Families preparing for the next generation to take on larger roles often focus on succession, but wealth advisor Flora Dong says an earlier stage deserves more attention: readiness. Dong, Founder and Managing Partner of Ardenwood Advisors, LLC, doing business as Arden Global Family Offices, has spent more than 25 years in wealth management. Her experience includes families with multigenerational and international circumstances, where questions about involvement grow more complex as children become adults, build careers, move abroad, or develop their own priorities.
“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. Maturity, interest, family circumstances, and the nature of the information being discussed may influence timing. She distinguishes between understanding the family’s broader financial structure and taking responsibility for decisions. “Those steps do not necessarily have to happen at the same time,” she said. Early conversations might cover the history of a family business, the purpose of a family foundation, or the responsibilities of shared assets. More detailed financial information may become relevant later.
Dong suggests thinking of involvement as something that develops over time rather than an all-or-nothing decision. “You can have someone participate in a conversation without expecting that person to immediately take on a decision-making role,” she said. “Listening, asking questions, and understanding why certain structures exist can be part of the process.”
Siblings may approach family financial matters very differently. One may be deeply interested in a family business or investments; another may have built an unrelated career and have little interest in participating regularly; a third may want to understand the family’s affairs without 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. “People have different interests, skills, careers, and comfort levels. The difficult question is often how a family recognizes those differences while still being clear about responsibilities.”
For internationally connected families, geographic distance, different professional experiences, and exposure to different cultures can shape views on ownership, responsibility, philanthropy, or the future of a family enterprise. Dong notes that certain decisions may involve legal or tax considerations across jurisdictions, which should be addressed with appropriate professionals.
Dong also distinguishes between transparency and responsibility. Providing information does not necessarily mean that person should immediately participate in every decision. Conversely, assigning responsibility without sufficient context may create challenges. “I think families can ask two separate questions,” she said. “What does this person need to understand, and what is this person currently prepared to be responsible for? The answers may not be identical.” This distinction matters most when a family has a business, shared entities, philanthropic activities, or financial interests spanning generations.
Readiness can change. Someone uninterested at 25 may become more engaged later; another who expected to join the family enterprise may choose a different career. “People change, and families change,” Dong said. “A conversation that does not go very far today may look completely different five years from now. I think it is important to leave room for that.” The same is true for the older generation, whose expectations may shift as discussions unfold.
Dong believes the goal is not to force an answer. Families may need time to determine what involvement means for them and may need input from various advisors. “The purpose of these conversations is not necessarily to get everyone to the same conclusion,” she said. “Sometimes the first useful step is simply understanding where each person stands.” She prefers to think in terms of readiness rather than succession: “Succession asks what happens next. Readiness asks whether the people involved understand the responsibilities, whether expectations have been discussed, and whether assumptions made by one generation are shared by the next.”
“The next generation is not a single group with one personality or one set of goals,” Dong said. “They are individuals. Giving them room to ask questions and develop their own understanding can be an important part of the conversation.”
