this post was submitted on 28 Jun 2026
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I could have sworn I've seen a study that said generational wealth dissolves like 99% of the time sometime during or after the third generation, that is it's exceptionally difficult to maintain wealth for generations upon generations.
If you ever get wealthy and your interest is in keeping the next generation wealthy, you set up a trust with stricts rules on keeping up with inflation, balancing accounts to even out the distribution and an absolute iron gate against drawing out the principal.
The long-long-long term generation wealth families don’t just hand the next generation an enormous pile of cash. They hand them the right to continually receive cash from a trust.
That’s why you create a family foundation that controls it so that no one person can ruin things. The family as a whole has to decide what to do when there’s any major decision.
The Wealthy in Florence Today Are the Same Families as 600 Years Ago
Wasn't there a family that would only have one heir to the money, incentivizing having only one or 2 children and both raised\groomed to not fuck up the money. Like if backup kid needed money, they'd get a loan from the trust but have to pay it back with interest. They have a family estate so if anyone fucks up they don't end up homeless. With so many advisers making sure the money is OK above all else.
I swear the Medici family still has an heir living off of that generational wealth
I'm not saying it's impossible, just that it typically requires unusual behavior like that or very unusual circumstances such as very large and valuable (typically land) holdings that cannot be sold. Either the wealth gets divided too much or there's infighting or someone is given the keys to the kingdom and ruins it.