| Up to 70% of family wealth can be lost by the second generation without structured planning | IHT changes and pension reforms could accelerate gifting and estate restructuring decisions | Open communication and professional guidance improve long-term wealth preservation outcomes |
The world is on the brink of an unprecedented transfer of wealth. A notable World Wealth Report¹, which gauges the opinions of over 6,000 global high-net-worth individuals (HNWIs), highlights a ‘staggering $83.5tn in wealth’ will pass to younger generations by 2048. Other research suggests the figure could be even higher. In the UK alone, around £7tn is forecast to transfer between generations by 2050.
The report, entitled ‘Sail the great wealth transfer,’ explores the transformation of the wealth management topography as Gen X, Millennials and Gen Z are set to take control of this growing pool of assets. Strong equity market performance has driven sustained growth in HNWI wealth, further increasing the value of assets likely to be passed on.
The scale of this transfer brings challenges. Research shows that up to 70% of wealthy families lose their wealth by the next generation and as many as 90% by the third. Without careful planning, wealth can quickly erode through poor decision-making, tax inefficiency and lack of financial education.
This is where proactive advice and structured planning play a vital role in preserving wealth.
Transferring wealth is about far more than handing over a lump sum. It’s about securing your family’s long-term financial wellbeing, aligning wealth with your values, and preparing future generations to manage it responsibly. Open communication is essential, even if conversations about money feel uncomfortable at first. Being transparent about your intentions, goals and expectations can help prevent misunderstandings and conflict later on.
Breaking the process into manageable steps can make it far less daunting. We can support you at every stage, including:
- Identifying your beneficiaries and clarifying who you want to benefit
- Selecting the most appropriate wealth transfer structures, such as trusts and lifetime gifting
- Developing a tax-efficient strategy to minimise Inheritance Tax (IHT) and other liabilities
- Facilitating family discussions to ensure everyone understands the plan
- Helping educate future beneficiaries so they are prepared to manage their inheritance
- Reviewing and updating your plan regularly to reflect changing circumstances.
Proposed changes to the IHT treatment of pensions from April 2027 may accelerate the pace of wealth transfer. This makes now an ideal time to review your plans and consider whether lifetime gifting or other strategies could help reduce future liabilities. With the right guidance, the great wealth transfer can be more opportunity than risk, for your family.
¹Capgemini 2025
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority does not regulate Will writing, tax and trust advice and certain forms of estate planning.