Over the next two decades, we’re going to witness something unprecedented: The Great Wealth Transfer.
An estimated $84 TRILLION is expected to move from Baby Boomers to their Gen X, Millennial, and Gen Z children and grandchildren over the next 20 years — making it the greatest wealth transfer in history.
For some families, this transfer will be smooth, tax-efficient, and aligned with their values. For others… this may result in confusion, missed opportunities, or unintended consequences — especially if planning has been overlooked or delayed.
If you’re part of the generation preparing to pass down wealth, now is the time to clarify your legacy goals and ensure your financial plan supports them. If you’re expecting to receive or inherit wealth in the coming years, financial education and proactive coordination are key to managing it wisely.
At Towerpoint Wealth, we help clients on both sides of this transfer navigate the financial, emotional, and logistical challenges involved — from structuring and coordinating thoughtful estate plans to avoiding unnecessary taxes and helping families stay aligned across generations.
In this article, we’ll talk about why the great wealth transfer is such a big deal, the most common mistakes families make, and how fiduciary estate and financial planning can help ensure your family’s wealth doesn’t just survive the transition, but grows stronger because of it.
Why is This Transfer So Monumental?
We’re not just talking about a typical shift in wealth from one generation to the next — we’re talking about the greatest wealth transfer in history.
Over the next 20 years, roughly $84 trillion is expected to change hands, primarily from Baby Boomers to their Gen X, Millennial, and Gen Z heirs. And this isn’t just some future event… It’s already happening.
Where is all that wealth coming from?
- Real estate: Homes, vacation properties, and investment properties make up a significant portion of generational wealth.
- Retirement accounts: 401(k)s, IRAs, and pensions that have grown over decades are now being passed on.
- Investment portfolios: Many Boomers have built substantial brokerage and taxable investment accounts that are expected to be inherited by heirs.
- Privately held businesses: A large number of family businesses are in ownership transitions as owners age.
- Life insurance & trusts: Policies and trust assets that are structured to benefit heirs are now activating.
But while this transfer may be MASSIVE in scale, not every family is equally prepared for it.
Some inheritances will arrive with thoughtful planning, coordinated strategies, and clear communication. Others, on the other hand, will be delayed by probate, diminished by taxes, or even lead to disputes between family members due to a lack of clarity and communication.
At Towerpoint Wealth, we often say that the size of your estate isn’t what determines success — it’s the strength of your plan. With the greatest wealth transfer in history already underway, the families who take the time to prepare will be in the best position to preserve and build on what’s being passed down.
Common Mistakes Families Make When Passing Down Wealth
The transfer of intergenerational wealth can be one of the most meaningful — or most stressful — financial events a family experiences. Too often, even well-intentioned families make avoidable mistakes that lead to delays, unnecessary taxes, confusion, or even conflict.
Outdated or Missing Estate Plans
One of the most common issues we see is a lack of current, comprehensive estate planning documents. Families often rely on a will that hasn’t been reviewed in decades — or worse, they assume verbal instructions are enough. Without current legal documents in place, assets can be delayed in probate, decisions may be contested, and your wishes might not be followed the way you intended.
Lack of Communication with Heirs
Just as important is communication.
Even when the legal pieces are in place, communication breakdowns can cause just as much harm. If your heirs aren’t informed about your plan — or don’t understand your intentions — they’re left to guess. This often leads to conflict, confusion, and poor financial decisions. Having open conversations about your legacy goals helps reduce uncertainty and builds trust within the family.
Misaligned Account Titling and Beneficiaries
Another area that causes major disruption? Improper account titling and outdated beneficiary designations. Even with a detailed estate plan, these technical details can override your wishes if they’re not aligned. A retirement account with an ex-spouse still listed as a beneficiary, for example, will go to that individual — regardless of what the will says.
Overlooking Tax Strategies
Taxes play a critical role in wealth transfer. Missing opportunities for a step-up in basis, ignoring capital gains implications, or failing to plan for estate taxes can significantly reduce the amount passed on. Coordinating with a fiduciary financial advisor and a CPA helps to ensure your plan is as tax-efficient as it is well-intentioned.
Focusing on Assets, Not Legacy
At its core, wealth transfer isn’t just about dividing up money. It’s about preserving what you’ve built, reinforcing your values, and empowering the next generation. When families treat it as a transaction instead of a long-term legacy, inheritances are more likely to be misused or misunderstood.
At Towerpoint Wealth, we help clients plan not only for what they want to pass on, but why and how. A well-orchestrated financial plan helps to reduce risk, prevent costly mistakes, and pass down their assets in a way that aligns with their legacy.
Preparing to Pass Down Wealth (For Givers)
If you’re part of the generation preparing to pass down your wealth, the decisions you make today can have ripple effects for decades to come.
Thoughtful planning is about much more than minimizing taxes or avoiding probate. When done right, your planning should ensure your wealth supports the people and causes you care about, in the way you intended.
Here’s where to start:
1. Clarify Your Legacy Goals
Before diving into the logistics, take a step back and define what success really means to you.
Do you want to ensure a smooth, tax-efficient transfer to your heirs? Support charitable causes that matter to you? Help fund your grandchildren’s education? Protect assets from misuse or mismanagement?
There’s no right answer here, but being clear about your priorities will shape every other decision you make. Your financial advisor can help you turn those priorities into a plan.
2. Create or Update Your Estate Plan
If you don’t yet have a full estate plan, or if it’s been years since you’ve reviewed it, now’s the time.
A will alone often isn’t enough. Work with your estate planning attorney and fiduciary financial advisor to ensure your plan includes updated documents, coordinated account titling, and (if applicable) properly funded trusts. An unfunded trust is one of the most common — and costly — estate planning mistakes we see.
3. Plan for Taxes
From estate and gift taxes to capital gains and the step-up in cost basis, tax planning and coordination plays a major role in wealth transfer.
Many families unintentionally trigger tax bills that could have been avoided with proactive planning. A fiduciary financial advisor helps identify those risks and collaborates with your CPA to implement strategies that preserve more of your wealth for your beneficiaries and your legacy.
4. Talk to Your Family
Transparency and communication are two of the most underused — and powerful — tools in coordinated wealth transfer planning.
You don’t have to share every detail, but having open conversations about your goals and intentions can help reduce confusion and avoid conflict later. At Towerpoint Wealth, we often help facilitate these conversations, giving families a safe, objective, and guided environment to talk about money, expectations, and the future.
5. Leverage Gifting and Philanthropy Strategies
Gifting during your lifetime can be a powerful way to support loved ones or causes while reducing the size of your taxable estate. Annual gift tax exclusions, 529 college savings plans, charitable remainder trusts, and donor-advised funds are just a few of the tools available.
But the real value isn’t just in the tax benefits — it’s in the opportunity to see your impact while you’re here, and to lead by example.
Passing down wealth is a personal event just as much as it is a financial one. And with the right guidance, it can be one of the most meaningful parts of your financial journey.
Preparing to Receive Wealth (For Heirs)
Receiving an inheritance can feel overwhelming, especially if it comes during a time of grief or transition. That’s why preparing ahead of time matters.
Whether you’re expecting a significant inheritance or simply want to be ready when the time comes, here are three smart ways to approach the opportunity with clarity and responsibility.
1. Know What’s Coming (and When)
It’s not always easy to talk about money within families, but having open, honest conversations can go a long way in reducing confusion later.
Understanding what you might inherit, and when, isn’t about entitlement, but about being prepared. Will you be inheriting a house? A business? Retirement accounts? Knowing the general structure helps you plan accordingly — and ensures that your loved one’s intentions are honored.
Feels uncomfortable to bring this up? Work with a trusted fiduciary advisor. We often help clients and their heirs navigate these conversations in a thoughtful, intentional way.
2. Build Financial Literacy Now
An inheritance can create opportunity, or it can disappear quickly without a plan.
One of the best things you can do is start building your financial foundation early. Learn the basics of investing, taxes, insurance, and retirement planning. At Towerpoint Wealth, we offer resources like articles, videos, and guides that can help you build a foundational understanding of finances.
Work with a fiduciary financial advisor who can help you map out a strategy that aligns with your life goals — not just your net worth.
Preserving wealth across generations requires more than good intentions. It takes education, planning, and, notably, accountability.
3. Coordinate with Your Parents’ Advisor (If Possible)
If your parents or grandparents are working with a trusted financial advisor, see if there’s an opportunity to collaborate.
At Towerpoint Wealth, we see a lot of multigenerational planning — helping families coordinate across generations, reduce tax exposure, and ensure the bigger picture is accounted for.
When everyone is on the same page, the result is a smoother transition, fewer surprises, and a plan that reflects your family’s shared values.
Fiduciary Financial Planning for Intergenerational Wealth
When it comes to managing intergenerational wealth, there’s a big difference between just having accounts and investments, and having a coordinated plan.
At Towerpoint Wealth, we believe successful wealth transfers require a strategic, coordinated approach that evolves as your family, finances, and goals change over time. This is why we always recommend working with a fiduciary financial advisor when making such life-altering decisions.
As fiduciary financial advisors, we don’t sell products or chase trends. We provide clarity around your full financial picture, help you define what legacy means to you, and create a customized plan to preserve, grow, and eventually transfer, your wealth in a tax-efficient and intentional way.
That means:
- Helping you build a longer-term strategy that aligns with your values and goals.
- Coordinating across generations to ensure everyone is on the same page.
- Reviewing account titling, beneficiary designations, and trust funding to avoid costly missteps.
- Planning for the impact of taxes — not just today, but over decades.
- Supporting family conversations to reduce confusion and build shared understanding.
Our team at Towerpoint regularly helps families navigate the complex process of preparing for — and executing — a thoughtful transfer of intergenerational wealth. With the right planning in place, you can make sure the wealth you’ve worked hard to build has a lasting impact for generations to come.
Final Thoughts
The great wealth transfer isn’t coming… It’s already happening. And with an estimated $84 trillion expected to change hands, the stakes have never been higher.
Handled thoughtfully, this transfer is an opportunity for you to strengthen your family’s financial foundation and carry your values forward. But without a plan, even well-meaning families can face unnecessary taxes, conflict, and regret.
At Towerpoint Wealth, we believe that fiduciary financial planning is the key to building a legacy that lasts. We’re here to help you simplify the process, avoid the common pitfalls, and bring your long-term vision to life — with your loved ones, your finances, and your legacy all in alignment.
If you’re ready to take the first step toward a well-orchestrated transfer of wealth, we invite you to schedule a 20-minute “Ask Anything” call. In this call, we’ll sit down with you to discuss what’s most important to you and how you can structure your plan to leave behind the legacy you’ve envisioned.
