Advisors to wealthy families respond to an article in this publication about issues generated by the recent death of a scion of the Mellon dynasty.

On May 8 this year a prominent commentator on US and international wealth management issues, Charles Lowenhaupt, wrote about the tragic case of Matthew Mellon, a member of the renowned Mellon banking dynasty. He explored what he sees as the specific problems that wealth inheritors with particular problems face. This topic is clearly controversial. James Grubman PhD and Dennis T. Jaffe PhD, consultants to families of wealth and global family enterprises, take issue with some of the points in Lowenhaupt’s article and respond here.

As always, the editors of this news service are pleased to share views with readers on such matters; Family Wealth Report is an important platform for debate and we urge those who wish to add their views on issues to contact the editors. The editors stress that they don’t necessarily endorse all views of contributors. To contact, email tom.burroughes@wealthbriefing.com

Several weeks ago, Family Wealth Report published an article by Charles Lowenhaupt which commented on the circumstances of a wealthy inheritor who died just before entering a drug rehab facility after a long battle with addiction and bipolar disorder, among other issues. Mr Lowenhaupt expressed the viewpoint that, looking past the compelling factors of drug addiction and bipolar disorder, Mr Mellon was “caught between tradition and synthetic modernity” and that Mellon’s “plight is not dissimilar from many wealth inheritors who fail to fully self-actualize and create their own legacy.” This is consistent with Mr Lowenhaupt’s frequent writings about the need to achieve “freedom from wealth,” far from the shadow of an overwhelming family legacy.

We feel that suggesting this tragic death is in some way connected to the burden of inheriting wealth is not helpful.  Making this association supports a view of wealth that reinforces a negative stereotype which is less commonly the case for today’s wealth inheritors.

A more productive approach would be to emphasize that the vast majority of affluent individuals live purposeful, dynamic lives that leverage the power of wealth to accomplish great things in the world.  Successful family enterprises provide economic and personal support to every culture around the globe, led by people who handle wealth responsibly, maturely, and ethically. Although there are many who do feel the pressures of wealth as a burden or a curse, this is no longer the accepted view of inheritors. It may in fact perpetuate some of the biases about the wealthy held by general society and even within the financial industry itself.

Bipolar disorder, chronic substance abuse, and other mental health disorders can be truly deadly disorders.  Significant wealth is not. We need to respect the privacy of those who struggle with personal challenges of any type and not make assumptions based on very limited knowledge of the facts.

There are a growing number of resources and peer networks that advance the vitality and positive adjustment of inheritors as well as wealth creators. Let us move beyond attitudes that characterize groups of people based only on their wealth status. So much more can be accomplished by celebrating individuals who know wealth as a blessing and an opportunity.