School of fish

Riding the wave

April Hamel assesses how practitioners should respond to the great wealth transfer and how best to prepare the next generation

With the largest wealth transfer in history afoot, involving an estimated USD84 trillion being passed into the hands of younger generations between now and 2045,[1] it is prime time for trustees and families to focus on building relationships with the next generation and to concentrate on generational wealth planning.

Although most businesses focus on succession planning and the next generation, many families miss this opportunity and can often be left rudderless when a patriarch or matriarch dies. Regrettably, the saying ‘clogs to clogs in three generations’ still holds true for many families.

Engaging clients to help prepare for and facilitate these conversations may aid in bridging the intergenerational communication gap and preserving wealth across generations. Although traditional estate planning focuses on the mechanics of transferring wealth, what is often overlooked is whether the infrastructure to sustain wealth exists.

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