Bridging Generational Divides

Case Study 3: Daughter’s Ambition

Laura and her brother want their investments to make a positive impact. However, their father’s conservative approach has long controlled the management of the family’s $60 million portfolio. Although his track record is strong, his unwillingness to share financial details or involve his children in decisions has caused tension. The next generation is eager to move toward a values-driven approach, incorporating environmental sustainability and social justice into the portfolio. However, without clear reporting systems or a plan to address looming tax concerns relating to unrealized capital gains, these changes remain out of reach. Bridging generational divides is crucial for the family to align their investments with modern values while maintaining financial success.

Asset	Value ($)	Type of Asset
Investment Account	60,000,000	Financial Securities
House	5,000,000	Real Estate
Cottage	1,000,000	Real Estate
Cash	1,000,000	Liquid Assets

The lack of transparency in managing the family’s finances has caused resentment between generations. Laura and her brother feel disconnected from the decision-making process, while their father’s conservative, hands-off strategy has led to a static portfolio that does not reflect modern values. In addition, looming capital gains taxes pose a significant risk, and without a strategy to address this, the family will face a large tax bill in the future at a time not of their choosing.

How We Can Help

Markdale Financial Management can assist this family by implementing detailed reporting systems that offer greater transparency and foster collaboration between generations. Our consolidated reporting service provides regular updates on portfolio performance, ensuring that all family members are informed and involved in decision-making. This will also allow the family to assess whether their investments align with their social justice and environmental goals​.

To alleviate the potential tax burden, we offer philanthropy and tax planning services. By helping the family donate appreciated securities to charities, we can help reduce their capital gains taxes. This approach also aligns their wealth strategy with their philanthropic goals. Additionally, our generational transfer services ensure that both Laura and her brother are prepared to take on the responsibility of managing their wealth in a way that reflects their values, while still respecting the strategies that have brought the family financial success thus far. Through transparent communication and structured planning, we can help bridge the generational divide and guide the family toward a more sustainable and values-driven future.