Families preparing for the next generation to take on greater responsibility often focus on succession, but wealth advisor Flora Dong says an earlier stage deserves attention: readiness. Dong, Founder and Managing Partner of Ardenwood Advisors, has spent more than 25 years in wealth management, working with multigenerational and international families. She argues that before transferring ownership or responsibility, families must consider whether the next generation is prepared to participate, what that participation should look like, and how much responsibility makes sense at a given time.
"Succession can sound like a single event, but families may have many conversations before reaching that point," Dong said. "There can be questions about what younger family members know, what they want to know, and what responsibilities they are prepared to take on. Those answers may also be different for each person."
One common question is when younger family members should begin learning about financial matters. Dong does not believe a single age applies to every family. She points to maturity, interest, family circumstances, and the nature of the information as factors that influence timing. "There is a difference between helping someone understand the family's broader financial structure and giving that person responsibility for making decisions," she said. "Those steps do not necessarily have to happen at the same time."
Dong suggests that involvement can develop gradually. Early conversations might cover the history of a family business, the purpose of a family foundation, or the responsibilities tied to shared assets. More detailed financial information may become relevant later. "You can have someone participate in a conversation without expecting that person to immediately take on a decision-making role," she said.
Siblings often approach family financial matters differently. One may be deeply interested in a family business or investments, another may have built an unrelated career, and a third may want to understand without taking an active role. Dong cautions against interpreting those differences too quickly. "Different levels of involvement do not necessarily tell you how much someone cares about the family," she said. "The difficult question is often how a family recognizes those differences while still being clear about responsibilities."
For internationally connected families, geographic distance, varied professional experiences, and exposure to different cultures can shape views on ownership, responsibility, and philanthropy. Dong notes that legal or tax considerations across jurisdictions should be addressed with appropriate professionals.
She also distinguishes between transparency and responsibility. Providing information does not mean a person should immediately participate in every decision, and assigning responsibility without sufficient context may create challenges. "What does this person need to understand, and what is this person currently prepared to be responsible for? The answers may not be identical," Dong said.
Readiness can change over time. Someone uninterested at 25 may become more engaged later, while another who expected to join a family enterprise may choose a different path. "People change, and families change," Dong said. "A conversation that does not go very far today may look completely different five years from now."
The goal is not to force an answer. Dong believes the first useful step is often understanding where each person stands. "The next generation is not a single group with one personality or one set of goals," she said. "They are individuals." Her perspective matters for families navigating wealth transfers, as it shifts the focus from a single succession event to ongoing dialogue and preparation.
