Mark Moss argues that inheriting money alone fails most families. What matters is passing down the system and mindset to manage it: hold assets, live off what they produce, never sell. Without that education, wealth vanishes within two generations.
There's a lot of people talking online about inheritance planning and should I leave money to my kids, should I not? But the way I think about it is the inheritance is not the assets that I leave for them. It's the system that I leave for them. More importantly, it's the mindset and the education to be able to run the system. So, for example, do they understand that they should hold assets forever and live off of the liquidity from the assets instead of selling them? That's point number one. You see, most kids, when they inherit the assets, instantly want to sell them to go pay for all the things they hope to achieve. They don't understand that the system is leveraging the assets to pay for their life. So when it comes to passing the inheritance, make sure you're passing down the system and the education. Otherwise, those assets will typically be lost in less than two generations.
