Older generations have already started passing trillions of dollars to family members and charitable organizations, but the process is moving more slowly than many expected. While estimates differ, researchers agree that an enormous amount of wealth will change hands over the next several decades.
The UBS Global Wealth Report 2025 estimated that $83 trillion could be transferred within the next 20 to 25 years. Cerulli Associates has projected that the total could reach $124 trillion by 2048. Other estimates are lower after accounting for liabilities, retirement spending, taxes, charitable donations, and other expenses.
Rather than occurring all at once, the Great Wealth Transfer is becoming a long and gradual transition. One of the main reasons is that many wealthy families are not fully prepared to carry out their plans.
A BNY Wealth survey of individuals with at least $10 million in investable household assets found that 48% believe their heirs are only somewhat prepared or not prepared at all to receive a significant amount of wealth. Many wealth owners are concerned that their children or grandchildren lack financial experience, are too young, remain dependent on others, or do not have the financial knowledge needed to manage a large inheritance.
Family dynamics can also delay the process. Discussions involving money, death, and inheritance are often uncomfortable, and some families avoid them out of concern that they may create conflict. According to the survey, 17% of respondents said wealth transfer discussions had already caused disagreements within their families, while another 27% expected conflict to arise.
Although many families understand the importance of estate planning, knowing what to do does not always lead to action. The challenge is often less about understanding trusts, gifting strategies, and other planning tools and more about starting difficult conversations and following through with a clear plan.
Longer life expectancies are also changing the timing of wealth transfers. People with access to quality healthcare and financial resources are living longer, which means their assets may remain under their control for many more years. As a result, wealth transfer increasingly requires decades of planning, communication, and gradual gifting.
While 55% of surveyed wealth owners said they do not plan to give away their wealth until after death, more families are choosing to provide financial support earlier. This may include annual gifts, help with purchasing a home, private school tuition, or assistance with other major expenses.
Another complication is that many wealthy individuals hold a large portion of their net worth in a single asset, such as real estate or a privately owned business. These assets can be difficult to divide or transfer and may involve significant tax consequences.
Federal Reserve data show that baby boomers hold approximately $19.5 trillion in real estate and $8.1 trillion in unincorporated businesses. Many owners expect to sell or reduce these holdings over the next 20 years, making advance tax and estate planning especially important.
For business owners, one possible strategy is transferring ownership of the business into a trust before a sale. When structured properly, this can allow future appreciation to occur outside the owner’s estate and may reduce estate taxes.
The Great Wealth Transfer is not simply about moving money from one generation to the next. It is a long-term process that requires thoughtful planning, open communication, financial education, and a willingness to turn intentions into action.