American Millionaires Show Tough Love to Heirs: Here's Help, But Make Your Own
Leaving a legacy includes money, but it's about much more than that, PNC
survey finds -
PHILADELPHIA, Jan. 10, 2013
PHILADELPHIA, Jan. 10, 2013 /PRNewswire/ -- More than four in five (82
percent) of American millionaires agree that each generation should be
responsible for creating its own wealth, up significantly from the 65 percent
who said the same thing in 2007, according to a new survey from PNC Wealth
In another post-recession scenario, one third (31 percent) of millionaires
anticipate a decline in the wealth they expect to pass on to the next
generation, according to the ninth annual Wealth and Values Survey. This
number has more than doubled since this topic was addressed in a previous
Wealth and Values survey in 2007. However, 49 percent report that they expect
to pass on at least $500,000 of wealth to their heirs. More than eight in 10
(84 percent) say raising successful, hard-working children is their most
important goal, an increase from 75 percent from five years ago.
"It is human to want your children to have a better life than you have had,
but too much financial support might, at some point, have negative longer term
consequences," said Steve Pappaterra, senior vice president and managing
director of wealth planning for PNC Wealth Management. "It is important to
communicate early and often with children and grandchildren about their goals
and expectations, both in terms of financial and life achievements.
Ultimately, parents want their children to make their own way in life."
In addition, the survey examined the notion of leaving a legacy, which goes
beyond the simple step of transferring financial assets to the next
generation. Nearly half (46 percent) of American millionaires said it means
being remembered and passing on important family traditions. About two in 10
(19 percent) mention property as the biggest part of their legacy while 15
percent say the idea of leaving a legacy is an outdated notion.
The Wealth and Values Survey by PNC, which is among the nation's top 10
bank-owned wealth management firms, also revealed insights about the following
oWhat, me wealthy? Three quarters (75 percent) said their financial
situation growing up was "average," while 12 percent said they grew up
poor and an equal number said they grew up well off or wealthy.
oLeaving a financial legacy: Millionaires expect financial aspects to be a
significant component of their personal legacies. Nearly nine in 10 (86
percent) intend to leave something tangible for the next generation. They
intend to do this in a variety of ways: passing on property, family
heirlooms, or ownership/participation in a business. More than four in 10
(46 percent) millionaires expect to pass on assets through a trust fund.
oHelp is there: Millionaires acknowledge they received some help (67
percent) from their own parents and they are doing more for their own
children (91 percent). Not surprisingly, in light of the rising cost of
education more than eight in 10 (84 percent) say they have or expect to
provide financial support for higher education. Millionaire parents also
strongly support basic purchases such as a car (61 percent) and down
payments on homes (45 percent), as well as other general expenses.
oTransfer of wealth: A vast majority of wealthy households have taken some
steps to plan for their ultimate transfer of wealth. Most have wills (82
percent) and some have established trusts (52 percent) and/or estate
managers (52 percent). But nearly one in five (18 percent) do not have a
will and seven in 10 (70 percent) do not have a formal financial plan.
Among wealthy business owners, surprisingly few, only 15 percent, have a
formal succession plan in place. Among those who already have set up a
will, estate or trust plans, few have gone so far as to put in place any
stipulations on how heirs access that inheritance (20 percent of
An online media kit containing survey highlights and background information
are available on PNC's website at http://www.pnc.com/pncpresskits.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's
largest diversified financial services organizations providing retail and
business banking; residential mortgage banking; specialized services for
corporations and government entities, including corporate banking, real estate
finance and asset-based lending; wealth management and asset management.
Follow @PNCNews on Twitter for breaking news, updates and announcements from
The Wealth and Values Survey was commissioned by PNC to identify attitudes
about wealth among high-net-worth individuals, how it affects their lives and
their needs in managing wealth. Artemis Strategy Group conducted the online
survey in August and September 2012, 1,115 interviews were completed
nationally including 560 millionaires with assets of $1 million or more.
Sampling error for 560 respondents is +/- 4.1 percent at the 95 percent
confidence level. DISCLAIMER: This report was prepared for general information
purposes only and is not intended as specific advice or recommendations. Any
reliance upon this information is solely and exclusively at your own risk.
The survey was designed and managed by HNW, Inc. (www.hnw.com), an integrated
marketing and technology firm with a focus on financial services and
understanding and connecting with the affluent. The survey was supported by
Artemis Strategy Group (www.ArtemisSG.com), a communications strategy research
firm specializing in brand positioning and policy issues.
This report has been prepared for general informational purposes only and is
not intended as specific advice or recommendations. Information has been
gathered from third party sources and has not been independently verified or
accepted by The PNC Financial Services Group, Inc. PNC makes no
representations or warranties as to the accuracy or completeness of the
information, assumptions, analyses or conclusions presented in the report. PNC
cannot be held responsible for any errors or misrepresentations contained in
the report or in the information gathered from third party sources. Any
reliance upon the information provided in the report is solely and exclusively
at your own risk.
SOURCE PNC Wealth Management
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