Wealthy heirs squander fortunes

More than two-thirds of wealthy families lose their wealth by the second generation, according to The Williams Group, a U.S.-based wealth consultancy firm. And not surprisingly, that figure jumps to 90% by the third generation.

Stephen Lovell, whose grandfather founded John Forsyth Shirt Co. and had a net worth of US$70 million, knows this first-hand, reports The Globe and Mail. The heirs to his grandfather’s fortune lost most of their inheritances due to bad decisions or luck, or alcohol dependency.

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