If your neighbor is interested in maintaining generational wealth, she may want to consider establishing a Trust so that it specifies the conditions that family members may access the money. However, simply dividing it up among the kids may in fact be a quick way to rapidly deplete the entire amount.
The following article is an interesting read to get a better idea of how wealthy families maintain their wealth over many generations.
How Wealthy Families Use Trusts to Protect Their Wealth - Ken Majmudar