This is probably a large part of the reason that 70% of generational wealth is gone in two generations, and 90% in three, on average.

Are you saying they mismanage the wealth by selling the assets, therefore not paying capital gains, but also using the cash to fund their lifestyle?

I assumed a fiscal manager would advise them to live off debt in the same way their parent had.

The only way this strategy works at all is if the market value of the assets being used as collateral continuously increases, and not just increases, but increases at a greater rate than inflation and the interest rate on the debt, combined.

Line goes up.