The Great Wealth Transfer and its impact on philanthropy

America is in the midst of the Great Wealth Transfer, with $124 trillion set to pass down from older to younger generations and charities by 2048, according to Cerulli’s U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024 report.

This transition is underway—the oldest baby boomers are nearing 80 years old—with more families than ever before impacted by multi-million-dollar inheritances. Yet this shift encompasses not just wealth, but also family values, traditions and legacies, promising to reshape charitable giving and philanthropy as we know it.

To help wealthy families prepare to transition their wealth, RBC Wealth Management surveyed 1,500 high-net-worth Americans between the ages of 28 and 78, exploring the mindset and priorities of baby boomers planning to leave an inheritance (“Givers”) and millennials and Generation Xers planning to receive one (“Receivers”).

But before assets pass to the next generation, many surviving spouses—typically women—will be the interim recipients of a family’s wealth transfer, as they tend to outlive their husbands. “Many baby boomer women are philanthropists at heart,” says Angie O’Leary, head of Wealth Strategies and Solutions at RBC Wealth Management–U.S. “They tend to embrace the opportunity to make a long-term and substantive charitable impact with their wealth, and to engage their children in philanthropy.”

“For these women, it’s about more than money—it’s about their family legacy and aligning their priorities and passions with the right organizations,” she adds. This is supported by Cerulli’s estimate that, of the $124 trillion being transferred in the coming decades, $18 trillion will go to philanthropic causes. 

Yet there are barriers in these women’s paths, including a lack of preparation. This can create a vacuum where assumptions replace understanding, and the next generation may lack the ability to effectively steward the assets they inherit.

“Our research found that an astonishing 99 percent of Receivers want to respect the older generation’s values and guidance,” O’Leary says. “But oftentimes they haven’t been informed about Givers’ values and wishes.”

Indeed, the RBC Wealth Management survey found that while 89 percent of baby boomers agree it’s important to talk about an inheritance with those who will receive it, only 39 percent have provided guidelines or direction to their heirs. At the same time, only half of Givers (51 percent) and Receivers (54 percent) feel very prepared to leave or receive an inheritance, respectively. 

“The time to have family discussions about wealth transfer is now, not at the time when heirlooms and assets are passed down,” she adds.

Women are poised to take the financial helm

According to O’Leary, surviving spouses face unique challenges as they become solely responsible for financial decision making. This transition often occurs during periods of grief and significant change, making it particularly difficult to navigate.

These issues can lead to delayed decision making, disengagement from the giving process and missed opportunities to shape a philanthropic identity that feels authentic—ultimately making philanthropy feel more like an obligation than a purposeful expression of one’s values and vision.

Arabella Advisors, a consulting firm that helps clients navigate the complexities of charitable giving to maximize their philanthropic impact, recommends the following strategies to help connect wealth with purpose:

• Start with a learning portfolio: A learning portfolio allows surviving spouses to gain experience with smaller, less risky philanthropic commitments while building confidence and knowledge. This approach provides opportunities to experiment with different giving strategies and develop relationships with nonprofit organizations without committing to large-scale initiatives.
• Join peer groups: Connecting with other philanthropists and issue-area experts who share similar challenges and goals can provide valuable support, shared learning and confidence-building through meaningful relationships and timely real-world insights.
• Consult a philanthropic advisor: These professionals offer more than technical expertise—they can also serve as trusted advisors, helping donors clarify their charitable vision and design values-aligned strategies. By easing operational burdens and offering ongoing guidance, philanthropic advisors can help make giving focused, sustainable and impactful.

Next-generation inheritors: Balancing time, legacy and personal expression

Younger generations bring fresh perspectives and energy to philanthropy. But one of the most significant obstacles these inheritors face is finding the balance between honoring family philanthropic traditions and their personal passion areas.

“Tensions can arise when next-gen philanthropists navigate between collective family giving, which involves consultation and compromise, and independent giving, which allows for personal expression and quicker decisions,” O’Leary says. “These challenges are shaped not only by next-gen preferences, but also by how the leading generation invites, or limits, their participation and leadership.”

Additionally, many Receivers are in life stages where they’re busy pursuing careers or raising kids. So although they may want to participate in philanthropy, they often lack the capacity to devote as much time to it as they or the leading generation might like.

Arabella Advisors recommends the following best practices to help the next generation navigate these challenges:

• Try a portfolio-based approach to giving: This might involve allocating different percentages of philanthropic resources to family legacy gifts, individual impact goals and exploratory grants. This approach enables next-gen philanthropists to balance competing demands while maintaining engagement across multiple areas.
• Create a decision-making framework: Developing a clear decision-making framework tailored to a family’s specific goals can help streamline their philanthropic choices, reduce decision fatigue and minimize family conflict.
• Explore time-management solutions: Time-saving solutions may include delegating administrative or research responsibilities to outside experts, participating in giving circles or collaborative funding initiatives, and using technology to streamline the grant-making process.

Trusted advisors can help families start the conversation

RBC Wealth Management’s survey found that, across generations, financial advisors are by far the primary resource wealthy individuals would consult to learn more about inheritances.

Working with a financial advisor can help set families up for a smooth transition of wealth in several ways. They can help navigate complex family dynamics to honor the Givers’ legacy while empowering the Receivers to become more confident philanthropic leaders. They can also help educate the next generation about the mechanics of wealth management—everything from donor-advised funds, charitable remainder trusts and other sophisticated giving vehicles, to advice on investment strategies and tax minimization.

An advisor can also help Givers start transitioning their wealth while they are still alive. “When Givers have a personalized retirement income plan and know they will be able to fund the life they envisioned for themselves, they are more open to starting the wealth transfer earlier,” O’Leary says. ‘Giving while living,’ whether to heirs or charity, can be a powerful tool for starting the family dialogue about values and preparing heirs.

“Financial advisors are well-positioned to help clients navigate multigenerational discussions about values and legacy as a natural extension of estate planning,” O’Leary says. “It’s a good reminder for families to use their financial advisor as a resource to help with wealth transfer discussions and decisions—sooner rather than later.”