INSIGHT

Generational wealth transfer: Tips for family offices

Kris Marney • July 24, 2025

The largest generational wealth transfer in history is underway, reshaping the landscape for wealthy families, financial advisors, and family offices across the United States.

Over the next two decades, an estimated $124 trillion in net wealth is expected to pass from the Silent Generation and Baby Boomers to Gen X, Millennials, and Gen Z, with the vast majority of these assets concentrated among high-net-worth and ultra-high-net-worth households.

This great wealth transfer is more than just a shift in financial assets; it represents a generational shift in values, investment decisions, and approaches to wealth management. For family offices, this moment presents both unprecedented opportunities and complex challenges.

The transfer of large sums—ranging from traditional investments and private equity to real estate and cash—demands careful planning, collaboration with tax professionals, and a deep understanding of the needs and expectations of younger investors and future generations.

As wealthy Americans consider how best to distribute their assets, questions about inheritance, charitable giving, and the long-term value of their legacy are more pressing than ever.

Today, we’ll explore the scale, impact, and evolving dynamics of generational wealth transfer, offering insights and strategies for family offices seeking to navigate this historic transition and empower the next generation.

What is the great wealth transfer?

The great wealth transfer is a historic economic phenomenon currently underway in the United States, representing the largest intergenerational transfer of assets in history.

According to the latest projections from Cerulli Associates, approximately $124 trillion in wealth will change hands through 2048, with $105 trillion flowing directly to heirs and $18 trillion going to charitable organizations.

Nearly $100 trillion—representing 81% of all transfers—will come from Baby Boomers and older generations as they pass their accumulated wealth to younger generations. This massive shift is already underway, with approximately $1.5 trillion to $2 trillion being transferred annually, representing around 1% of total household wealth each year.

Who’s giving and who’s receiving?

The wealth transfer isn’t distributed evenly across the population. High-net-worth and ultra-high-net-worth households, which make up only 2% of all U.S. households, will account for more than $62 trillion (over 50%) of the total transfers.

This concentration reflects the broader wealth distribution in America, where the wealthiest 10% of households will give and receive the vast majority of assets, with the top 1% holding approximately as much wealth as the bottom 90%.

Looking at the generational breakdown:

Baby Boomers will transfer approximately $53 trillion, representing 63% of all transfers
The Silent Generation will pass down about $15.8 trillion
Millennials will inherit the most over the next 25 years, receiving approximately $46 trillion
Gen X will inherit more in the near term—$14 trillion over the next decade compared to millennials’ $8 trillion in the same 10-year period

Notably, a significant portion of this inherited wealth will first pass to spouses before eventually reaching younger generations. Projections show that $54 trillion will transfer horizontally (intra-generationally) to spouses, with nearly $40 trillion going to widowed women in the baby boomer and older generations.

What asset classes are being transferred the most?

The great wealth transfer encompasses various asset classes that wealthy families have accumulated over decades:

Real estate holdings, including primary residences, vacation properties, and investment properties
Financial assets, including stocks, bonds, and cash investments
Private equity and alternative investments
Business interests and intellectual property
Personal property, including collectibles, art, and other valuables

This diverse mix of assets creates complex planning challenges for families and their advisors, particularly as younger generations may have different priorities and investment preferences than their parents and grandparents.

How will this change financial approaches and investment priorities?

As the great wealth transfer accelerates, younger generations are redefining what inherited wealth means and how it should be managed. These rising investors are more proactive, confident, and optimistic about their financial futures, with many seeking to play an active role in investment decisions and family wealth planning.

Unlike previous generations, they are more likely to embrace “giving while living,” prioritizing charitable giving, impact investing, and values-based wealth management as core components of their financial strategies.

This generational shift is also transforming asset allocation. Millennials and Gen Z are moving beyond traditional investments, showing increased interest in private equity, alternative asset classes, and sustainable investing—often seeking both strong returns and positive social impact. For family offices, understanding these evolving expectations is key to preparing heirs for responsible stewardship of inherited assets.

Unique complexities of significant wealth distribution

Successfully transferring generational wealth involves far more than simply passing assets from one generation to the next. Family offices and wealthy families face a range of complex challenges—legal, financial, and interpersonal—that can significantly impact the preservation and growth of inherited assets.

Legal and tax complexities

Legal and tax complexities

One of the most pressing challenges in wealth transfer has been transformed by the passage of the One Big Beautiful Bill Act in July 2025. The One Big Beautiful Bill Act permanently increased the federal estate and gift tax exclusion to $15 million per individual ($30 million for couples) beginning in 2026, providing significant certainty for estate planning.

This legislation prevented the automatic decrease in the basic exclusion amount that would have occurred on January 1, 2026, when the Tax Cuts and Jobs Act provisions were set to expire. Without this action, the estate tax exclusion would have dropped to an estimated $7 million per individual. The new $15 million exemption level is permanent and will be indexed for inflation using 2025 as the base year for future adjustments.

This permanent increase dramatically changes the landscape for wealthy Americans, as the higher basic exclusion amount represents the value of property that individuals can give away or leave after death without having any gift tax or estate tax imposed on the transfer. The legislation provides long-term planning certainty that was previously unavailable under the temporary TCJA provisions.

Family dynamics and communication

Family dynamics can be just as challenging as legal and tax issues. Research shows that the vast majority—up to 95%—of wealth transfer failures are attributed to communication breakdowns, unprepared heirs, and a lack of shared vision, rather than poor financial decisions.

Disagreements over inheritances, differing financial philosophies, or unresolved conflicts can lead to disputes, legal battles, and even the erosion of family relationships.

For many families, these challenges are compounded by generational gaps, with older investors sometimes reluctant to discuss wealth openly and younger generations feeling excluded or unprepared to manage inherited assets.

Governance and succession planning

Establishing robust governance structures and clear succession plans is essential for ensuring a smooth transition of wealth. Without well-defined roles, responsibilities, and decision-making protocols, families risk inefficiencies and conflicts that can jeopardize both the continuity of wealth management and family unity.

Succession planning should identify and mentor potential successors, clarify the authority of beneficiaries, and ensure all family members understand the long-term vision for the family’s assets and legacy.

Financial literacy and education

A lack of financial education among heirs is a common issue that can undermine the long-term sustainability of inherited wealth. Younger generations who have not been adequately prepared may struggle with investment decisions, risk management, and the complexities of diverse asset classes, including private equity, traditional investments, and real estate.

Family offices can address this by prioritizing financial education, organizing workshops, and fostering open dialogue to empower heirs with the knowledge and confidence needed to steward wealth responsibly.

Managing complexity and diversification

As family wealth grows, so does its complexity. Managing a diversified portfolio of financial assets, business interests, and philanthropic endeavors requires sophisticated strategies and specialized knowledge.

Family offices must coordinate with financial advisors, tax professionals, and legal counsel to optimize asset allocation, navigate regulatory compliance, and mitigate risks across multiple asset classes.

Leveraging technology and external advisors can help families stay ahead of market changes and regulatory shifts, ensuring that wealth is preserved and positioned for strong returns across generations. Addressing these issues proactively—with clear communication, robust planning, and ongoing education—empowers families to preserve their legacy, minimize conflict, and ensure a successful transfer of assets to future generations.

Best practices for successful generational wealth transfer

Transferring wealth across generations is most successful when it’s guided by clear values, thoughtful planning, and ongoing communication. Here are key best practices for family offices and wealthy families looking to preserve and grow their legacy:

Start planning early and revisit often: Begin the wealth transfer conversation well before any transition is imminent. Early planning allows families to clarify their vision, align on values, and identify the aspirations of both current and future generations. Regularly review and update your estate plan to reflect changes in family structure, tax laws, and market conditions.
Establish robust governance and open communication: Create clear governance structures—such as family constitutions, mission statements, and regular family meetings—to support decision-making and reduce the risk of conflict. Open dialogue ensures that heirs understand both the responsibilities and opportunities that come with inherited wealth, and helps maintain family unity through generational shifts.
Prioritize financial education and next-generation involvement: Prepare heirs by integrating financial literacy programs, mentorship, and hands-on experience in investment decisions.
Leverage tax-efficient strategies and professional guidance: Work with financial advisors, tax professionals, and estate attorneys to implement strong family office structures like trusts, family limited partnerships, and charitable vehicles. These tools can help minimize estate and generation-skipping transfer taxes, optimize asset allocation, and help efficiently pass assets to future generations.
Align wealth transfer with family values and legacy goals: Incorporate philanthropic giving, impact investing, or incentive-based trusts to reflect the family’s mission and encourage responsible stewardship.

By focusing on these best practices, family offices can preserve family harmony and ensure that wealth continues to benefit both heirs and the broader community for years to come.

How family offices should prepare

The generational wealth transfer is reshaping the landscape for family offices, bringing both new opportunities and evolving challenges. Looking ahead, several trends and priorities are set to define success for family offices and wealthy families.

First, technology will play an increasingly central role. As younger generations expect real-time access, intuitive digital tools, and seamless communication, family offices must invest in secure, user-friendly platforms that bridge the digital gap between older and younger investors.

Succession planning and leadership transitions remain top priorities. With lifespans increasing and family structures growing more complex, successful family offices are focusing on robust governance, targeted education, and proactive development of the next generation. Preparing heirs with both financial acumen and interpersonal skills—such as negotiation and conflict resolution—will be critical for long-term stability.

Protect your family’s wealth today, tomorrow, and well into the future with BPM

At BPM, we understand that generational wealth transfer is about more than passing assets—it’s about empowering your family’s future. As the great wealth transfer accelerates, our people-first approach ensures you have a dedicated team of professionals who see beyond the numbers to what truly matters: your family’s goals, values, and legacy.

We combine deep knowledge, innovative strategies, and a personal touch to help you navigate the complexities of wealth distribution, tax planning, and investment decisions. With BPM’s Family Office team, you gain more than access to world-class solutions—you gain a partner who listens, understands, and tailors every recommendation to your unique situation.

Let’s start the conversation about your family’s future—reach out today.