Four Tips to Keep Your Wealth Transfer on Track
Incorporating family legacy planning into your financial plan is crucial to ensure the next generation knows how to serve as good stewards of the family’s wealth.


The Great Wealth Transfer is under way, and an estimated $84 trillion will change hands in the U.S. by 2045 as wealth accumulated by the Silent Generation and Baby Boomers makes its way to the next generations, according to Cerulli Research Group.
Studies show that successful multigenerational wealth transfer is easier said than done. In fact, 90%of affluent families see their wealth dissipate by the third generation, according to a study by The Williams Group. With this in mind, it is imperative for investors to consider the proactive measures they can implement today to defy this trend.
When preparing for a multigenerational wealth transfer, there are three foundational steps to address:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- Collaborating with advisers to establish a sound financial plan.
- Partnering with attorneys to draft a comprehensive estate plan.
- Collecting and organizing crucial information — such as trust documents, account statements, etc. — all in one centralized location. There are resources available online to help families document their complete financial inventory.
While these initial steps are absolutely necessary, there is another component that is arguably even more important — family legacy planning. Often dubbed as the “softer side” of wealth management, it's an aspect that is sometimes overlooked, yet it may hold the key to long-term success. Surprisingly, the breakdown of wealth transfer is seldom due to inadequate financial planning or tax and legal complexities, according to The Heritage Institute and the book Entrusted by Andrew Howell and David York. Instead, the primary cause of unsuccessful outcomes lies in a lack of communication and trust.
We believe there is a burgeoning area in wealth management dedicated to family legacy planning. It is not surprising that with an aging population, an increasing number of financial professionals are opting to specialize in this field. We have identified four key strategies:
1. Openly communicating
Open and clear communication within the family is the cornerstone of a successful multigenerational wealth transfer. While this might seem basic, it is surprising how many families avoid these conversations.
Discussing your estate and financial plans with your loved ones helps align everyone's expectations and ensures they understand your intentions. Sharing the “why” of your estate is as important as the “what,” as this approach fosters trust, reduces the potential for disputes and empowers the next generation to be responsible stewards of the family's wealth.
2. Having regular family meetings
Family meetings serve as a crucial platform for open and constructive communication within the family. They provide a structured environment where family members can come together in a way that promotes transparency, alignment of goals and the nurturing of shared values.
A typical family meeting might include obvious topics — such as updates on the family’s estate plan and discussions about investment strategies — as well as unexpected topics like philanthropic goals, drafting a family mission statement, capturing family history and investment education for the rising generation.
It is also an opportunity for every family member to voice their thoughts, ask questions and contribute to the decision-making process. This structured approach ensures that everyone is on the same page and helps forge a unified path toward realizing the family's mission and preserving its legacy.
3. Creating a family mission statement
A mission statement is a short summary of what matters most to you as a family, the principles that guide you. Creating a mission statement together is a powerful way to reflect upon your values as a family and gives everyone a clear understanding of what you stand for and expect of each other.
Having a shared vision — a clear purpose, values and goals — provides a roadmap that lays out where you are headed as a family and how you will get there. It provides a clear framework and set of expectations to follow based upon your agreed-upon values and beliefs.
4. Building financial acumen
Financial education is crucial for the next generation. It empowers them with the knowledge and confidence to handle inherited wealth. This ensures they can make informed investment decisions and contribute to preserving and growing the family's assets, aligning with the family's values and goals.
With financial literacy, they are better prepared to navigate the complexities of wealth, ensuring a successful and responsible wealth transfer.
Putting it all together
Transferring wealth from one generation to the next can be challenging, but taking the time to help your family prepare for what’s ahead creates the best chance for success. Family legacy planning is an ongoing effort, not a one-time task. Embrace the journey, and with each step, you'll further solidify your family's financial legacy and discover the meaning of true “wealth” in a family.
Related Content
- Gen X Should Prepare Now for the Great Wealth Transfer
- Your Home Would Be a Terrible Inheritance for Your Kids
- How to Prepare for Upcoming Estate Tax Law Changes
- Uncertain Times Call for Creative Estate Planning Strategies
- IRS Quietly Changed the Rules on Your Children’s Inheritance
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Krysta Dos Santos, CFP, is Head of Financial Planning at GenTrust. Krysta works to understand each client’s financial situation and then designs a customized plan to help them attain those targets they wish to achieve. She has a holistic approach that takes into consideration a variety of wealth management topics such as estate planning, tax strategies, philanthropic giving, risk mitigation, cash flow management, education funding and family legacy planning.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summer
The Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term Care
Many people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?
Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last Long
According to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
-
Financial Analyst Sees a Bright Present for Municipal Bond Investors
High-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
-
I'm an Insurance Pro: How Not to Get Dumped by Your Insurance Agent
Your insurance agent or broker might show you the door if you do any of these five things. Being a good customer is about more than paying your bill on time.
-
Two Estate Planning Issues You Should Never Overlook
This estate planning attorney explains why proper asset titling and beneficiary designations make a big difference when it's time to transfer your wealth.