{"id":23410,"date":"2025-09-18T11:23:43","date_gmt":"2025-09-18T15:23:43","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-us\/?p=23410"},"modified":"2025-09-18T11:23:45","modified_gmt":"2025-09-18T15:23:45","slug":"the-great-wealth-transfer-and-its-impact-on-philanthropy","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-us\/insights\/the-great-wealth-transfer-and-its-impact-on-philanthropy","title":{"rendered":"The Great Wealth Transfer and its impact on philanthropy"},"content":{"rendered":"\n

America is in the midst of the Great Wealth Transfer<\/a>, with $124 trillion set to pass down from older to younger generations and charities by 2048, according to Cerulli\u2019s U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024<\/em> report.<\/p>\n\n\n\n

This transition is underway\u2014the oldest baby boomers are nearing 80 years old\u2014with 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<\/a> and philanthropy as we know it.<\/p>\n\n\n\n

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 (\u201cGivers\u201d) and millennials and Generation Xers planning to receive one (\u201cReceivers\u201d).<\/p>\n\n\n\n

But before assets pass to the next generation, many surviving spouses\u2014typically women<\/a>\u2014will be the interim recipients of a family\u2019s wealth transfer, as they tend to outlive their husbands. \u201cMany baby boomer women are philanthropists at heart<\/a>,\u201d says Angie O\u2019Leary, head of Wealth Strategies and Solutions at RBC Wealth Management\u2013U.S. \u201cThey tend to embrace the opportunity to make a long-term and substantive charitable impact with their wealth, and to engage their children in philanthropy.”<\/p>\n\n\n\n

“For these women, it\u2019s about more than money\u2014it\u2019s about their family legacy and aligning their priorities and passions with the right organizations,” she adds. This is supported by Cerulli\u2019s estimate that, of the $124 trillion being transferred in the coming decades, $18 trillion will go to philanthropic causes.\u00a0<\/p>\n\n\n\n

Yet there are barriers in these women\u2019s paths<\/a>, 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.<\/p>\n\n\n\n

\u201cOur research found that an astonishing 99 percent of Receivers want to respect the older generation\u2019s values and guidance,\u201d O\u2019Leary says. \u201cBut oftentimes they haven\u2019t been informed about Givers\u2019 values and wishes.\u201d<\/p>\n\n\n\n

Indeed, the RBC Wealth Management survey found that while 89 percent of baby boomers agree it\u2019s important to talk about an inheritance with those who will receive it<\/a>, 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. <\/p>\n\n\n\n

\u201cThe time to have family discussions about wealth transfer is now, not at the time when heirlooms and assets are passed down,\u201d she adds.<\/p>\n\n\n\n

Women are poised to take the financial helm<\/h2>\n\n\n\n

According to O\u2019Leary, 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.<\/p>\n\n\n\n

These issues can lead to delayed decision making, disengagement from the giving process and missed opportunities to shape a philanthropic identity that feels authentic\u2014ultimately making philanthropy feel more like an obligation than a purposeful expression of one\u2019s values and vision.<\/p>\n\n\n\n

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:<\/p>\n\n\n\n