Wealth Transfer

Insights into giving and inheriting wealth across generations

Within a generation, US$4 trillion is expected to be passed down to inheritors in the United Kingdom, Canada and the United States. In the UK, our average respondent has assets of £5.1 million, but may not be ready to transfer it. We found that there is a general lack of preparedness and wealth rarely endures long enough to leave a lasting legacy.

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Personal journeys of learning

At what age do you think people should start learning about wealth and money?

27

is the average age to start

But respondents who began before 18 are more confident in their knowledge of wealth and money.

0
0 10 20 30 40 50

How do people learn about wealth and money? You may be surprised. We surveyed more than 800 people in the UK with about £5 million in assets. Our research reveals that nearly 2 out of 3 people ‘go it alone’ when building their financial knowledge.

Key findings:
  • Financial guidance begins quite late, at 27
  • 64% of respondents conduct their own research to improve their financial literacy
  • Financial education is guided by family, but it’s not the most effective method
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The inheritance experience

Receiving an inheritance can be a challenging time. Most inheritors say they were largely unprepared, unsupported and uninformed about inheritance.

Key findings:
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Are you ready to receive an inheritance?

71%

Even inheritors who’ve had discussions with their benefactors feel unprepared

of respondents knew how much they would inherit, but little else.

“It’s important to get comfortable with the idea of inheriting and to understand where the inheritance comes from. In my situation, it was handed down through the sale of a family business. I’m a steward of that wealth, rather than the owner.”

- Ian, a fifth-generation heir

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Wealth transfer on hold

Are you prepared to pass on your wealth?

1

in

4

1 in 4 people are fully prepared

But 30% of respondents have done nothing at all to prepare.

Many people have a will in place — but a will is just the beginning. Our research reveals that many benefactors have taken the first step, but have not completed their wealth transfer planning.

Key findings:
  • 55% of respondents have a will, but only 24% have a full wealth transfer plan
  • Those who have previously inherited are better prepared to pass on their wealth
Download the report

Educating the next generation

Do you rely on family members to educate your children on wealth and money?

55%

Family members

19%

Financial advisors / private bankers

20%

Friends

8%

Lawyers

9%

Independent advisors

4%

Accountants

55% of respondents rely on family but our research shows that a blend of informal and formal learning is best.

Rely primarily on
family guidance

Rely primarily on
professional advice

People want their inheritors to be better informed and more prepared than they were. But despite their good intentions, benefactors tend to repeat set patterns of behavior, leaving the next generation relatively unprepared.

Key findings:
  • Benefactors are worried the next generation won’t preserve family wealth
  • 55% of respondents rely on family members to educate their children
  • Informal learning from family is not the most effective way to build financial literacy
Download the report

“We found that there is a remarkable gap between our intentions and our actions.”

- Julian Washington, Head of Client Insight & Intermediary Relationships, RBC Wealth Management UK

Download full report

Most people want to preserve and grow their wealth so that future generations can build lasting legacies. Our research explores their intentions and actions when it comes to transferring wealth.

We surveyed 3,105 people in Canada, the United Kingdom and the United States with an average net worth of US$4.5 million, and supplemented the data with one-on-one interviews. These individuals included men and women, professionals and entrepreneurs, business owners and retirees, givers and inheritors.

We discovered that people are concerned that their heirs will not have the financial acumen to preserve and grow family wealth. Our research underscores the critical importance of advance preparation and effective knowledge transfer in preserving family wealth.

Download full report

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The influence of women on building the family legacy

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