How Families Can Prepare for the Wealth Transfer of Our Time

Written by the William Allan team · Published 2025-08-25

Cerulli’s 2024 research projected about $124 trillion in U.S. wealth transfers through 2048, including about $105 trillion to heirs and $18 trillion to charities. These are rounded estimates, not guaranteed transfers, and they describe a broader category than inheritances between generations alone. For an individual family, the practical question is how to prepare for the assets and responsibilities that may change hands.

Preparation can help organize transfers around your wishes, identify tax opportunities, and prepare heirs. It cannot guarantee wealth preservation or a particular tax outcome.

Why Planning Matters Now

Families often think of estate planning as something to do “later.” Yet changes in law and family circumstances can make an old plan less useful. Legislation enacted in July 2025 increased the federal basic estate-and-gift exclusion to $15 million per person for 2026. The IRS estate-and-gift update explains the change. State estate or inheritance taxes and the needs of the family can still make planning important even when federal estate tax is unlikely.

Common Risks to Watch Out For

Unanticipated taxes: Estate, inheritance, and income taxes can apply differently depending on the estate, jurisdiction, and assets. Estimate the exposure before choosing a strategy.

Unprepared heirs: An inheritance can bring unfamiliar accounts, deadlines, and decisions. Identify who may need guidance.

Outdated documents: Old wills or missing beneficiary designations can cause costly delays and even family disputes.

Smart Ways to Protect Your Legacy

Keep documents current: Wills, powers of attorney, and beneficiary designations should be reviewed every few years.

Review tax choices: Certain trust, gifting, or charitable strategies may reduce taxes, but the result depends on the structure and circumstances. A revocable living trust alone does not create estate-tax savings.

Educate heirs early: A little financial guidance today can help prevent missteps tomorrow.

Align investments with your goals: Make sure your portfolio reflects not just returns, but your family’s values and vision.

Helping Families Across Generations

Our financial-planning role is to help families coordinate these questions with the attorney and tax professional responsible for legal documents and tax advice. The conversation can focus on:

Bringing investment decisions into the broader tax and estate-planning discussion.

Helping heirs identify the financial questions and decisions ahead.

Keeping the focus on the family’s goals, values, and future.

The Bottom Line

Updating documents, starting conversations, and reviewing available strategies are practical steps a family can take now. They can make a future transition more understandable and better aligned with the family’s wishes, even though no plan can remove every uncertainty.

If you’d like to talk about how your family can prepare, we’re here to help.

This commentary is for informational purposes only and is not investment, tax, or legal advice. All investing involves risk, including the possible loss of principal, and past performance does not guarantee future results.