We asked a difficult question on X this week:

It’s the question every wealthy parent eventually asks, and it sits right at the heart of every family office.

Is my kid ready for the money?

Many families wait too long to find out. By the time wealth changes hands, it’s too late to fix the gaps.

So here’s a test: ten questions to help you decide if your heir is ready, or whether you’re handing them the keys to a kingdom they can’t run.

Oh, and also included: wisdom from X on what readiness actually looks like.

What happens if you stripped away the safety net?

Could they live, work, and budget without calling the family? Or would they crumble at the first utility bill?

As one reader put it: “I’d want to make sure they’re not going to just blow it. I’d require them to have a normal job at least once in their life — lifeguard, retail, whatever — to learn the value of money.”

Ask them to explain the assets: companies, funds, real estate.

Not just the names, but how they make money and what risks they face. What is the purpose of different assets? If they can’t explain it in plain language, they don’t understand it.

Some parents start early:

It doesn’t have to be a unicorn. It could be a side hustle, a foundation, a project that mattered. Inheriting money is easy.

Building something from scratch tests discipline, humility, and resilience.

Building something inevitably means dealing with people, dealing with problems, and dealing with conflict. It can be an invaluable apprenticeship before handling family money.

You learn a lot from how someone describes others’ wealth.

Do they envy, mock, or respect it? If your child can’t respect money they didn’t earn, they won’t respect money they inherit.

Morgan Housel puts this nicely in his book The Art of Spending Money: Money that comes quickly tends to be spent quickly.

And inheritance can come very quickly. If it is not respected, it is unlikely to last.

Balance sheet, income statement, cash flow. Three documents that separate heirs from dependents. Your kids don’t need to be accountants, but they should understand where the money goes and how it moves.

It’s incredible how many wealthy inheritors regard accounting as something for the bean-counters. Without an appreciation of basic financial reporting, they are flying blind.

“They need a budget, a Roth IRA, and to be paying down debt,” said one parent. “They should be open to personal finance education.”

Money gives freedom. But freedom without purpose is poison. The heirs who thrive are the ones with some kind of mission: business, art, science, philanthropy, whatever.

A blank stare when asked this question means trouble.

Money amplifies behavior.

If they can’t handle themselves without it, they definitely won’t with it.

Some adulting basics: no substance abuse, no criminal trouble, no suing or badmouthing family members, no public meltdowns, no messy arguments about politics or religion.

Emotional control, discretion, and respect should be prerequisites to inheritance.

A similar question is: Do they treat staff and service people with respect? This one never lies.

The way they treat those who can’t offer them anything says everything about their character. Families that overlook this tend to watch their fortunes and reputations erode fast.

Theory only goes so far.

The real lessons come when their own money is on the line, when a win feels earned and a loss stings. Some parents match their kids’ investments or make them lead due diligence on a deal, but the kids need some skin in the game.

As one parent put it, it’s about decision-making, integrity, and protecting the family’s legacy.

Do they know what leverage does? What diversification means? Do they understand that investments can go to zero?

What can actually wipe them out?

An heir who chases excitement without comprehension can destroy in years what took generations to build.

One parent says he includes his kids in real due diligence: “I let them do the research on something I’m willing to invest in. But it has to cost them something.”

Forget the bloodline. If they were anyone else, would you trust them to manage your capital?

If the answer is no, or not yet, inheritance should be delayed or structured to protect the family from them.

A 2025 UBS study found that 68% of ultra-wealthy parents worry their heirs aren’t prepared for the responsibilities that come with wealth. But only 34% have any structured education plan in place.

The truth is, inheritance isn’t a windfall. It’s a handover of stewardship.
If you haven’t tested your heirs, the market will. And the market is merciless.

Finally, of course, there’s always another way:

Gelt partners with family offices to turn complex tax landscapes into strategic opportunities. Our CPAs and tax experts deliver proactive, year-round planning to protect multigenerational wealth and align with long-term investment goals. From real estate structures to optimizing investment vehicles, we provide clarity, compliance, and confidence.

Backed by a recent $13M raise, we’re fueling innovation to expand tax strategy and technology for families who expect more. With Gelt, taxes aren’t just a cost, they’re a lever for accelerating growth and securing your legacy.

Discover how we help you keep more of what matters most - schedule a complimentary consultation.