What the Great Wealth Transfer Means for Families
By Steven Bowles, CLU®
A historic financial shift is already underway in the United States. Sixty-three percent of American household wealth (more than $105 trillion) currently belongs to those born before 1965 (source), and most of it will be passed to younger generations over the next two decades in what is known as the Great Wealth Transfer. While the numbers are staggering, the real story for most families isn’t about how much money will change hands. It’s about how prepared families are to handle that transition.
Recent research suggests that many are not prepared at all.
At Catalyst Advisory, we recently surveyed 1,000 American adults to learn more about their feelings and preparedness toward inheritance. We found that only 14% have had detailed conversations about inheritance with their families. Half say they’ve talked about inheritance only in general terms, and more than a third (36%) have never discussed it at all. That disconnect between scale and preparation has implications for families of all income levels.
At its core, the Great Wealth Transfer refers to assets moving from one generation to the next, largely from Baby Boomers to Gen X, Millennials, and Gen Z. This includes everything from homes and savings accounts to retirement funds, businesses, and insurance proceeds.
What makes this transfer different from those in the past is its size and complexity. Americans are living longer. Families are more geographically dispersed. Blended families are more common. And wealth is often tied up in a wider range of assets than it was decades ago.
This isn’t a phenomenon limited to ultra-wealthy households. Many families will be affected, whether through direct inheritance, shared responsibility, or decision-making during periods of transition.
Why Many Families Are Unprepared
Despite the scale of what’s coming, most families haven’t talked about inheritance in meaningful ways. The lack of preparation doesn’t usually come from neglect or indifference. In many cases, it’s driven by discomfort. Money is still a sensitive topic for most families. Conversations about inheritance often overlap with discussions about aging, illness, and mortality, which makes them easy to postpone.
Others assume that having basic estate documents in place is enough. While those documents are important, they don’t replace communication. Without shared understanding, even well-crafted plans can create confusion later.
The Hidden Risks of Silence
One of the most concerning findings from our study is that nearly one in four Americans (22%) who expect to receive an inheritance have never discussed it with their families. That means many people are relying on assumptions rather than clarity.
Those assumptions tend to surface at the worst possible time. When a health event occurs or a family member passes away, decisions need to be made quickly. If expectations haven’t been discussed, families may struggle to locate information, interpret intentions, or agree on next steps.
The result isn’t always conflict, but it’s often stress. Confusion during already emotional moments can make transitions harder than they need to be.
Legacy Matters to Most Families
Interestingly, the lack of conversation doesn’t reflect a lack of concern. When asked what they would do if they had wealth, 91% of Americans say they would leave something behind, while only 9% say they’d spend it all.
That shows legacy matters to most families. But wanting to leave something behind isn’t the same as preparing others to handle it.
A meaningful legacy includes clarity. It includes preparing loved ones for responsibility, not just providing resources. And that preparation usually starts with conversation.
Where Planning Fits Into the Picture
Planning plays an important role in the Great Wealth Transfer, but it works best when paired with communication. Wills, powers of attorney, beneficiary designations, and other tools help define what happens legally. Financial strategies, including insurance, can help provide stability and liquidity during transitions.
However, these tools don’t explain intent. They don’t convey values. And they don’t always prepare family members for the decisions they may be asked to make.
In working with families, it’s often clear that the strongest plans are the ones supported by shared understanding. When families know what to expect and why decisions were made, transitions tend to be smoother.
What Families Can Do Now
Preparing for the Great Wealth Transfer doesn’t require perfect planning or immediate decisions. It often starts with simple steps.
Talking openly about expectations and responsibilities can make a meaningful difference. Identifying where important information is kept, clarifying who would step in if needed, and revisiting plans as circumstances change all help reduce uncertainty.
These conversations don’t have to happen all at once. They’re most effective when treated as ongoing and adaptable.
Preparation Will Shape the Outcome
The Great Wealth Transfer is inevitable. How families experience it is not.
Silence creates risk. Conversation creates clarity. Families that take the time to talk and prepare earlier are better positioned to navigate transitions with less confusion and stress.
As wealth and responsibility move from one generation to the next, preparation will shape not just financial outcomes, but family experiences as well.
About the Author: Steven Bowles, founder of Catalyst Advisory, works with families and business owners to help them prepare for long-term financial transitions and protect what matters most.