and estate plans are important. It’s also how a family communicates and makes decisions together. Regular meetings, documented agreements and check-ins reduce conflict and keep everyone aligned.

Laurel: From an investment perspective, these structures help families protect and grow wealth. Trusts can safeguard assets, control distributions, and be designed to be tax-efficient. And early exposure to investing helps children manage wealth responsibly when it eventually passes to them.

How can families teach financial responsibility and capability?

Graeme: It starts with involvement. Small responsibilities, like budgeting part of an allowance, joining a family meeting or contributing to a decision in the family business, build confidence. Purpose matters as much as money. Children who see wealth as a tool for impact tend to make wiser choices over time.

Laurel: We also stress patience. Wealth is built over decades, not quarters. Teaching younger family members about diversification, risk and sustainable growth early means they’re ready when the time comes.

How do families avoid common pitfalls?

Graeme: Delaying the conversation, or relying only on legal structures. Without clear communication and early involvement, misunderstandings and entitlement can create tension and put the wealth at risk.

Laurel: Another is focusing only on assets. Wealth management without education, governance and purpose can leave the next generation unprepared. That’s why we bring investment strategy and family capability together, so the financial and human sides of wealth are both ready.

Start the conversation early.

Every family has to start somewhere, and the first conversation is often the hardest. We can help you get started and bring everyone onto the same page. Morrows brings together private wealth advisers, family business specialists and tax professionals to support both the personal and technical sides of wealth.

If you’d like help getting started, speak with your Morrows adviser. Our Family Business and Wealth advisers are happy to help you start those important conversations.

Read more: Trust is built before it’s tested by Graeme Marks, and Five foundations for wealth that bring a family together by Laurel Moulynox.