Insights into giving and inheriting wealth across generations.
The largest generational shift of wealth in history—known as the Great Wealth Transfer—is underway, and it will impact more American families than ever before.
Baby boomers in the U.S. have amassed far more wealth than previous generations and their international peers. They are more likely to own homes, invest in the stock market and have dual-income households, says Angie O’Leary, head of Wealth Strategies and Solutions at RBC Wealth Management–U.S. “They’re 401(k) people with wealth that can be passed along,” she says. “Past generations had pensions, which children could not inherit.”
Roughly $124 trillion is expected to change hands between now and 2048, according to Cerulli’s U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024 report. And since modern families are typically smaller than those in past generations, today’s inheritances are often spread across fewer people, meaning each heir receives a larger share. People are also living longer, and as a result, their loved ones might not receive anything until much later in life—for example, in their 50s or 60s.
Given these new dynamics, intergenerational wealth transfers have the potential to be more impactful, more complex and, in some ways, more stressful for families than ever before. In late 2024, RBC Wealth Management conducted a national survey of high-net-worth “Givers” (baby boomers) and “Receivers” (Gen X and millennials) of upcoming inheritances. The goal was to understand each generation’s expectations, concerns and plans regarding wealth transfer, as well as what resources they’re looking for to facilitate clarity and family harmony.
Here are five key findings to help families prepare for a smooth transition of wealth.
When it comes to the legacy they want to leave, 75 percent of surveyed Givers said their top priority is providing their family with financial security. However, most Givers have non-financial legacy goals, as well. Two-thirds want to pass on their values and principles along with their financial assets—a more recent phenomenon, compared to past generations.
“Discussing values didn’t matter as much when smaller amounts were being passed down, but wealth transfers are so much bigger now,” O’Leary says. Today, more inheritances are life-changing sums that could create multi-generational wealth if managed wisely.
With so much at stake, it’s crucial for Givers to educate and mentor their heirs to be good stewards of the family’s wealth. This includes discussing values and the family story of how the wealth was built. Together, Givers and Receivers can create a family mission statement that outlines the shared values they want to be passed down. That way, Receivers can follow the same principles when they inherit.
The survey revealed that Givers lack confidence, both in themselves and in their intended beneficiaries. Only half of surveyed Givers feel very prepared to leave an inheritance, and just a quarter feel their heirs are very prepared to receive one, citing worries about the next generation’s knowledge and ability to manage the wealth responsibly.
At the same time, Givers aren’t offering enough support to their beneficiaries, with two-thirds admitting to procrastinating family wealth-transfer conversations. As such, only 39 percent have provided guidance or instructions to their heirs on what they should do with their inheritance.
Open communication makes a significant difference when it comes to wealth-transfer planning. When Givers have conversations about their values with loved ones, they are much more likely (71 percent versus 51 percent) to feel very prepared to pass down their wealth.
Another way individuals can prepare is by making smaller transfers while they’re alive, such as by helping loved ones with a down payment on a home or contributing to a 529 plan for college expenses, O’Leary says. “Seeing your heirs use these smaller gifts responsibly can help you feel more confident about the upcoming inheritance. And you’re still there to give advice.” Living transfers also allow Givers to see the tangible benefits of the wealth they worked so hard to build.
Contrary to Givers’ fears, the survey found that nearly all Receivers (99 percent) want to honor the wishes of their benefactors. They want to be good stewards of their family’s wealth, and their top concern is being financially responsible with what they inherit.
Yet, only 54 percent of Receivers said they are very prepared to receive an inheritance. They are worried about tax implications and maintaining inherited assets like homes and vehicles. They have emotional concerns too, such as the pressure of carrying on the Giver’s legacy and avoiding family conflict.
Givers can help ease these challenges by educating and preparing their heirs as early as possible. “Talking to kids about money from a young age helps equip them with the tools necessary for strong financial management,” O’Leary says.
Additionally, Givers should have ongoing conversations with the next generation about the values underpinning their family legacy. They can also introduce heirs to their financial advisor for professional guidance and education on how to manage an inheritance.
When it comes to preparing for wealth transfer, clear communication matters as much as the technical details.
“Don’t underestimate the power of an intimate family discussion,” O’Leary says. “These conversations help make sure inherited dollars become a meaningful part of the family’s next chapter, one that honors the legacy of where it comes from.”
Parts of these conversations should involve laying out wishes and expectations. If the Giver discusses them while they’re alive, heirs can better process those plans, even those they may feel aren’t fair. “If the kids don’t learn your plans until you’ve passed and everyone is grieving, they could end up hating each other–especially if the outcome is an unpleasant surprise,” O’Leary warns.
In the survey, more than half of Givers said maintaining family harmony is a top priority, and while it may feel awkward initiating these discussions, O’Leary emphasizes the need for having them early on, rather than leaving things unclear. “You can prevent a legacy of confusion, chaos and conflict,” she says.
Financial advisors are the primary resource high-net-worth individuals of all generations would consult to learn more about inheritances, ranking far ahead of accountants, lawyers and online resources, according to the survey.
But advisors can do more than design the technical details of a generational wealth transfer—they can also help clients prepare for conversations about family values, history and legacy. Both Givers and Receivers say they would like professional help facilitating these discussions.
“A financial advisor is the perfect person to help families have these conversations, but it’s something many clients don’t realize,” O’Leary says.
For those who are uncomfortable leading family meetings, an advisor can be brought in as a neutral third party to guide the discussions. They will also be in a position to help the next generation with finances, including managing their inheritance.
For both Givers and Receivers, proactivity and communication are key to a successful generational wealth transfer. The earlier families start planning and having these shared discussions, the more seamless the transition can be.
Givers can start by simply letting their heirs know they can expect an inheritance one day. From there, families can start having conversations about values, and after everyone is more comfortable with the idea, they can get into the specifics.
“A successful wealth transfer is about making sure beneficiaries understand what they may receive and how their inheritance can be used to carry on family values,” O’Leary says. “It’s an opportunity to create a legacy that continues many generations into the future.”
Learn more about RBC Wealth Management’s wealth transfer research.
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