Great Wealth Transfer Underway in America
Through 2045, Baby Boomers will pass down assets worth roughly $84 trillion to Gen Z, Millennials, and Gen X. What constitutes a high-net-worth (HNW) inheritance? In the United States, that number averages nearly $750,000 per inheritor, but can be much higher.
Owners of HNW estates typically monitor and amend their estate plans regularly. They understand that the responsibility of financial stewardship will ensure continued wealth for many generations.
But what about preparing their adult children (inheritors) for this wealth transfer? How can parents help ensure the next generation stays on track? How can they engage them to assume the values underpinning their family wealth goals?
As a first step, provide young adult children with the necessary financial education to understand basic financial concepts. These concepts might include budgets, investment portfolios, risk tolerance, tax planning, and wealth management. Consider seminars, workshops, or personal discussions about handling money responsibly.
Learn more about beginning the process.
Contact us at (605) 275-5665 if you have concerns about transferring wealth to the next generation. The differences between generations are not inherently good or bad. Our attorneys can offer an objective perspective and help guide important family conversations.
