Choosing how to transfer your wealth

Record flows of assets are set to pass down the generations over the coming years, making the subject of wealth transfer an increasingly important financial topic. It can be complicated knowing how you can best transfer your wealth in the way you want, avoiding any inheritance planning anxieties.

‘Great wealth transfer’

The next three decades are set to witness the largest ever intergenerational transfer of wealth as baby boomers pass on assets. Analysts have dubbed it the ‘great wealth transfer’, with trillions set to cascade down the generations.

Differing attitudes

A new survey1 highlights baby boomer concerns about how this transferred wealth may ultimately be spent. A third of baby boomers are reluctant to pass wealth to someone whose attitude to money differs from their own; additionally, Gen Z were found to be much more likely to adopt a short-term financial outlook than their forebears. Researchers suspect these differing attitudes could therefore impact wealth transfer decisions.

Intergenerational approach

Working with a financial adviser can help to build cross-generational connections and ensure any asset transfer is conducted in a way that meets your specific needs. Developing such relationships with your beneficiaries to ensure younger generations will receive financial decision-making support can create invaluable peace of mind for both you and your heirs.

Understanding the options

A range of options are available for people looking to transfer wealth, with lifetime gifting amongst the popular methods. Complexities with Inheritance Tax and setting up trusts though, mean sound advice is critical in order to adopt the most efficient approach.

Here to support you

All the evidence suggests developing strong relationships is key to the success of intergenerational financial planning. With our support, you and your family can work towards determining and achieving your inheritance planning objectives. 

1) abrdn, 2023